New Flyer and the City of Ottawa Partner to Improve OC Transpo Service

New Flyer Industries Inc. (TSX:NFI.UN) (“New Flyer”), the leading manufacturer of heavy-duty transit buses in Canada and the United States, announced today the finalization of an agreement with the City of Ottawa, in which New Flyer will provide dedicated and local support to the OC Transpo bus fleet.

As part of this arrangement, New Flyer will open a service center in the National Capital area in early 2010 to provide bus warranty, technical and integrated supply chain services for the 700 New Flyer buses currently in operation by OC Transpo. The center is expected to employ approximately 12 employees on its opening.

New Flyer and the City of Ottawa have been discussing this partnership arrangement over the last months, and it combines current open matters with future opportunities.  “Establishing this arrangement demonstrates the commitment of both organizations to explore new opportunities to work together for the future, while improving the bus availability for OC Transpo,” said Paul Soubry, New Flyer’s President and CEO.  “It is part of New Flyer’s objective not only to deliver a world class bus, but to offer the best value for the life of the bus.”

The New Flyer Customer Services organization employs over 250 dedicated team members throughout Canada and the United States who provide a range of services to the operators of over 23,000 New Flyer buses that run on the streets each day.  These services range from the publishing of maintenance information to aftermarket parts supply, warranty, on-site service and training support.

About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada.  Among its several facilities located in Canada and the United States, New Flyer operates four production facilities — in Winnipeg, MB, St. Cloud, MN and Crookston, MN – which are all ISO 9001, ISO 14001 and OHSAS 18001 certified.  With a skilled workforce of over 2,000 employees, New Flyer is a technology leader, offering the broadest product line in the industry, including a variety of bus lengths and models, with drive systems powered by clean diesel, LNG, CNG and electric trolley as well as energy-efficient gasoline-electric and diesel-electric hybrid vehicles.  All products are supported with 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 New Flyer’s web site at www.www.newflyer.com.

Forward-Looking Statements 
This press release may contain forward-looking statements relating to expected future events and financial and operating results of New Flyer and New Flyer Industries Canada ULC (“NFI ULC”) that involve risks and uncertainties.  Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material.  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, availability of funding for bus purchases to customers at current levels or at all, the ability of customers to terminate bus purchase contracts for convenience or to not issue purchase orders for buses at all and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com.  Due to the potential impact of these factors, New Flyer 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, please contact:

New Flyer Industries Inc.
Glenn Asham
Chief Financial Officer
Tel: 204-224-1251