Highlights:

• Stable revenues and order backlog
• Continued steady increase in Adjusted EBITDA despite plant capacity utilization of less than 60%
• Strong growth in Aftermarket operations

Winnipeg, Manitoba, Canada; March 22, 2006; New Flyer Industries Inc. (TSX:NFI.UN), the leading manufacturer of heavy-duty transit buses in Canada and the United States, today announced its results and those of its subsidiary, New Flyer Holdings, Inc. ("New Flyer" or the "Company") for the period ended January 1, 2006. The results demonstrate a stable level of revenue as well as solid growth in Adjusted EBITDA compared to the prior year, providing ongoing support for unitholder distributions.

This is the first year-end period for New Flyer since the initial public offering ("IPO") of Income Deposit Securities ("IDSs") and the associated acquisition of its operating business on August 19, 2005, which gave rise to a nineteen-week post-closing operating period.

As a result, in order to provide investors with a more meaningful assessment of its recent performance, New Flyer also announced results for the thirteen-week and combined pro forma 52-week periods ended January 1, 2006. The pro forma combined results comprise the results of the nineteen-week period since the IPO in addition to the 33-week pre-IPO period as described in the MD&A. For comparison purposes, these 13-week results and pro forma combined results are compared with 13-week and 53-week periods ended January 2, 2005, as described in the MD&A. Note that all figures are in United States dollars unless stated otherwise.

The Company’s order backlog (comprised of firm orders and options) at year-end was approximately $2.0 billion, consistent with the level at the time of the IPO and compared to $2.1 billion at January 2, 2005. This order position, comprised of 73.6% of U.S. orders and 26.4% of Canadian orders, continues to provide the order visibility to allow the Company to efficiently plan the production schedule, thereby minimizing expenses and working capital requirements.

New Flyer’s results for the 52-weeks ended January 1, 2006 reflected improvement over last year’s results for the longer 53-week period ended January 2, 2005.

Total revenues were $590.8 million, down 4.2 percent from $617.0 million in last year’s 53 week period ended January 1, 2006. Revenue from bus manufacturing operations decreased 6.2% from $572.8 million to $537.4 million, reflecting reduced industry volume, partially offset by higher pricing. Revenue from aftermarket operations was $53.4 million, compared to $44.2 million last year, representing growth of 20.8%.

Management believes that the reduction in industry demand for new buses in the United States in 2005 waslargely the result of the temporary deferral of purchases by municipalities and local transit authorities, due to budgetary constraints at state and local levels. Management expects that this deferral of bus replacements will continue in 2006, but should lead to an increase in demand in future years because ridership trends and government funding support the replacement and growth of the active fleet in both the United States and Canada. New Flyer’s market share in 2005 has remained steady at an estimated 36%.

The strong growth in aftermarket revenue is consistent with New Flyer’s historical performance, as New Flyer buses continue to represent a larger share of the active installed fleet in the combined United States and Canadian market. In addition, the deferral of new bus purchases as referenced above, contributes to higher demand in the aftermarket business as customers maintain older fleets.

Adjusted EBITDA for the 52-weeks ended January 1, 2006 increased 4.3% to $73.4 million, compared with $70.3 million in the longer, 53-week period last year. Adjusted EBITDA margins in 2005 were 12.4% compared with 11.4% last year. Included in Adjusted EBITDA for fiscal 2005 were incremental administrative costs of $0.8 million, which were primarily incurred in the fourth quarter, resulting from new requirements as a public company. Excluding these costs, which were not incurred in the prior year, Adjusted EBITDA increased by 5.5% on a year-over-year basis.

"We are pleased with the continued improvement in operating performance for the year," said John Marinucci, President and Chief Executive Officer of New Flyer. "Our strong focus on margin improvement, evidenced in our new, innovative products and our commitment to cost containment, has resulted in strong growth in Adjusted EBITDA. This strong performance was achieved despite relatively weak overall demand in the North American transit industry resulting in reduced utilization of plant capacity. When demand rebounds, we are well positioned to capitalize."

For the combined 13-week period ended January1, 2006, New Flyer generated revenue of $136.7 million, compared with $160.2 million in the corresponding period last year. Revenue from bus manufacturing operations decreased 17.3% from $149.0 million to $123.2 million, while revenue from aftermarket operations increased 21.1% from $11.2 million to $13.6 million. The respective changes reflected the overall trends evident in the full year results.

Adjusted EBITDA for the 13-week period ended January 1, 2006 increased 6.1% from $16.7 million in the corresponding period last year to $17.7 million, while Adjusted EBITDA margins increased to 12.9% from 10.4% . The increase was the result of growth in aftermarket operations and increased profit margins on bus sales.

On October 17, 2005, New Flyer Industries Inc. ("NFI") and New Flyer Industries Canada ULC ("NFI ULC") paid an initial distribution of C$ 0.1301 per IDS for the period from August 19, 2005 to September 30, 2005, and have since declared distributions at the monthly rate of C$ 0.09167 per IDS.

For the nineteen-week period since the IPO, August 19, 2005 to January 1, 2006, New Flyer had total revenue of $208.9 million, Adjusted EBITDA of $24.8 million and Distributable Cash of C$ 21.1 million. Cash distributions, including distributions on Class B and Class C shares of the Company, for this period totaled C$ 18.4 million, representing a payout ratio of 87.3% of total Distributable Cash, as described in the MD&A.

A conference call for analysts and interested listeners will be held March 24th at 8:30 a.m. (ET). The call-in numbers for listeners are 416-644-3420 or 800-814-4941. A live audio feed of the call will also be available at: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1396780

A replay of the call will be available from 12:30 p.m. (ET) on March 24th until 11:59 p.m. (ET) on March 31st. To access the replay, call 416-640-1917 or 877-289-8525, enter pass code number 21181457, and then press the number (#) sign. The replay will also be available on the Company’s web site at www.newflyer.com.

Adjusted EBITDA consists of earnings before interest, income taxes, depreciation, amortization and other non-cash charges adjusted for IPO related costs and certain other non-recurring charges as set out in the MD&A. Management believes Adjusted EBITDA and Distributable Cash (as defined below) are useful measures in evaluating the performance of the Company. Specifically, management believes that Adjusted EBITDA is the appropriate measure from which to make adjustments to determine "Distributable Cash" (being Adjusted EBITDA decreased for maintenance capital expenditures, principal payments on capital leases, interest on the Company's credit facility and capital leases, interest on NFI ULC's subordinated notes (not forming part of IDSs) and cash taxes. Adjusted EBITDA and Distributable Cash are not earnings measures recognized under GAAP and do not have standardized meanings as prescribed by GAAP. Therefore, Adjusted EBITDA and Distributable Cash may not be comparable to similar measures presented by other entities. Investors are cautioned that Adjusted EBITDA and Distributable Cash should not be construed as an alternative to net income or loss determined in accordance with GAAP as an indicator of New Flyer's performance or to cash flows from operating, investing and financing activities as measures of liquidity and cash flows.

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. These forward-looking statements are made as of the date of this press release and the Issuer and the Company assume no obligation to update or revise them to reflect new events or circumstances.

For further information:
Glenn Asham, Chief Financial Officer
Tel: (204) 224-1251
E-mail: investor@newflyer.com>