New Flyer Receives 845 Bus Orders Valued at US $484 Million

October 14, 2008

New Flyer Industries Inc. (TSX:NFI.UN) (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit vehicles in Canada and the United States, announced today that it has received orders over the last three months for up to 845 buses (1,162 equivalent production units or “EUs”) for a combined value of US $484 million. Of these orders, 584 buses (784 EUs) are new orders and 261 (378 EUs) are exercised options. These orders, when combined with previously-reported orders, bring the total number of buses ordered in 2008 to 3,332 (4,278 EUs) for a total of US $1.78 billion in sales.

These orders are for a variety of vehicle configurations, including 35-, 40- and 60-foot buses with clean diesel, hybrid, and compressed natural gas (CNG) propulsion systems.

Omnitrans in San Bernardino, CA has ordered up to 274 40-foot CNG buses (total firm orders and options). With this order, Omnitrans has ordered a total 431 CNG buses from New Flyer making it one of the largest natural gas fleets in North America.

Other bus orders recently awarded to New Flyer include:

ABQ Ride in Albuquerque, NM has ordered six 60-foot diesel hybrid buses (12 EUs) with options for 94 additional buses (188 EUs) and 32 40-foot diesel hybrid buses with options for 68 additional buses
Chicago Transit Authority in Chicago, IL has exercised options for 58 60-foot diesel hybrid buses (116 EUs)
King County Metro Board of Directors in Seattle, WA has approved additional options for 36 60-foot diesel hybrid buses (72 EUs)
Winnipeg Transit in Winnipeg, MB has exercised options for 33 40-foot diesel buses
Southwest Ohio Regional Transit Authority in Cincinnati, OH has exercised options for 32 40-foot diesel buses
Other new contracts and exercised options total 205 buses (328 EUs).

New Flyer’s backlog as of the end of September 2008 was 7,975 EUs, which represents an increase of 15% in comparison to the 6,916 EUs in backlog at January 1, 2008. The value of the order backlog as of the end of September 2008 of US $3.4 billion has increased by 20% compared to the US $2.8 billion backlog at the start of 2008. The portion of firm orders included in the backlog is US $1.2 billion as of the end of September 2008, consistent with the US $1.2 billion amount at January 1, 2008.

NOTE: All dollar amounts are stated in US currency based on an exchange rate of US $1.00 = Cdn $1.03 to calculate the value of the Canadian contracts in this release.

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 2,300 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

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