CAW Votes to Approve Possible Strike Action

Winnipeg, Manitoba, Canada; March 20, 2006; New Flyer Industries Inc. (TSX:NFI.UN) announced today that the Canadian Auto Workers collective bargaining unit at its subsidiary’s Winnipeg, Manitoba plant voted on Saturday March 18, 2006 to approve possible strike action at the facility.

The current collective bargaining agreement expires at midnight on March 31, 2006. The Company and the union are continuing negotiations toward a new collective agreement. Should the negotiations not be successful, the union would be in a position to withdraw labor effective 12:01 a.m. on Saturday April 1, 2006.

In the event of a strike at the Winnipeg plant, New Flyer will continue to manufacture and deliver buses to its customers from its Crookston, Minnesota and St. Cloud, Minnesota manufacturing 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 1800 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 or by contacting Amy Miller, Director of Marketing, at (204) 224-6613.

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 prospectus 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.