Press Releases

California Climate Investments Provides Funding to Deploy 20 New Flyer Fuel Cell Electric Transit Buses

St Cloud, Minnesota – February 13, 2017: (TSX: NFI) (TSX: NFI.DB.U) New Flyer of America Inc., a subsidiary of New Flyer Industries Inc. (“New Flyer” or the “Company”), the largest transit bus and motor coach manufacturer and parts distributor in North America, announced today that it will supply 20 fuel cell electric 40-foot Xcelsior® XHE40 transit buses to transit agencies in California.

New Flyer is a partner of the Fuel Cell Electric Bus Commercialization Consortium to deploy 20 fuel cell electric buses – 10 with Alameda-Contra Costa Transit District (AC Transit) and 10 with the Orange County Transportation Authority (OCTA).

The project is funded by the California Air Resources Board’s Low Carbon Transportation and Air Quality Improvement Program.  Program support also includes sponsorship from the Bay Area Air Quality Management District and South Coast Air Quality Management District. The Center for Transportation and Environment (CTE), a nonprofit member-based organization, is providing project management and oversight.

New Flyer, the market leader in zero-emission buses, is the only North American transit bus manufacturer offering all three types of zero-emission propulsion systems including: hydrogen fuel cell electric, battery-electric and trolley-electric buses. “We acknowledged early on in the development of zero emission buses that every operator and every mission profile is different which requires flexibility in propulsion and energy generation approaches” explained Wayne Joseph, President of New Flyer Transit Bus.  “Our response was to evolve our electrification road map providing choice to customers, but doing so on a proven heavy-duty transit bus platform – the New Flyer Xcelsior”.

Hydrogen has the potential to solve two major energy challenges in transportation: reducing dependence on petroleum and reducing pollution and greenhouse gas emissions.  The New Flyer Xcelsior® electric buses for this program will utilize fuel cells from Ballard Power Systems.  The fuel cell replaces an internal combustion engine by generating electricity to power an electric drive motors.  Fuel cell electric buses have operating ranges over 300 miles with zero tailpipe emissions and re-filling hydrogen can be accomplished in only a few minutes, without the need for overnight plug-in battery recharging.

Paul Smith, Executive Vice President of Sales, Marketing and Customer Programs of New Flyer noted, “The potential for hydrogen derived from renewable sources, like solar and wind, as an alternative fuel and zero-emission solution for public transit remains strong.  This important program provides New Flyer and our electric propulsion suppliers the production volume to gain efficiencies and drive costs down.”

After delivery of the fleet in 2018, New Flyer’s California-based Ontario, California Service Center and Fresno Parts Center teams will support the operation of the fuel cell electric buses into every day transit service.

Mr. Smith concluded: “New Flyer is very proud to partner with AC Transit and OCTA – both are leading transit agencies in Northern and Southern California respectively.  It’s an honor to have our zero-emission technology and innovation is helping California lead the nation in tackling climate change.”

This Fuel Cell Electric Bus Commercialization Consortium project is part of California Climate Investments, a statewide program that puts billions of cap-and-trade dollars to work reducing greenhouse gas emissions, strengthening the economy and improving public health and the environment — particularly in disadvantaged communities. The cap-and-trade program also creates a financial incentive for industries to invest in clean technologies and develop innovative ways to reduce pollution. California Climate Investments projects include affordable housing, renewable energy, public transportation, zero-emission vehicles, environmental restoration, more sustainable agriculture, recycling and much more. At least 35 percent of these investments are made in disadvantaged and low-income communities. For more information, visit https://arb.ca.gov/caclimateinvestments.

About The Company

The Company is the largest transit bus and motor coach manufacturer and parts distributor in North America with fabrication, manufacturing, distribution and service centers in Canada and the United States and employs approximately 5,000 team members.

Through its Canadian and U.S. subsidiaries, New Flyer Industries Canada ULC and New Flyer of America Inc., the Company is North America’s heavy-duty transit bus leader and offers the broadest transit bus product line (Xcelsior® and MiDi® models), incorporating the broadest range of drive systems available, including: clean diesel, natural gas, diesel-electric hybrid, electric-trolley and now battery-electric. New Flyer actively supports over 42,000 heavy-duty transit buses (New Flyer, NABI and Orion) currently in service.

Through its Canadian and U.S. subsidiaries, Motor Coach Industries Limited and Motor Coach Industries, Inc., the Company is North America’s leader in motor coaches, offering the MCI J4500,which is the industry’s best-selling intercity coach for 11 consecutive years, and the MCI D-Series, the industry`s best-selling coach line in North American motor coach history. MCI is also the exclusive distributor of Setra S417 and S407 in the United States and Canada. MCI actively supports over 28,000 motor coaches currently in service and offers 24-hour roadside assistance 365 days a year.

The Company also operates North America’s most comprehensive aftermarket parts organization providing support for all types of transit buses and motor coaches. All buses and coaches are supported by an industry-leading comprehensive warranty, service and support network.

Further information is available on the Company’s websites at www.www.newflyer.com and www.mcicoach.com.The common shares and convertible unsecured subordinated debentures of the Company are traded on the Toronto Stock Exchange under the symbols NFI and NFI.DB.U, respectively.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Company 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 customers to purchase buses and to purchase parts or services, there may be no sustained customer demand for this type of fuel cell electric buses, the expected benefits for customers operating this type of fuel cell electric bus may not be realized, customers may not exercise options to purchase additional buses, the ability of customers to suspend or terminate contracts for convenience 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, the Company 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:

Jon Koffman

Investor Relations

Tel: 204-224-6672