Winnipeg, Manitoba, Canada − February 12, 2008

(TSX:NFI.UN) New Flyer Industries Inc. (“New Flyer”) the leading manufacturer of heavy-duty transit vehicles in Canada and the United States, announced today that it has signed an exclusive five-year agreement with Ballard Power Systems, an industry leader in fuel cell products, for use of fuel cell modules in shuttle buses that New Flyer plans to develop. 

New Flyer’s commercial relationship with Ballard began in 1993, when the two companies developed the world’s first hydrogen fuel cell bus.  In 2007, New Flyer was awarded a contract by BC Transit for the world’s largest fleet of hydrogen fuel cell buses, and Ballard was named as the fuel cell technology provider.

“New Flyer is excited to team once again with Ballard to leverage its hydrogen fuel cell technology in the bus industry,” said John Marinucci, President and Chief Executive Officer of New Flyer. “The market demands that we find and utilize innovative technology to advance the development of zero-emission buses that are both environmentally-friendly and fuel efficient. Ballard is the leader in fuel cells and we look forward to a very productive relationship.” 

Shuttle buses are smaller and lighter than full-size buses, typically less than thirty-two feet in length, and are intended for use in a range of growing applications, such as community feeder routes, where their reduced noise profile and emission-free operation is highly valued. Under the agreement, New Flyer will develop and manufacture a shuttle bus specifically suited for Ballard’s fuel cell technology and Ballard’s existing fuel cell module will be integrated into the New Flyer shuttle bus chassis.  

John Sheridan, President and Chief Executive Officer of Ballard said, “New Flyer has demonstrated its leadership through successful commercialization of hybrid-electric buses across Canada and the United States. We have worked very closely together in the past and are working with New Flyer now toward delivery of twenty 40-foot heavy-duty fuel cell buses to BC Transit. This new agreement will enable both companies to address what could be an important emerging market opportunity.” 

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 2,200 employees, New Flyer is a technology leader, offering the broadest product line in the industry, including drive systems powered by clean diesel, LNG, CNG, hydrogen fuel cell 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