A New Player in the Quebec Public Transportation Market: Transit Now Benefitting From the State-of-the-Art Xcelsior Buses

MONTREAL, March 26, 2012 /CNW Telbec/ – (TSX: NFI NFI.UN) In June 2011, New Flyer Industries Canada ULC, an operating subsidiary of Winnipeg-based New Flyer Industries Inc. (“New Flyer” or the “Company”), in partnership with A. Girardin inc. (“Girardin”), was selected to supply up to 27 heavy-duty transit buses for the C.I.T. Sorel-Varennes, to be operated by TransBus. The first order in this contract was for 12 40-foot low-floor Xcelsior buses that were delivered on budget and schedule, and have been successfully operating on the city’s transit network since January 2012. Girardin and New Flyer are pleased to announce that TransBus has subsequently exercised options for five additional Xcelsior buses for delivery in April 2012.

Under this agreement, New Flyer is delivering the latest-generation 40-foot Xcelsior model buses, powered by clean, efficient diesel engines. A. Girardin Inc. of Drummondville, QC provides local pre-delivery inspection services, field support, training and parts support.

“We are thrilled to partner with Girardin and proud to provide Transbus and C.I.T Sorel-Varennes with the latest-generation and best-value bus as a viable alternative in public transportation in Quebec,” said Paul Soubry, New Flyer’s president and chief executive officer. “It’s a compliment to our quality and our product to have Transbus place a follow-on order, and we look forward to making the Xcelsior available to other communities in Quebec. So far, the Quebec market has been dominated almost exclusively by a single player; our arrival in this market will translate into savings for taxpayers. Together, New Flyer and Girardin can bring enhanced value to transit operators.”

“The CIT Sorel-Varennes and the TransBus Group would probably have been unable to start the service, as planned on January 1st, with the same efficiency had it not been for the close cooperation of Girardin. Indeed, the service we received and especially the dedication deployed exceeded the simple client-provider relationship,” said Stéphane Tremblay, President and CEO of TransBus. “In regards to the new New Flyer vehicles, mechanical reliability as well as more than favourable comments from customers concerning the comfort and appearance of these new buses on Quebec’s roads, have also greatly facilitated the task of launching the new fleet. We are very satisfied with the decision to select New Flyer’s Xcelsior bus,” he added.

New Flyer, the leading manufacturer of heavy-duty transit buses in Canada and the United States, and its strategic partner in Quebec, Girardin, are proud to make inroads into the Quebec market and confident that many other communities will follow and opt for this value-added transit alternative. The two companies entered into a distribution agreement in May 2011. Girardin, a manufacturer of school and shuttle buses and distributor for several other brands of medium-duty buses, has been appointed as New Flyer’s exclusive distributor of transit buses in Quebec and to a range of private bus operators across Canada.

“The agreement between New Flyer and Girardin is already showing results and enables us to offer the most complete line of high-end transit buses, an innovative and credible alternative, based on a focused partnership with proven local support and the lowest operating cost , for transit users and the tax payer,” said Dave Girardin, president and CEO of Girardin. “The contract in Sorel-Varennes is just a first step in reaching new heights in a strong segment of this market, just as we had anticipated when we established our alliance with New Flyer.”

“We are confident that the benefits of this high-quality bus, with its lightweight design, robust structure, enhanced styling and passenger experience, unique maintenance features as well as a low operating cost profile, will set new standards and become the most competitive option for Quebec transit operators,” concluded Mr. Soubry.
About New Flyer New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States. 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, electric trolley, energy-efficient diesel-electric hybrid as well as hydrogen fuel cells. All products are supported by an industry-leading, comprehensive parts and service network. The Company’s common shares trade under the symbol NFI and income deposit securities are traded under the symbol NFI.UN, both on the Toronto Stock Exchange. Further information is available on New Flyer’s website, at www.www.newflyer.com.

About Girardin

For more than 50 years, Girardin has been a school-bus distributor serving Quebec, Ontario and the Atlantic provinces and has been the official Blue Bird school-bus distributor for more than 45 years. Girardin also distributes the MB and G5 Series Minibuses built by Microbird Corporation. Today, Girardin holds a dominant position in the Quebec school-bus market as well as one of the leading positions in the commercial and specialized vehicle market. Further information is available on Girardin’s web site, at www.girardinbluebird.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 to exercise options 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:
Caroline Martel at 514-843-2313.
[email protected]