New Flyer and CAW Cease Negotiations

Winnipeg, Manitoba, Canada; April 21, 2006; New Flyer Industries Inc. (TSX:NFI.UN) announced today that late last night, after one day of discussions, the Company and the Canadian Auto Workers (CAW) collective bargaining unit at the Company’s Winnipeg facility mutually decided to discontinue negotiations. No further talks have been scheduled by the parties.

The previous collective bargaining agreement with the CAW unit expired at midnight on March 31, 2006, and the members of the CAW collective bargaining unit walked out on strike on April 5, 2006.

New Flyer is continuing to transfer its bus shell operations of its Winnipeg plant to its Crookston, Minnesota and St. Cloud, Minnesota manufacturing facilities and continues to manufacture and deliver buses to its customers from those facilities.

The Winnipeg plant’s unionized workforce represents approximately 37 percent of New Flyer’s total workforce in the US and Canada.

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.

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