WINNIPEG, February 25, 2008 - New Flyer Industries Inc.

(TSX:NFI.UN) ("New Flyer" or the "Company"), the leading manufacturer of heavy-duty transit buses in Canada and the United States, today announced that it intends to release its 2007 financial results on Tuesday, March 18^th, 2008.

A conference call for analysts and interested listeners will also be held on Tuesday, March 18^th, 2008 at 4:30 p.m. (

A replay of the call will be available from 6:30 p.m. (ET) on March 18^th, 2008 to 11:59 p.m. on March 25^th, 2008. To access the replay, call 416-640-1917 or 877-289-8525, enter the pass code number 21264187, and then press the pound # sign. The replay will also be available on the Company’s website at www.newflyer.com.

Unless otherwise indicated all monetary amounts in this press release are expressed in U.S. dollars.

2007 was highlighted by very strong growth in bus order backlog. This approximate 60 percent increase in backlog along with the continued robust growth in the Company’s aftermarket operations has resulted in significantly increased revenue, Adjusted EBITDA, and Distributable Cash for the 52-week period ended December 30, 2007 (“Fiscal 2007”) compared to prior year results. The Company’s Fiscal 2007 financial statements have not yet been finalized and are currently undergoing audit.

Similarly, revenue and Adjusted EBITDA for the 13-week period ended December 30, 2007 (“2007 Q4”) increased substantially compared to the results for the 13-week period ended December 31, 2006 (“2006 Q4”).

The Company’s calculation of Distributable Cash for 2007 Q4 was adversely affected by increased provisions for withholding taxes and income taxes. These provisions are expected to increase New Flyer’s payout ratio from 71% reported for the 39-week period ended September 30, 2007 (“2007 YTD”) to an expected payout ratio of 76% for Fiscal 2007.

During 2007 Q4, the Company incurred withholding taxes of $2.1 million related to an inter-company dividend paid in December 2007. This withholding tax was incurred as a consequence of the payment of cross-border inter-corporate dividends that were required to fund dividend payments to holders of Income Deposit Securities issued by New Flyer and New Flyer Industries Canada ULC. The 2007 Q4 tax provision includes $0.4 million for withholding taxes which are expected to continue, on a quarterly basis, based on current distribution levels.

The Company’s calculation of Distributable Cash was also negatively impacted in 2007 Q4 as a consequence of the Company’s U.S. and Canadian dollar hedging arrangements. New Flyer’s operations generate excess Canadian dollars which New Flyer hedges through the purchase of forward foreign exchange contracts for U.S. dollars. In accordance with GAAP, these contracts were marked to market in the second and third quarters of 2007 which resulted in 2007 YTD unrealized foreign exchange losses of $6.1 million and an associated tax benefit of $2.2 million. This tax benefit reduced current income taxes payable and enhanced Distributable Cash by a like amount. In 2007 Q4 the foreign exchange contracts were settled at a loss which was offset by realized gains on excess Canadian dollars generated by operations. This results in no impact to Adjusted EBITDA as the Company effectively hedged its economic exposure. However, current taxes payable in 2007 Q4 were increased by $2.2 million with a related reduction in Distributable Cash.  

Non-GAAP Measures

Adjusted EBITDA consists of earnings before interest, income taxes, depreciation, amortization and other non-cash charges, adjusted for IPO related costs and certain other non-recurring charges as set out in the MD&A. Management believes Adjusted EBITDA and Distributable Cash (as defined below) are useful measures in evaluating the performance of the Company. “Distributable Cash” means cash flows from operations adjusted for changes in non-cash working capital items, and effect of foreign currency rate on cash and cash equivalents and increased for withholding taxes, defined benefit funding, distributions on Class B and Class C common shares, follow-on offering related costs, fair market value adjustment to inventory, fair market value adjustment to prepaid expenses, proceeds on sale of redundant assets, and interest on subordinated notes forming part of IDSs and decreased for defined benefit expense, maintenance capital expenditures, and principal payments on capital leases.  Adjusted EBITDA and Distributable Cash are not earnings measures recognized under GAAP and do not have standardized meanings as prescribed by GAAP.  Therefore, Adjusted EBITDA and Distributable Cash may not be comparable to similar measures presented by other entities.  Investors are cautioned that Adjusted EBITDA and Distributable Cash should not be construed as an alternative to net income or loss determined in accordance with GAAP as an indicator of New Flyer's performance or to cash flows from operating, investing and financing activities as measures of liquidity and cash flows.

About New Flyer

Forward-Looking Statements

Certain statements in this press release are "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.  A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.  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 issues, material losses and costs may be incurred as a result of product liability claims, changes in Canadian or United States tax legislation, 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, the Company's profitability and performance can be adversely affected by increases in raw material and component costs, and the availability of labour could have an impact on production levels.  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.

For further information:
Glenn Asham
Chief Financial Officer
Tel: (204) 224-1251
E-mail: investor@newflyer.com