New Flyer Announces Union Ratification of New Collective Agreement

Winnipeg, Manitoba, Canada; April 30, 2006; New Flyer Industries Inc. (TSX:NFI.UN) announced today that the members of the Canadian Auto Workers (CAW) collective bargaining unit at the Company’s Winnipeg facility ratified a new collective bargaining agreement. This new three-year contract will expire on March 31, 2009 and replaces the previous three-year agreement that expired on March 31, 2006. The CAW members will return to work from a strike that began on April 5, 2006.

"The new collective agreement provides key changes in management rights that significantly improves the Company’s ability to rationalize and streamline the Canadian bus operations to help achieve increased productivity levels to equal those of New Flyer’s US bus manufacturing facilities in Crookston and St. Cloud, Minnesota," said John Marinucci, New Flyer’s President and CEO.

The new agreement also provides an increase in wages of sixty cents a year for each of the three years of the contract (this represents a 9.2% increase over the life of the agreement). The collective agreement also provides for annual increases in the employees’ defined benefits pension plan, and includes financial incentives for early retirement at age 62.

Janice Harper, Director of Human Resources at New Flyer, expressed the Company’s appreciation for the support received from all of the Company’s salaried employees and suppliers during the strike and said that the Company is, "especially appreciative of the support received from its US production employees in assisting the Company in minimizing the impact of the strike on New Flyer’s customers and suppliers."

In order to recover all losses to production experienced at New Flyer’s Winnipeg facility, the Company will maintain the increase in production levels achieved at its St. Cloud facility during the strike that resulted from the transfer of the bus shell operations from Winnipeg. The Company will begin to phase in the Winnipeg labour force over the next week in its efforts to return the Winnipeg facility to pre-strike production levels.

About New Flyer

New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States. 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 1,800 employees, New Flyer is a technology leader in the heavy-duty transit market, 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 of New Flyer’s products are supported by 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 and at www.sedar.com.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results 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 disclaims 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:

Janice Harper, Director, Human Resources
Phone: (204) 224-1251