Winnipeg, Manitoba, Canada; January 6, 2006; New Flyer of America Inc., a subsidiary of New Flyer Industries Inc. (TSX:NFI.UN), is pleased to announce the ratification of a new five-year agreement with its Crookston, MN-based bargaining unit, Communications Workers of America (CWA). This agreement, first tentatively reached on December 8, is effective January 1, 2006 through December 31, 2010 and replaces a previous, three-year agreement.

Janice Harper, New Flyer’s Director of Human Resources, said, "We are pleased with the outcome of this negotiation and believe the agreement represents the continuation of the successful partnership of New Flyer and CWA, benefiting the Company, the employees and the Crookston community."

The five-year contract:

• Provides for annual wage increases (2% in 2006, 3% in 2007, 3% in 2008, 3.5% in 2009 and 4% in 2010)
• Maintains existing health benefits on a co-share basis
• Maintains dental and pension benefits
• Expires December 31, 2010

"Due to the excellent, highly-competent and flexible workforce at our Crookston facility, we have been able to commit to a market-competitive, long-term collective bargaining agreement," said John Marinucci, President and CEO of New Flyer. "In July, we demonstrated our commitment to the Crookston operation and the community by purchasing the manufacturing facility. Today’s agreement further reinforces our dedication and support to the people of this community."

This press release may contain forward-looking statements relating to expected future events and financial and operating results that involve risks and uncertainties. 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 risks and uncertainties detailed in the prospectus filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, New Flyer 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.