New Flyer to Open an Ontario Parts Distribution Center in 2011

“The Company’s strategy is to provide the ‘Best Bus Value and Support for Life’.  We have been expanding our aftermarket service model and with a number of customers in this region asking us to provide local support, opening an Ontario PDC is the next logical step in executing our strategy”, said Paul Soubry, New Flyer’s President and Chief Executive Officer.

New Flyer has supplied transit buses to this region for over forty years.  “There are currently over 9,300 transit buses operated by over 65 transit agencies within a 300 kilometer radius of the GTHA (from Ottawa to Detroit), of which nearly one-third were manufactured by New Flyer”, said Hans Peper, the Company’s Executive Vice President, Customer Services.  “Establishing a PDC in the region is expected to improve New Flyer’s response time for service parts, enhance parts availability and fill rates, and to enable the Company to better support its customers in the areas of supply and inventory services.”

The Ontario Parts Distribution Center will become the fourth in the New Flyer PDC network.  The Company maintains a PDC in Winnipeg, MB; a second was established in Erlanger, KY in 2008; and a third opened in Fresno, CA in 2009.  Mr. Peper commented further, “With the continued growth in the number of New Flyer buses in service, adding this PDC is critical to our plan for ongoing improvement of our customer support.”  This follows on the successful launch and implementation of a Customer Service and Overhaul Center that New Flyer established in Arnprior, ON in 2010.

New Flyer plans to redistribute some inventory from Winnipeg to the Ontario PDC to be closer to its customer base in the region.  The Ontario PDC will carry a wide assortment of parts for New Flyer buses and other common makes and models of buses. The Company is currently evaluating various locations in the region and plans to have the Ontario PDC operational in 2011.

About New Flyer

New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States. The Company’s three manufacturing facilities — in Winnipeg, MB, St. Cloud, MN and Crookston, MN – are all ISO 9001, ISO 14001 and OHSAS 18001 certified.  The Company currently operates three parts distribution centers in Winnipeg, MB, Erlanger, KY and Fresno, CA.

During 2010, New Flyer’s footprint expanded in three key locations.  Service centers were added in Arnprior, ON and in New York City as part of the Company’s strategic focus on offering ‘Best Bus Value and Support for Life’.  In addition, New Flyer acquired TCB Enterprises, LLC of Elkhart, IN.  TCB is now operated as an indirect subsidiary of New Flyer and is a high-quality manufacturer and supplier of transit interior lighting and stanchions.

With a skilled workforce of over 2,000 employees, New Flyer is a technology leader, 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 hybrid vehicles.  All products are supported with an industry-leading, comprehensive parts and service network. The Company’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 and economic conditions of and funding availability for transit agencies to purchase buses, parts and services 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