John Marinucci, CEO of New Flyer Industries Limited, said, “This is exciting news for New Flyer. KPS Special Situations Fund specialize in turning around struggling businesses and typically do not hold assets after the turnaround has been accomplished. Due to New Flyer’s excellent operating and financial performance since KPS purchased the company, KPS has decided to exit, a reflection of the exceptional efforts of all of New Flyer’s employees. Premier equity firms Harvest Partners and Lightyear Capital, recognizing the potential of our business to continue this success in the future, has purchased the company. We are very pleased that New Flyer, in partnership with KPS, our founder Jan den Oudsten, and with the support of Premier Doer and the Province of Manitoba, has generated such a positive outcome.”

The skilled workforce at New Flyer, in conjunction with the Manitoba Development Corporation, the Communications Workers of America (CWA), the Canadian Autoworkers Union (CAW) and the company’s key suppliers, have worked closely to turn New Flyer into a strong franchise with excellent prospects for the future.

The acquisition by Harvest and Lightyear represents a change in ownership but not a change in leadership, direction and operation of the company. New Flyer’s senior management team, led by President and Chief Executive Officer John Marinucci, will continue to lead the company and maintain a significant ownership in New Flyer. Mr. Marinucci further stated, “We intend to make the transition in ownership as seamless as possible and wish to convey to each and every employee that operations will remain unchanged. The Company will continue to run as you have come to expect and management is looking forward to our new working relationship with Harvest Partners and Lightyear Capital.”

Ira Kleinman, Senior Managing Director at Harvest Partners, stated, “We enthusiastically welcome New Flyer into our portfolio of companies. The company is a market leader and has a demonstrated history of superior product offerings, customer service and technological innovation. We look forward to partnering with John Marinucci and the company’s experienced management team in continuing to expand the New Flyer franchise.”

Donald B. Marron, Lightyear Capital’s Chairman and Chief Executive Officer, added, “John Marinucci and his team have proven their strategic vision and ability to increase shareholder value through their successful restructuring efforts over the past 18 months. We are fortunate to be able to partner with Harvest to assist New Flyer as it continues to build its business and capitalize on the competitive dynamics in the heavy duty transit bus industry.”

David Shapiro, a managing principle of KPS, credited the management and employees of New Flyer who successfully implemented a dramatic business turnaround over the last two years. “New Flyer is now clearly positioned as the leading bus manufacturer in North America,” Mr. Shapiro said. “Successful turnarounds are at the core of the KPS investment strategy.”

Jan den Oudsten, founder of New Flyer, has sold his interests in the company and will take this opportunity to pursue other interests.

About New Flyer
New Flyer Industries (www.newflyer.com) is North America’s largest manufacturer of transit buses with sales of over CDN $750 million and a skilled workforce of over 1950 employees. It is headquartered in Winnipeg, Manitoba, Canada, with additional production facilities in St. Cloud and Crookston, Minnesota. New Flyer is a technology leader in the heavy duty transit market with innovative firsts such as low floor buses, programmable logic control electrical systems and articulated high and low floor buses. In addition to these innovative solutions, the company offers the deepest and broadest product line in the industry, coupled with drive systems powered by clean diesel, LNG, CNG and electric trolley. New Flyer also produces gasoline and diesel-electric hybrid vehicles to address ever growing emission and fuel conservation concerns. All of New Flyer’s quality and reliable products are supported with a superior turnkey aftermarket service network.

About Harvest Partners, Inc.
Founded in 1981, Harvest Partners (www.harvpart.com) has approximately $1 billion of invested and committed capital under management, including its most recent $558 million fund, Harvest Partners IV, L.P. Harvest focuses on management buyouts and growth financings of profitable, medium-sized manufacturing, specialty service and value-added distribution businesses, with a particular emphasis on multinational transactions. Harvest has significant additional capital available through its limited partners, which include numerous U.S., European and Asian industrial corporations and financial institutions.

About Lightyear Capital
Lightyear Capital, LLC (www.lycap.com) is a New York-based private equity investment firm that manages approximately $2 billion in assets, including The Lightyear Fund, L.P., a $750 million private equity fund. The Lightyear Fund invests in leveraged buyouts, recapitalizations, and growth capital opportunities in financial services and other select industries. Lightyear’s approach to investing centers on partnering with skilled management teams who lead quality companies.