Inspection Unit to Hold Ratification Vote on New Collective Agreement

Winnipeg, Manitoba, Canada; May 25, 2006; New Flyer Industries Inc. (TSX:NFI.UN) announced today that the Company and the Canadian Auto Workers (CAW) Inspection bargaining unit at the Company’s Winnipeg facility reached a tentative new collective bargaining agreement late yesterday afternoon. The previous collective bargaining agreement with this CAW unit expired at midnight on March 31, 2006, and these employees have been working without an agreement since that date. The Inspection Unit was not involved in the recent labour dispute at New Flyer’s Winnipeg facility which ended on April 30, 2006, involving the CAW main production bargaining unit. During that labour dispute, the Company and the Inspection Unit bargaining committee agreed to place negotiations on hold until an agreement was reached with the main bargaining unit.

The Inspection Unit bargaining committee announced that it will recommend the proposed new collective bargaining agreement to its members at a meeting on Monday, May 29, 2006, at which meeting the members will hold a ratification vote on the new agreement.

The Winnipeg Inspection Unit unionized workforce represents 26 employees which is approximately 1.4 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 website at www.newflyer.com.

Forward-Looking Statements

This press release contains forward-looking statements relating to expected future events and financial and operating results of NFI 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, including, but not limited to, the risks and uncertainties detailed in the public filings made with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, NFI 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