Winnipeg, Manitoba, Canada; May 29, 2006; New Flyer Industries Inc. (TSX:NFI.UN) announced today that the members of the Canadian Auto Workers (CAW) Inspection bargaining unit at the Company’s Winnipeg facility ratified a new collective bargaining agreement. This new three-year contract will expire on March 31, 2009 and replaces the previous three-year agreement that expired on March 31, 2006.

The new agreement provides an annual increase of 95 cents in the hourly wage for each year of the three-year contract (this represents a 13.6% increase over the duration of the agreement). The collective agreement also provides for a signing bonus of $350, annual increases in the employees’ defined benefits pension plan, financial incentives for early retirement at age 62 and improvements for the Company in certain management rights.

The Winnipeg Inspection Unit unionized workforce represents 26 employees, which is approximately 1.4 percent of New Flyer’s total workforce in the US and Canada.

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 1,800 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. 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 website at www.newflyer.com.

Forward-Looking Statements

This press release contains forward-looking statements relating to expected future events and financial and operating results of NFI 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, including, but not limited to, the risks and uncertainties detailed in the public filings made with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, NFI 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.

For further information:
Janice Harper
Director, Human Resources
Phone: (204) 224-1251