WINNIPEG, CANADA, December 18, 2008

The Board of Directors of New Flyer Industries Inc. (TSX: NFI.UN) (“New Flyer" or the "Company”) today announced the appointment of Paul Soubry as the Company’s next President and Chief Executive Officer, effective January 19, 2009. He will succeed John Marinucci who is retiring from that role effective the same date, and will continue as a member of the Company’s Board of Directors.  Mr. Marinucci will remain as a senior executive with New Flyer until the end of March, 2009 in order to help manage the transition process.

Soubry, 45, is an experienced chief executive officer who has deep knowledge and operational expertise in the transportation maintenance and services sector. Mr. Soubry previously served with StandardAero as President and CEO from 2007 to August of 2008, as President and COO from 2005 to 2007 and in other senior executive capacities from 1991 through 2005. StandardAero is one of the largest independent aircraft maintenance, repair and overhaul businesses in the world, with approximately US$1.4 billion of annual revenues. 

Brian Tobin, Chairman of New Flyer's Board of Directors, said “We’re delighted to have secured someone of Paul’s stature and experience as our next President and CEO.  This appointment reflects our Board’s focus on succession planning and we are extremely pleased with the result. Paul has a demonstrated track record in managing complex customer and supplier relationships and has shown a proven commitment to operational efficiency, customer service and productivity. During his 24 years of prior employment with StandardAero, that company grew from US$100 million in sales and 500 employees to over US$1.4 billion in sales and over 4,250 employees. In his new role, Paul will continue the execution of our proven and successful strategy and enhance the Company’s relationships with its customers, suppliers, securityholders and employees across Canada and the United States. Our shared goal is to continue to build on  New Flyer’s position as the leading manufacturer of heavy-duty transit vehicles in Canada and the United States.”

Tobin added that, “We are grateful for the important contribution that John Marinucci has made to New Flyer during the seven years he has led the Company. He and the management team he recruited turned the business around in 2002/2003. He has developed and driven our current business strategy, guided us through our IPO in 2005 and grown the business from US $342.3 million of annual revenue and deliveries of 940 equivalent units of production for fiscal 2002 to US$975.2 million of annual revenue and deliveries of 2,187 equivalent production units over the last twelve months ended September 30, 2008. Adjusted EBITDA during that same period increased fourfold to US$101.6 million. John worked closely with the Board in identifying Paul Soubry as the right person to succeed him at this time. We are pleased that John has accepted the Board’s invitation to continue as a member of our Board of Directors. “

“This is about getting the right person for the long term” said  Marinucci, and “it is about continuing to build on the success that New Flyer has achieved to date. Paul has established himself as a strong leader with a demonstrated record of growing a business profitably while retaining a strong sense of community and employee morale within the organization. These features are at the core of New Flyer’s existing strategy. I am very pleased with the selection of Paul as our next CEO.  I am departing from New Flyer at this time to be with my family in Ontario and to have a more balanced lifestyle. I am proud of the success that New Flyer has achieved and I continue to have full confidence in the board and the management team.”

Paul Soubry said that “I am looking forward working with a first class organization like New Flyer and leading its dedicated team of employees in Canada and the United States. Together we can continue to grow and strengthen the business for the benefit of our customers, employees and securityholders.”

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 New Flyer’s Management’s Discussion & Analysis filed with Canadian securities regulators. Management believes Adjusted EBITDA is a useful measure in evaluating the performance of the Company. Adjusted EBITDA is not an earnings measure recognized under Canadian generally accepted accounting principles (“GAAP”) and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other entities. Investors are cautioned that Adjusted EBITDA 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 the United States and Canada. 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 2,400 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 gasoline-electric and diesel-electric hybrid vehicles. All products are supported with an industry-leading, comprehensive parts and service network. New Flyer’s Income Deposit Securities are traded on the Toronto Stock Exchange under the symbol NFI.UN. Further information is available on Company’s web site at 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 and New Flyer Industries Canada ULC (“NFI ULC”) 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 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, New Flyer and NFI ULC disclaim 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