Winnipeg, Manitoba, Canada − September 21, 2007

(TSX:NFI.UN) New Flyer Industries Inc. and New Flyer Industries Canada ULC (together, the “Company” or “New Flyer”) advised that the Federal Transit Administration (the “FTA”) announced in the United States Federal Register yesterday that certain changes to the Buy America rules were being implemented, effective October 22, 2007.  The changes include amendments to the “final assembly” requirements which could potentially have a material adverse effect on New Flyer’s operations and financial results.  Management believes that the new definition of “final assembly” could also adversely affect the majority of other transit bus manufacturers who sell to U.S. customers.

The Company is in the process of seeking clarification of the rule changes from the FTA given that the changes contradict the FTA’s own commentary that accompanied the rule changes and given that the changes had been previously strenuously opposed by numerous manufacturers, suppliers and other Canadian and U.S. participants in the transportation manufacturing industry.  The Company is also in the process of assessing the potential impact of the new rules on its operations.

New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada and a leading provider of aftermarket services.  New Flyer has the broadest range of products in the heavy-duty transit bus industry and provides its products and services to the majority of the largest transit authorities in North America.

Forward-Looking Statements

This press release contains "forward-looking statements", which reflect the expectations of management regarding the Company's future growth, results of operations, performance and business prospects and opportunities. The words "believes", "anticipates", "plans", "expects", "intends", "projects", "estimates" and similar expressions are intended to identify forward-looking statements.  These forward-looking statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release.  Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved.  Such differences may be caused by factors which include, but are not limited to, competition in the heavy-duty transit bus industry, availability of funding to the Company’s customers at current levels or at all, material losses and costs may be incurred as a result of product warranty costs, material losses and costs may be incurred as a result of product liability claims, the Company’s success depends on a limited number of key executives who the Company may not be able to adequately replace in the event that they leave the Company, the absence of fixed term customer contracts and the termination of contracts by customers for convenience, the current "Buy-America" legislation may change and/or become more onerous, production delays may result in liquidated damages under the Company’s contracts with its customers, currency fluctuations could adversely affect the Company’s financial results or competitive position in the industry, the Company may not be able to maintain performance bonds or letters of credit required by its contracts, third party debt service obligations may have important consequences to the Company, interest rates could change substantially and materially impact the Company’s profitability, the dependence on limited sources of supply and the Company’s profitability and performance can be adversely affected by increases in raw material and component costs. The Company cautions that this list of factors is not exhaustive. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities and are available on SEDAR at www.sedar.com.

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. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances.

For further information, please contact:
New Flyer Industries Inc.
John Marinucci
President and Chief Executive Officer
Tel: 204-224-1251