New Flyer Announces Recent Bus Orders for 1,180 Buses Valued at Over US$624 Million

Winnipeg, Manitoba, Canada − October 22, 2007

(TSX:NFI.UN) New Flyer Industries Inc. (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit vehicles in Canada and the United States, announced today that it has received new orders for up to 1,180 buses for a combined value of over US $624 million.  Of these new orders, 794 buses are firm orders and 386 are options.  These orders are for a variety of vehicle configurations, including 35-, 40- and 60-foot buses and diesel, hybrid-electric, natural gas and fuel cell propulsion systems. 

The largest of these orders is from Southeastern Pennsylvania Transportation Authority (“SEPTA”).  New Flyer has been advised that SEPTA’s board of directors has approved an order to New Flyer for 400 40-foot hybrid buses with options for up to an additional 80 buses.  Including this recent award, SEPTA has ordered over 1100 buses from New Flyer since 2000, including clean diesel, hybrid-electric and electric trolley buses.

Additionally, New Flyer was recently awarded an order by BC Transit in Victoria,

Other bus orders recently awarded to New Flyer include:

• Community Transit in Everett, WA has ordered 15 60-foot hybrid BRT vehicles with options for an additional 34 buses

• OC Transpo in Ottawa, ON has ordered 47 clean diesel 60-foot buses with options for an additional 77 buses

• Mississauga Transit in Mississauga, ON has ordered 35 60-foot diesel buses

• Valley Metro of Phoenix, AZ has ordered 52 40-foot compressed natural gas (CNG) buses

• Calgary Transit in Calgary, AB has ordered 50 40-foot and 15 60-foot clean diesel buses

• Winnipeg Transit in Winnipeg, MB has ordered 20 60-foot hybrid buses and 33 40-foot diesel buses

• Other new contracts and exercised options total 302 buses

The level of activity in 2007 has resulted in a significantly improved backlog position for the year.  The total number of orders reported by New Flyer in 2007 is 3,886 buses with a value of over US $1.9 billion. 

New Flyer’s backlog as of the end of September 2007 was 6,641 equivalent production units, which represents an increase of 25% in comparison to the 5,313 equivalent production units in backlog at the start of the year.  The value of the order backlog as of the end of September 2007 of US $2.5 billion has increased by 37% compared to the US $1.8 billion backlog at the start of the year.  The portion of firm orders included in the backlog has increased to US $1.1 billion as of the end of September 2007 from US $0.8 billion at the start of the year.

NOTE:  All dollar amounts are stated in US currency based on an exchange rate of US $1.00 = Cdn $0.9848 to calculate the value of the Canadian contracts in this release.

About New Flyer

New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada.  The Company’s three facilities -- in Winnipeg, MB, St. Cloud, MN and Crookston, MN -- are all ISO 9001, ISO 14001 and OHSAS 18001 certified.  With a skilled workforce of approximately 2,100 employees, New Flyer is a technology leader, offering the broadest product line in the industry, including drive systems powered by clean diesel, LNG, CNG and electric trolley as well as energy-efficient gasoline-electric and diesel-electric hybrid vehicles.  All products are supported with an industry-leading, comprehensive parts and service network.  New Flyer’s Income Deposit Securities are traded on the Toronto Stock Exchange under the symbol NFI.UN.  Further information is available on Company’s web site at www.newflyer.com.

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 New Flyer Industries Canada ULC (“NFI ULC”) that involve risks and uncertainties.  Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material.  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 other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com.  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.

For further information, please contact:

New Flyer Industries Inc.
Glenn Asham, Chief Financial Officer
Tel: 204-224-1251