New Flyer Receives Multiple Bus Orders for 965 Buses Totaling Over US $389.6 Million

Winnipeg, Manitoba, Canada; May 24, 2007

New Flyer of America Inc. and New Flyer Industries Canada ULC (NFI ULC), subsidiaries of New Flyer Industries Inc. (New Flyer) (TSX:NFI.UN), the leading manufacturer of heavy-duty transit vehicles in Canada and the United States, have recently secured major orders for 965 buses of which 890 are firm and 75 are options totaling over US $389.6 million in new and repeat business from transit properties in the United States and Canada.

Some highlights of these awards include:

Chicago Transit Authority (CTA) Board in Chicago, IL has authorized an additional option for 400 ultra-low sulphur (clean) diesel 40-foot buses. This brings the total number of buses ordered from New Flyer by CTA to 1,050 since 2005.

Massachusetts Bay Transportation Authority (MBTA) in Boston, MA received Board authorization to exercise options for 155 clean diesel 40-foot buses. This brings the total of buses ordered from New Flyer by MBTA to 310 since 2006.

The City of Montebello, CA Board authorized the purchase of 150 gasoline-electric 40-foot buses for the City of Montebello and other named agencies in a consortium. This will bring the total number of New Flyer gasoline-electric buses in California to 242 once delivered. New Flyer is the only heavy-duty bus manufacturer in North America to supply this clean air technology.

The Ministry of Transportation of Ontario, Canada has partnered with a number of communities for a new order of 66 clean diesel 40-foot buses plus 75 option buses.

Smaller new orders and exercised options make up the balance of contracts received and include drive systems powered by hybrid, compressed natural gas and clean diesel technology.

This announcement when combined with the orders reported on March 1, 2007 and May 16, 2007, total to 2,706 buses for a total of over US $1.3 billion. Year-to-date in 2007, New Flyer has received 1,733 firm orders and 973 option orders. With these orders, New Flyer’s backlog at the end of April is expected to reach approximately 5,185 buses or 6,460 equivalent production units. The backlog has increased 26.0% since December 31, 2006 to US $2.3 billion. The firm order book has increased 25.2% or US $193 Million to US $958 million from March 31, 2007.

"The repeat business is a testament to our solid operating performance. Our ability to bring reliable and innovative products to the market has uniquely positioned New Flyer in our industry and is driving the increased market penetration", said John Marinucci, President and CEO of New Flyer.

The company has scheduled an increase to production rates in the second half of the year to maintain delivery lead times to less than 52 weeks.

NOTE: An exchange rate of US $1.00 = Cdn $1.09 was used for the Canadian contracts.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of New Flyer and NFI ULC that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed in the Annual Information Form filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, New Flyer and NFI ULC disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.