Investor Presentation February 2006

Forward-Looking Statement The following presentation may contain forward-looking statements. Although such statements reflect our current reasonable judgment regarding the direction of our business, actual results may differ materially from those projected here. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise. You can find information on the risk factors concerning why the actual results might differ from statements made today in our documents filed with the Securities and Exchange Commission.

Portfolio of Transportation Companies • Simplified holdings – Sold healthcare assets • Used proceeds to recapitalize balance sheet – Net debt $97 mm at FY’05 • Enhance operating performance of each segment · Build platforms for growth · Spend capital wisely · Return excess cash to investors – Purchased $85 mm of stock (Feb. ’05) – Initiated quarterly dividend, $0.60 per share annualized (Aug. ’05) – Announced $200 mm share buyback (Jan. ’06)

Financials (presented on a continuing operations basis) (1) See Appendix for reconciliation of EBITDA to GAAP measures. 2003 EBITDA 2004 2005 $3,027 $360 $414 $374 % rev 12.0% 12.3% 13.7% ($ in millions, except EPS) 1Q 0.2x Income statement Revenue $2,987 $3,027 Net debt/EBITDA 3.1x 2.6x Key leverage ratio CapEx, net $251 $169 (1) $152 ’05 ’04 $814 $847 $127 15.6% $155

18.3%
$ (0.06) $ 0.24 $ 0.58 EPS (cont.ops) $ 0.45 $ 1.14

Education Services
Overview

Operate 41k buses

– 27% market share outsourced
– 500+k buses in North America

Revenue is contractual and

renewable
Initiatives Underway

Targeting margin expansion of

300 to 400 bps

Rationalizing underperforming

contracts

Using scale to lower costs

Safely transporting two million children to and from school each day. $1,470 $1,495 $1,520 $1,545 2003 2004 2005 $270 $280 $290 $300 Revenue EBITDA

Education Services Revenue / EBITDA 18.4% 18.7% 19.5%

Greyhound
Overview

Great American icon
Provides scheduled, charter

and package express services
Initiatives Underway

Significant network changes Refreshing the brand Targeting key demographic

groups

Focusing on pricing

The only national network of scheduled inter-city bus transportation services. $1,150 $1,175 $1,200 $1,225 $1,250 2003 2004 2005 $60 $70 $80 $90 $100 $110 $120 Revenue EBITDA Greyhound

Revenue / EBITDA 5.5% 7.0% 8.5%

Transformed Network U.S. network changes As of 1/06 Before After

Public Transit Services
Overview

Contracts with municipal

transit authorities for paratransit and fixed route service

Low capital requirements

Initiatives Underway

New management team
Focusing on:

– Contract growth – Cost drivers Serving 51 million passengers

annually. $250 $275 $300 $325 2003 2004 2005 $0 $5 $10 $15 $20 $25 Revenue EBITDA Public Transit Revenue / EBITDA 5.8% 2.7% 5.2%

Summary

Focused transportation company

– more than 50% of revenue is contractual and renewable

Very strong balance sheet
Clear profitability improvement initiatives at all

companies

Maintain ROI focus on capex decisions

Committed to delivering value to shareholders

Appendix Reconciliation of Non-GAAP Financial Measures ( $ in millions) 2003 2004 2005 2004 2005 EBITDA 360 374 414 127 155 Depreciation and amortization (235) (231) (249) (68) (59) Interest expense (38) (79) (71) (19) (5) Debt restructuring costs (112) Other income (expense), net (20) 2 10 1 2 Gain on discharge of debt 1,483 Fresh start accounting adjustments (548) Income tax benefit (expense) 8 (20) 2 (16) (35) Cumulative effect of change in accounting principle (637) Income (loss) from continuing operations 373 46 (6) 25 58 Year Q1