New Flyer Receives Firm Orders for 441 Buses Totalling US $156.9 Million

Winnipeg, Manitoba, Canada; May 18, 2006; New Flyer Industries Inc. (TSX:NFI.UN), the leading manufacturer of heavy-duty transit vehicles in Canada and the United States, has been awarded firm bus orders for 441 buses, representing approximately US $156.9 million in revenue.

Chicago Transit Authority (CTA) in Chicago, Illinois, has exercised options from its November 2004 contract with New Flyer for 185 40-foot, clean-diesel, stainless steel buses for a contract award of approximately US $62.8 million. These option orders, together with the existing contract with New Flyer for 265 New Flyer buses, will provide New Flyer with a significant presence in Chicago.

The Board of Directors for Orange County Transportation Authority (OCTA) in Orange, California, has announced that it will amend the contract awarded to New Flyer in September, 2005 by increasing the base order of 50 40-foot compressed natural gas (CNG) buses by 249 buses, having a value of US $91.6 million. As a result of this amendment, the options under this bus contract have been reduced from 377 buses to 128 buses. With this firm base order of 299 CNG buses, a substantial portion of OCTA’s fleet will consist of New Flyer buses.

Roaring Fork Transportation Authority (RFTA), in Aspen, Colorado, has ordered seven 40-foot diesel Invero buses for a contract value of US $2.5 million. This new firm bus order will bring the total Invero buses in RFTA’s fleet to 24 buses.

"We appreciate the continued confidence that these customers have placed in New Flyer by awarding the Company with repeat purchases of heavy-duty transit buses," said John Marinucci, President and CEO of New Flyer. "Consistent with the trend reported in the first quarter of 2006 and coupled with New Flyer’s order backlog of approximately $2.0 billion, these firm bus orders are a continuation of the strong growth New Flyer has experienced in its firm bus order position this year."

The Company expects that these firm orders, together with the other orders announced by the Company this year, will continue to expand New Flyer’s growing installed bus base in Canada and the United States and will contribute to further growth in New Flyer’s Aftermarket Operations, which provides parts, training, publications and field service to customers.

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 and New Flyer Industries Canada ULC ("NFI ULC") that involve risks and uncertainties. Words such as "believes", "expects", "anticipates", "plans", "intends", "projects", "estimates" and similar expressions are intended to identify forward-looking statements. 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 and NFI ULC disclaim 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:
Glenn Asham, Chief Financial Officer
Phone: (204) 224-1251