Exhibit 99.1

               [Atlantic Express Transportation Corp. Letterhead]

               STATEMENT BY ATLANTIC EXPRESS TRANSPORTATION CORP.
              ATLANTIC EXPRESS TO CONTINUE BUSINESS AS USUAL DURING
                                 REORGANIZATION

On August 16, 2002, Atlantic Express  Transportation Corp., a provider of school
bus  transportation,  paratransit and commuter  services,  and its  subsidiaries
filed  a  petition  under  Chapter  11 for  reorganization.  Our  transportation
services will continue as usual without  interruption  during the reorganization
process.

We will continue to transport  school  children  throughout the country with the
same  care and  quality  of  transportation  as we have  rendered  over the last
quarter century to hundreds of satisfied  school  districts and other customers.
We will have adequate financing to continue  operations without any reduction in
the scope or quality of our services and our employees  will continue to receive
their salary and benefits to which they are entitled.  We are currently  gearing
up our fleet for another successful start of the school year in September.

The filing was  necessitated  by  skyrocketing  costs for  automobile  liability
insurance,  workers compensation insurance,  health and welfare benefits for our
workforce and the continued  subsidizing of escort services provided in New York
City.

We expect to emerge from Chapter 11  reorganization  as a stronger company which
will continue to service the needs of our many customers.

Atlantic Express is the largest American-owned American-based school bus company
operating  approximately  7,500 vehicles from coast to coast.  We are one of the
largest school transportation providers in the cities of New York, Philadelphia,
St. Louis, Chicago and Los Angeles. Atlantic is also one of the nation's largest
providers   of   paratransit   service   and   provides   coach   and   charter,
pre-kindergarten transportation as well as bus sales and bus leasing.

For additional information, please contact:

     Domenic Gatto, CEO/President
     Nathan Schlenker, CFO
     Telephone: (718) 442-7000

Information contained in this statement other than statements of historical fact
are  forward-looking  statements  subject  to various  risks and  uncertainties.
Although   Atlantic   believes   that  the   expectations   reflected   in  such
forward-looking  statements are reasonable,  no assurance can be given that such
expectations will prove correct.