Highlights:

• Record total order backlog of $3.4 billion increased by 20.3% compared to December 30, 2007.
  

• 2008 Q3 consolidated revenue of $255.2 million compared to 2007 Q3 consolidated revenue of $201.6 million. 2008 YTD consolidated revenue of $740.0 million compared to 2007 YTD consolidated revenue of $651.9 million.
  

• 2008 Q3 Adjusted EBITDA of $22.8 million compared to 2007 Q3 Adjusted EBITDA of $23.8 million. 2008 YTD Adjusted EBITDA of $75.7 million compared to 2007 YTD Adjusted EBITDA of $70.0 million.

• Increased bus deliveries of 583 equivalent units in 2008 Q3 compared to 466 equivalent units in 2007 Q3, which represents an increase of 25.1%. Equivalent units in work in process reduced by 9.1% during 2008 Q3.

• Continued growth of aftermarket operations resulted in 2008 Q3 revenue and Adjusted EBITDA increase of 8.6% and 9.4%, respectively, compared to 2007 Q3.

• 2008 Q3 Distributable Cash of C$15.7 million resulted in excess of C$1.8 million over distributions declared in 2008 Q3 resulting in a payout ratio of 88.5%. 2008 YTD Distributable Cash of C$53.6 million resulted in excess of C$12.9 million over distributions declared in 2008 YTD resulting in a payout ratio of 76.0%.

WINNIPEG, November 7, 2008 - New Flyer Industries Inc. (TSX:NFI.UN), the leading manufacturer of heavy-duty transit buses in Canada and the United States, today announced its results for the 13-week period ("2008 Q3") and for the 39-week period (“2008 YTD”) ended September 28, 2008. Full financial statements and Management's Discussion and Analysis (the "MD&A") are available at the Company's web site at: www.newflyer.com/index/financialreport. References in this press release to “New Flyer” or the “Company” are to New Flyer Holdings, Inc. (“NFL Holdings”) and its consolidated subsidiaries immediately prior to, and to New Flyer Industries Inc. (“NFI”) and its consolidated subsidiaries immediately following, the consummation of the transactions described in note 1 of the consolidated annual financial statements of NFI for the period ended December 30, 2007 under “July 12, 2007 transaction”. Unless otherwise indicated all monetary amounts in this press release are expressed in U.S. dollars.

The Company has maintained the increased bus production and delivery levels it achieved in the second quarter of 2008 which resulted in consolidated revenue for 2008 Q3 of $255.2 million, which represents an increase of 26.6% compared to consolidated revenue for the third quarter of 2007 (“2007 Q3”) of $201.6 million. Bus manufacturing revenue in 2008 Q3 of $232.1 million increased by 28.7% compared to bus manufacturing revenue of $180.4 million in 2007 Q3. Total bus deliveries in 2008 Q3 were 583 equivalent units, which represents a volume increase of 25.1% compared to 2007 Q3 deliveries of 466 equivalent units. The average price per equivalent unit delivered in 2008 Q3 was $398.1 thousand compared to $387.0 thousand in 2007 Q3, representing an increase of 2.9%. This increase is attributable to product sales mix and passing cost increases through to customers. 2008 Q3 aftermarket operations revenue of $23.1 million increased by 8.6% compared to $21.3 million in 2007 Q3. The continued growth in aftermarket operations is a result of increase in market share as New Flyer buses continue to represent a larger share of the active installed fleet in the combined United States and Canadian market. However, the Company experienced a slower growth rate as a result of lower U.S. market demand. 

Consolidated Adjusted EBITDA for 2008 Q3 totaled $22.8 million compared to $23.8 million in 2007 Q3, which represents a decrease of 4.1%. This decrease in consolidated Adjusted EBITDA is a result of lower margins related to a sales mix and higher manufacturing overhead costs on a per unit basis. 2008 Q3 bus manufacturing operations Adjusted EBITDA of $17.1 million decreased by 12.1% compared to bus manufacturing operations Adjusted EBITDA of $19.4 million in 2007 Q3. Profit margins between orders vary significantly due to factors such as order size and product type. As a result, Adjusted EBITDA from bus manufacturing operations per equivalent unit can be volatile due to sales mix on a quarterly basis and therefore a longer term view should be taken when comparing bus operation margins. Increased production levels and deliveries resulted in a 9.1% quarterly reduction of equivalent units in work in process. 2008 Q3 aftermarket operations Adjusted EBITDA of $5.0 million (21.7% of revenue) increased by 9.4% compared to $4.6 million (21.5% of revenue) in 2007 Q3.

The Company reported net earnings of $8.8 million in 2008 Q3 compared to a net loss of $20.4 million in 2007 Q3. With consolidated Adjusted EBITDA of $22.8 million in 2008 Q3 compared to $23.8 million in 2007 Q3, the increase in net earnings is a result of lower non-cash charges and reduced interest costs. In 2008 Q3, non-cash recoveries totaled $2.4 million compared to non-cash charges included in 2007 Q3 earnings of $25.7 million. This change in non-cash items included in earnings primarily related to fair value adjustments to assets and liabilities, unrealized foreign exchange gains, and amortization.

The Company generated Distributable Cash of C$15.7 million during 2008 Q3 and declared distributions of C$13.9 million, which represents a 2008 Q3 payout ratio of 88.5%. During 2007 Q3, the Company generated Distributable Cash of C$18.4 million and declared distributions of C$13.2 million, resulting in a payout ratio of 72.1%. The decrease in Excess Distributable Cash of C$ 3.3 million is primarily the result of higher current income taxes, lower interest income on cash balances and lower Adjusted EBITDA. The current income taxes were positively impacted in 2007 Q3 in the amount of C$1.7 million as a consequence of the Company’s

During 2008 YTD, New Flyer generated Distributable Cash of C$53.6 million and declared distributions of C$40.7 million, representing a payout ratio of 76.0%. In comparison, the 39-week period ended September 30, 2007 (“2007 YTD”) Distributable Cash and declared distributions were C$53.0 million and C$37.8 million, respectively, which represents a payout ratio of 71.3%.

Due to temporary increases in working capital requirements in 2008 Q3 which were only partially offset by $7.2 million net cash earnings from operations, the Company liquidity position went from $69.6 million as at June 29, 2008 to $41.1 million as at September 28, 2008. The September 28, 2008 liquidity position is comprised of cash balances of $1.1 million and a $40.0 million revolving credit facility, which was undrawn as at September 28, 2008. In comparison, the Company’s liquidity position as at December 30, 2007 was $65.3 million.

The total order backlog (including firm orders and options) of approximately $3.4 billion (representing 7,975 equivalent units) as at September 28, 2008 increased by 20.3% compared to the total order backlog of approximately $2.8 billion (representing 6,916 equivalent units) as at December 30, 2007. Based on the significant increase in order activity since late 2006, and the current robust bid activity in the U.S. heavy-duty transit bus market, management believes that the market demand will remain strong for the remainder of 2008 and into 2009 and that the Company’s solid product positioning will continue to grow market share.

During 2008 Q3 our customers awarded New Flyer firm orders of $167.3 million (2008 YTD  - $564.5 million) compared to 2007 Q3 awarded firm orders of $386.1 million (2007 YTD – $795.5 million), which represents a decrease of 56.7% (YTD decrease of 29.0%). Included in 2008 Q3 total firm bus orders are exercised options of $95.3 million (2008 YTD - $363.7 million) compared to exercised options of $81.1 million in 2007 Q3 (2007 YTD – $371.8 million). As a result of new order activity and deliveries during 2008 Q3, the firm order backlog as of September 28, 2008 is $1.2 billion, which represents 34.6% of the total backlog. The firm order backlog, which represents 2,533 equivalent units of production, provides the Company with the order visibility to efficiently plan production and supports the current and planned increases to production levels slated for the second half of 2008 and first half of 2009.

Pursuant to the September 2008 Offering, the Issuer issued 9,143,100 income deposit securities (“IDSs”). The IDSs were sold at a price of C$11.20 per IDS resulting in gross proceeds of approximately C$102.4 million. NFI ULC also sold, on a private placement basis, approximately C$5.0 million aggregate principal amount of Subordinated Notes not forming part of the IDSs (“Separate Subordinated Notes”). The Separate Subordinated Notes are identical in all respects to the Subordinated Notes represented by IDSs, and were issued pursuant to the same indenture. The Company used the net proceeds of the IDS issuance to redeem 2,098,654 Class B common shares of NFL Holdings (“Class B Shares”) and 8,210,820 Class C common shares of NFL Holdings (“Class C Shares”), being the remaining Class B Shares and Class C Shares held by Transit L.P. After giving effect to the September 2008 Offering and related transactions, NFI increased its ownership interest in NFL Holdings from an approximate 74.9% to an approximate 95.0% economic and voting interest of NFL Holdings, while management through New Flyer LLC maintained its approximate 5.0% economic and voting interest.

Conference Call

A conference call for analysts and interested listeners will be held on Monday, November 10th, at 9:00 a.m. (ET). The call-in number for listeners is 800-731-5774 or 416-644-3419. A live audio feed of the call will also be available at:

http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2453880

A replay of the call will be available from 11:00 a.m. (ET) on November 10th until 11:59 p.m. (ET) on November 17th. To access the replay, call 416-640-1917 or 877-289-8525, enter pass code number 21286972, followed by the pound sign (No.).

The replay will also be available on the Company's web site at www.newflyer.com.

Non-GAAP Measures

Adjusted EBITDA consists of earnings before interest, income taxes, depreciation, amortization and other non-cash charges, adjusted for certain costs related to offerings 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 increased for withholding taxes related to capital transactions, defined benefit funding, distributions on Class B and Class C common shares, costs related to offerings, 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 the IDSs and decreased for defined benefit expense, maintenance capital expenditures, fair market value adjustment to deferred revenue, fair market value adjustment to accounts payable and accrued liabilities 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

New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States. The Company's three facilities - in Winnipeg, MB, St. Cloud, MN and Crookston, MN - are all ISO 9001, ISO 14001 and OHSAS 18001 certified. With a skilled workforce of approximately 2,300 employees, New Flyer is a technology leader in the heavy-duty transit market, 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 gasoline-electric and diesel-electric hybrid vehicles. All of New Flyer's products are supported by an industry-leading, comprehensive parts and service network. The IDSs are listed on the Toronto Stock Exchange under the symbol NFI.UN.

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 existing contracts or obtain performance bonds and letters of credit required for new contracts, third party debt service obligations may have important consequences to the Company, the covenants contained in the senior credit facility and subordinated note indenture of New Flyer Industries Canada ULC could impact the ability of the Company to fund distributions and take certain other actions, interest rates could change substantially and materially impact the Company's profitability, the dependence on limited sources of supply, the possibility of negative investment returns in the Company’s pension plan, 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 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 assume no obligation to update or revise them to reflect new events or circumstances, except as required by applicable securities laws.

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