Press Releases

New Flyer Announces July Dividend and Cash Distribution

Winnipeg, Manitoba, Canada − July 16, 2012 − (TSX:NFI, TSX:NFI.UN, TSX:NFI.DB.U) New Flyer Industries Inc. (“New Flyer”) today declared a dividend on the common shares of New Flyer (the “Shares”), including those Shares held separately and those Shares held in the form of an income deposit security (“IDS”), in the amount of C$0.07167 per Share, which will be payable on August 15, 2012, to holders of record at the close of business on July 31, 2012.  The Shares that are held separately trade on the Toronto Stock Exchange (the “TSX”) under the symbol NFI and the Shares that are held in the form of an IDS trade on the TSX under the symbol NFI.UN.

The regular monthly cash interest payment of C$0.645 per C$55.30 principal amount of subordinated notes (the “Subordinated Notes”) of New Flyer Industries Canada ULC (“NFI ULC”) will also be paid on August 15, 2012 to holders of Subordinated Notes (including those held separately and those held in the form of an IDS) of record at the close of business on July 31, 2012.  As a result, holders of record of IDSs will receive a total distribution of C$0.7167 per IDS, representing a cash dividend of C$0.07167 per Share and an interest payment of C$0.645 per C$55.30 principal amount of Subordinated Notes for the period from July 1, 2012 to July 31, 2012.

The dividends on the Shares (including those Shares forming part of the IDSs) are designated as “eligible dividends” for purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation.

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 and electric trolley as well as energy-efficient diesel-electric hybrid vehicles.  All products are supported with an industry-leading, comprehensive parts and service network.  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 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, the covenants contained in NFI ULC’s senior credit facility and subordinated note indenture and the other risks and uncertainties detailed in the disclosure documents 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 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.

For further information, please contact:

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