Laidlaw International Reports Financial Results for Fiscal 2005

-- Net Income of $212 Million, Reflecting Gain on Sale of Healthcare Companies

-- EBITDA from Continuing Operations up 10.8%

-- Quarterly Dividend of $0.15 per Share Declared

-- Guidance for Fiscal 2006 Anticipates Continued Improvement

Laidlaw International, Inc. (NYSE:LI), a holding company for NorthAmerica's largest operators of school and inter-city bustransportation and a leading provider of public transit services,today reported financial results for its fiscal fourth quarter andfiscal year ended August 31, 2005. Laidlaw also provided guidance forits 2006 fiscal year. As a result of a gain on the sale of itshealthcare operations, net income for fiscal 2005 equaled $212 millionor $2.12 per share as compared to net income of $62 million or $0.59per share in fiscal 2004.

"Our efforts to improve the performance of each of the threesegments - Education Services, Greyhound and Public Transit - arereflected in the financial results," commented Kevin Benson, Presidentand Chief Executive Officer of Laidlaw International, Inc. "In theface of challenging fuel markets, we managed to grow the operatingprofitability of each of our companies and achieved improvedefficiencies across the board."

Fourth Quarter Results

Laidlaw reported consolidated revenue for the fourth quarter of$613 million, virtually unchanged from $612 million a year ago. Priceincreases and route expansion at Education Services combined withfavorable foreign exchange rates offset the impact of the company'sstrategic initiatives to exit low return school bus contracts andunprofitable Greyhound routes and schedules. EBITDA was $38 million inthe quarter, a modest decline from $39 million in the previous year,as higher fuel prices offset improvements in compensation expense.

Utilizing the balance of the proceeds from the sale of thehealthcare companies and a new $300 million credit facility, thecompany retired $399 million of remaining post-reorganization debt aswell as Greyhound bonds of $155 million during the quarter. After-taxdebt restructuring costs of $72 million led to a net loss fromcontinuing operations of $82 million in the quarter as compared to anet loss of $10 million in the prior year.

2005 Fiscal Year Results

Revenue for fiscal 2005 was $3,027 million, flat with the prioryear, reflecting both Education Services' and Greyhound's continuedefforts to shed revenue with unsatisfactory margins. Fiscal 2005EBITDA was $414 million, an increase of 10.8%, as compared to $374million for fiscal 2004 and EBITDA margin increased to 13.7%, animprovement of 140 basis points, from 12.3%. Despite higher fuelcosts, EBITDA improved as a result of strategic initiatives underwayincluding the elimination of low margin contracts and Greyhoundroutes, and lower insurance costs.

Net loss from continuing operations was $6 million after includingthe debt restructuring expenses as compared to net income of $47million in fiscal 2004.

Mr. Benson added, "We achieved much of what we set out to do infiscal 2005. The sale of the healthcare companies simplified theportfolio and provided us with the catalyst to transform the balancesheet and retire expensive, post-reorganization debt. Within a24-month period we have been able to significantly strengthen thebalance sheet and achieve an investment grade rating. We remaincommitted to delivering value to our shareholders. The purchase of 3.8million shares of Laidlaw common stock in February 2005 and thedividend program commenced in August are further evidence of thiscommitment."

EBITDA is a non-GAAP financial measure, representing operatingincome plus depreciation and amortization. A schedule reconcilingEBITDA to income from continuing operations is provided as asupplement to this release.

As of August 31, 2005, the company had unrestricted cash and cashequivalents of $217 million and debt outstanding of $314 million. Netcapital expenditures for fiscal 2005 were $152 million, as compared to$169 million for the prior year.

The Board of Directors has declared a dividend payable of $0.15per share to the owners of the company's common stock. The dividendwill be paid on December 7, 2005 to stockholders of record as ofNovember 29, 2005. Dividends are reviewed quarterly and declared bythe Board at its discretion.

Fiscal 2006 Outlook

Laidlaw anticipates that it will continue to realize improvementsin its financial performance in fiscal 2006. Education Services, inits third year of rationalizing underperforming contracts, willcontinue to constrain revenue growth. Greyhound is expected tocomplete the overhaul of its network, refining its routes andschedules to better serve customers and improve profitability. Thesesteps will offset increases in revenue that come from price increasesand organic growth. Accordingly, Laidlaw expects 2006 revenue to berelatively flat with a range of a decline of one percent to anincrease of one percent as compared to 2005 revenue.

EBITDA for fiscal 2006 is projected to be in the range of $425million to $450 million as high fuel prices will partially offsetcontinued operating improvements. The anticipated improvement inEBITDA is expected to come principally from the Greyhound segment asits network improvements mature and its operating lease expensesdecline in conjunction with the reduction of the number of leasedbuses.

The EBITDA margins of Education Services have improved by 110basis points over the last two years. The school bus segment continueswith its many initiatives underway to optimize profitability,including the incorporation of higher fuel prices into contractrenewals. Still, with high fuel prices expected to continue for sometime, the company now anticipates that Education Services will takelonger to achieve its previously targeted improvement in EBITDA of 300to 400 basis points than the three to four year time frame originallyset.

Greyhound is expected to continue its improvement in EBITDA marginas network changes achieve expected improvements in margins. Greyhoundhas seen a 300 basis point improvement in EBITDA margin over the lasttwo years to 8.5% from 5.5%, and expects EBITDA margin will furtherexpand into the low double-digit range over the course of the next fewyears.

Laidlaw is also providing earnings per share guidance fromcontinuing operations of $1.20 to $1.35 per share.

Net capital expenditures for fiscal 2006 are projected to beapproximately $200 million to $235 million reflecting higher spendingafter two years of restraint at Education Services and an increase inrequired bus lease buy-outs at Greyhound.

The company will hold a conference call hosted by seniormanagement to discuss the financial results on Thursday, November 10,2005 at 10:00 a.m. (eastern time). A web cast of the conference callwill be accessible at Laidlaw International's website www.laidlaw.com.
To participate in the call, please dial:
800-380-1063 - (US and Canada)
706-679-8614 - (International)

A replay will be available immediately after the conference callthrough December 11, 2005. To access the replay, dial 800-642-1687(U.S and Canada) or 706-645-9291 (International); access code:1567063. Additionally, the web cast will be archived on the company'swebsite.

Certain statements contained in this press release, includingstatements regarding the status of future operating results and marketopportunities and other statements that are not historical facts, areforward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. These forward-lookingstatements can be identified by the use of terminology such as:believe, hope, may, anticipate, should, intend, plan, will, expect,estimate, continue, project, positioned, strategy and similarexpressions. Such statements involve certain risks, uncertainties andassumptions that include, but are not limited to,

-- Economic and other market factors, including competitive pressures and changes in pricing policies;

-- The ability to implement initiatives designed to increase operating efficiencies or improve results;

-- Costs and risks associated with litigation;

-- Changes in interpretations of existing, or the adoption of new, legislation, regulations or other laws;

-- The potential for rising labor costs and actions taken by organized labor unions;

-- Continued increases in prices of fuel and potential shortages;

-- Control of costs related to accident and other risk management claims;

-- Terrorism and other acts of violence;

-- The ability to produce sufficient future taxable income to allow us to recover our deferred tax assets;

-- Potential changes in the mix of businesses we operate; and

-- The inability to earn sufficient returns on pension plan assets thus requiring increased funding.

Should one or more of these risks or uncertainties materialize, orshould underlying assumptions prove incorrect, actual outcomes mayvary materially from those indicated. In light of these risks anduncertainties you are cautioned not to place undue reliance on theseforward-looking statements. The Company undertakes no obligation topublicly update forward-looking statements, whether as a result of newinformation, future events or otherwise. You are advised, however, toconsult any further disclosures the Company makes on related subjectsas may be detailed in the Company's other filings made from time totime with the Securities and Exchange Commission.
LAIDLAW INTERNATIONAL, INC.
Consolidated Statements of Operations
( $ in millions except per share amounts )
(unaudited)

Three Months Ended Year Ended
August 31, August 31,
2005 2004 2005 2004
---------- ---------- ---------- ----------

Revenue $613.0 $612.2 $3,026.5 $3,026.8

Compensation expense 312.1 321.7 1,519.0 1,555.8
Vehicle related costs 67.9 67.4 259.5 260.5
Fuel expenses 46.0 37.0 199.7 163.1
Insurance and accident
claim costs 25.4 23.3 163.2 206.0
Occupancy costs 40.3 40.9 156.7 157.8
Depreciation and
amortization 45.3 41.2 249.1 230.7
Other operating expenses 83.1 83.4 314.4 310.1
---------- ---------- ---------- ----------
Operating income (loss) (7.1) (2.7) 164.9 142.8

Interest expense (11.7) (21.0) (70.8) (78.6)
Debt restructuring costs (112.2) - (112.2) -
Other income, net 1.0 6.0 10.5 2.1
---------- ---------- ---------- ----------
Income (loss) from
continuing operations
before income taxes (130.0) (17.7) (7.6) 66.3
Income tax benefit
(expense) 48.5 7.4 2.0 (19.8)
---------- ---------- ---------- ----------

Income (loss) from
continuing operations (81.5) (10.3) (5.6) 46.5
Income (loss) from
discontinued operations (2.1) 7.6 218.0 15.2
---------- ---------- ---------- ----------
Net income (loss) $(83.6) $(2.7) $212.4 $61.7
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

Basic earnings (loss) per
share
Continuing operations $(0.81) $(0.10) $(0.06) $0.47
Discontinued operations (0.02) 0.07 2.18 0.15
---------- ---------- ---------- ----------
Net income (loss) $(0.83) $(0.03) $2.12 $0.62
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

Diluted earnings (loss)
per share
Continuing operations $(0.81) $(0.10) $(0.06) $0.45
Discontinued operations (0.02) 0.07 2.18 0.14
---------- ---------- ---------- ----------
Net income (loss) $(0.83) $(0.03) $2.12 $0.59
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------



LAIDLAW INTERNATIONAL, INC.
Operating Highlights
( $ in millions )
(unaudited)

Three Months Ended Year Ended
August 31, August 31,
2005 2004 2005 2004
---------- ---------- ---------- ----------

Revenue
Education services $197.2 $185.6 $1,518.2 $1,495.8
Greyhound 337.6 349.4 1,201.6 1,230.5
Public transit 78.2 77.2 306.7 300.5
---------- ---------- ---------- ----------
Consolidated $613.0 $612.2 $3,026.5 $3,026.8
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

EBITDA
Education services $(21.1) $(21.1) $296.0 $279.3
Greyhound 55.4 48.6 101.9 86.2
Public transit 3.9 11.0 16.1 8.0
---------- ---------- ---------- ----------
Consolidated 38.2 $38.5 $414.0 $373.5
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

EBITDA Margins
Education services (10.7)% (11.4)% 19.5% 18.7%
Greyhound 16.4% 13.9% 8.5% 7.0%
Public transit 5.0% 14.2% 5.2% 2.7%
Consolidated 6.2% 6.3% 13.7% 12.3%

---------------------
Net Capital Expenditures 152.4 168.7
---------------------

EBITDA is presented solely as a supplemental disclosure with respect
to liquidity because the Company believes it provides useful
information regarding its ability to service or incur debt. EBITDA is
not calculated the same way by all companies. We define EBITDA as
operating income plus depreciation and amortization. EBITDA is not
intended to represent cash flow for the period, is not presented as an
alternative to operating income as an indicator of performance, should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with generally accepted accounting
principles (GAAP) and is not indicative of operating income or cash
flows from operations as determined under GAAP.



LAIDLAW INTERNATIONAL, INC.
Reconciliation of Non-GAAP Financial Measures
( $ in millions )
(unaudited)

Three Months Ended Year Ended
August 31, August 31,
2005 2004 2005 2004
---------- ---------- ---------- ----------

EBITDA $38.2 $38.5 $414.0 $373.5

Depreciation and
amortization (45.3) (41.2) (249.1) (230.7)
Interest expense (11.7) (21.0) (70.8) (78.6)
Debt restructuring costs (112.2) - (112.2) -
Other income, net 1.0 6.0 10.5 2.1
Income tax benefit
(expense) 48.5 7.4 2.0 (19.8)
---------- ---------- ---------- ----------

Income (loss) from
continuing operations $(81.5) $(10.3) $(5.6) $46.5
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------

EBITDA is presented solely as a supplemental disclosure with respect
to liquidity because the Company believes it provides useful
information regarding its ability to service or incur debt. EBITDA is
not calculated the same way by all companies. We define EBITDA as
operating income plus depreciation and amortization. EBITDA is not
intended to represent cash flow for the period, is not presented as an
alternative to operating income as an indicator of performance, should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with generally accepted accounting
principles (GAAP) and is not indicative of operating income or cash
flows from operations as determined under GAAP.