
<PAGE>   1
                              FOR:   COACH USA, INC.

                      APPROVED BY:   Larry King, Chairman and CEO
                                     Robert Womack, Senior VP and CFO
                                     One Riverway, Suite 500
                                     Houston, TX  77056-1921
                                     1(888) COACH-US

                          CONTACT:   David Stutts, VP - Financial Administration
                                     1(888) COACH-US

                                     Betsy Brod/Jonathan Schaffer
                                     Investor Relations
                                     Media: Eileen King
                                     Morgen-Walke Associates, Inc.
FOR IMMEDIATE RELEASE                (212) 850-5600
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                 STAGECOACH HOLDINGS PLC ENTERS INTO DEFINITIVE
                      MERGER AGREEMENT WITH COACH USA, INC.

          ~ STAGECOACH TO ACQUIRE COACH USA FOR $42 PER SHARE IN CASH ~

         HOUSTON, TX - JUNE 14, 1999 - COACH USA, INC. ("COACH") (NYSE: CUI) AND
STAGECOACH HOLDINGS PLC ("STAGECOACH") (LSE: SGC) today jointly announced that
the two companies have signed a definitive merger agreement pursuant to which
Stagecoach will acquire all of the outstanding common stock of Coach at a price
of $42.00 per share in cash in a transaction valued at approximately $1.8
billion, including assumption of debt. The transaction has been approved
unanimously by the Boards of Directors of both companies.

         Under the terms of the merger agreement, a subsidiary of Stagecoach
will promptly commence a tender offer for all outstanding shares of Coach stock
at a net price of $42.00 per share in cash. The tender offer is expected to
commence on June 18, 1999. Any shares not purchased pursuant to the tender offer
will be acquired in a subsequent merger at a price of $42.00 per share in cash
as soon as practicable after completion of the tender offer. The merger
agreement contains certain limited provisions that restrict the ability of the
Coach Board of Directors to have discussions or negotiate with other interested
parties.

          In connection with the execution of the merger agreement, Stagecoach
entered into tender agreements with the Directors of Coach who collectively own
approximately 8% of the outstanding Coach shares, pursuant to which such
Directors agreed, among other things, to tender their shares in the offer and
not to withdraw such shares during the term of the merger agreement.

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STAGECOACH HOLDINGS ENTERS INTO DEFINITIVE MERGER AGREEMENT WITH COACH USA
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         Completion of the tender offer is subject to customary conditions,
including the acquisition by Stagecoach of a majority of Coach's common shares
on a fully diluted basis, receipt of necessary governmental approvals, including
approval from the US Surface Transportation Board (as explained below), the
expiration of applicable waiting periods under the Hart-Scott-Rodino Act, and
the approval of Stagecoach's shareholders. The holders of approximately 24% of
Stagecoach's outstanding shares have already agreed to vote in favor of the
transaction. The merger agreement is not subject to a financing contingency.

         The tender offer will be subject to receipt of informal approval by the
staff of the US Surface Transportation Board ("US STB") of a required voting
trust agreement. Coach shares acquired by Stagecoach in the tender offer and the
merger will be placed in the voting trust pending full approval by the US STB.
However, other than the informal approval of the voting trust agreement, US STB
approval will not be a condition to the transaction.

         The merger agreement provides for the payment to Stagecoach of a fee of
$35 million if the merger agreement is terminated in certain circumstances. The
merger agreement also provides for a termination fee of $25 million to be paid
to Coach following, in certain circumstances, a change in the recommendation of
the Stagecoach Board to Stagecoach shareholders to vote in favor of the
acquisition.

         J.P. Morgan, which is also acting as dealer manager in connection with
the tender offer, and Noble Grossart Limited advised Stagecoach. Morgan Stanley
Dean Witter acted as Coach's financial adviser in connection with the
transaction. Morgan Stanley has delivered to the Coach Board of Directors a
written opinion to the effect that, as of the date of such opinion and based
upon and subject to certain matters stated therein, the $42.00 per share cash
consideration to be received in the tender offer and the merger by holders of
Coach common stock was fair, from a financial point of view, to such holders.

         Brian Souter, Chairman of Stagecoach, said, "I am delighted that we are
entering the North American market at a relatively early stage in its
consolidation with the prospect of exciting growth opportunities. In Coach USA
we are acquiring an excellent company which has already built a strong position
and brand in North America. Our two companies have a shared background of
successful growth by acquisition and we have found a high degree of
compatibility between the two management teams."

         Larry King, Chairman and Chief Executive Officer of Coach, said, "I
believe that in Stagecoach we have identified the ideal partner who can provide
the financial flexibility and resources to support our next growth phase. The
Coach USA management team will be remaining in place going forward. We are
excited about working alongside the management of Stagecoach to meet our
collective objectives in North America."


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STAGECOACH HOLDINGS ENTERS INTO DEFINITIVE MERGER AGREEMENT WITH COACH USA
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         Stagecoach is an international passenger transportation company
headquartered in Perth, Scotland. Stagecoach operates bus, train and airport
businesses in the United Kingdom, buses and ferries in New Zealand, buses in
Sweden, Finland, Portugal, Australia, Hong Kong and China together with
associated undertakings in railways in the United Kingdom and toll roads in
China. The Stagecoach group employs approximately 37,000 people worldwide, with
annual revenues of approximately $2.5 billion.

         Coach USA is the leading provider of motorcoach, airport shuttle and
taxi services in North America. Through over 120 cities in 33 states, provinces
and territories, Coach USA's services include motorcoach charters, sightseeing
and tours, contract services for municipalities and corporations, commuter
transportation, airport shuttles and taxis. Coach USA employs approximately
12,500 people, with reported revenues of approximately $804 million in 1998.

         Note: This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on the current plans and expectations of Coach USA, Inc.
and involve risks and uncertainties that could cause actual future results to be
materially different from those set forth in the forward-looking statements.
Important factors that could cause actual results to differ include, among
others, risks that no transaction will occur and other risks associated with
possible business combination transactions.

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