Lightyear Capital to Join as a Significant Investor

New York, NY - December 15, 2003 - Harvest Partners, Inc., a leading New York-based multinational private equity firm specializing in middle market investments, announced today that it has entered into definitive agreements to acquire New Flyer Industries Corp. (“New Flyer” or the “Company”), the largest manufacturer of heavy-duty transit buses in North America.

New Flyer’s senior management team, led by President and Chief Executive Officer John Marinucci, will continue to lead the Company and maintain a significant ownership in New Flyer.  Lightyear Capital, LLC, a New York-based private equity firm, will join Harvest in acquiring the Company from KPS Special Situations Funds. Harvest and Lightyear will contribute equity for the transaction through their respective partnerships, Harvest Partners IV, L.P. and The Lightyear Fund, L.P. The acquisition is expected to close in the first quarter of 2004. Other transaction details were not disclosed.

New Flyer, with headquarters in Winnipeg, Manitoba and production facilities in Crookston and St. Cloud, Minnesota, is the leading manufacturer and aftermarket service provider of heavy-duty transit buses in North America. With sales exceeding US$470 million, the Company offers the deepest and most diverse product mix in the industry, producing both low-floor and high-floor buses with a variety of standard and alternate fuel propulsion systems. Recognized for its industry-leading design and engineering, the Company serves many of the largest transit agencies in the United States and Canada.

Beginning in March 2002 and led by the existing management group, the Company executed a successful operational turnaround supported by KPS Special Situations Funds, the Company’s banks and surety providers, the Province of Manitoba, the Communications Worker of America (CWA), the Canadian Autoworkers Union (CAW) and the Company’s key suppliers.

Ira Kleinman, Senior Managing Director at Harvest Partners, stated, “We enthusiastically welcome New Flyer into our portfolio of companies. The company is a market leader and has a demonstrated history of superior product offerings, customer service and technological innovation. We look forward to partnering with John Marinucci and the company’s experienced management team in continuing to expand the New Flyer franchise.”

Donald B. Marron, Lightyear Capital’s Chairman and Chief Executive Officer, added, “John Marinucci and his team have proven their strategic vision and ability to increase shareholder value through their successful restructuring efforts over the past 18 months. We are fortunate to be able to partner with Harvest to assist New Flyer as it continues to build its business and capitalize on the competitive dynamics in the heavy duty transit bus industry.”

John Marinucci, President and Chief Executive Officer of New Flyer, said, “Our company has a long history and an excellent reputation in the transit bus market. We strive to ensure the highest level of quality in all of our products and services, and we are proud of our strong customer relationships, tradition of innovative engineering, and industry leading aftermarket service. We are confident that New Flyer and its employees will achieve continued success with our new partners.”

About Harvest Partners, Inc.
Founded in 1981, Harvest Partners (www.harvpart.com) has approximately $1 billion of invested and committed capital under management, including its most recent $558 million fund, Harvest Partners IV, L.P. Harvest focuses on management buyouts and growth financings of profitable, medium-sized manufacturing, specialty service and value-added distribution businesses, with a particular emphasis on multinational transactions. Harvest has significant additional capital available through its limited partners, which include numerous U.S., European and Asian industrial corporations and financial institutions.

About Lightyear Capital
Lightyear Capital, LLC (www.lycap.com) is a New York-based private equity investment firm that manages approximately $2 billion in assets, including The Lightyear Fund, L.P., a $750 million private equity fund. The Lightyear Fund invests in leveraged buyouts, recapitalizations, and growth capital opportunities in financial services and other select industries. Lightyear’s approach to investing centers on partnering with skilled management teams who lead quality companies.

About New Flyer Industries
New Flyer Industries (www.newflyer.com) is headquartered in Winnipeg, Manitoba and has two additional production facilities in St. Cloud and Crookston, Minnesota. The Company is the largest manufacturer of transit buses in North America. New Flyer’s innovative low-floor and articulated buses are operated by public transit authorities in New York, Los Angeles, Vancouver, Atlanta, Seattle and many other major cities in the United States and Canada. New Flyer has over 1,950 employees.