New Flyer Receives Bus Orders Valued at over US $1 Billion

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, including firm orders and options, over the last three months for up to 1,482 buses (2,412 equivalent production units or "EUs") for a combined value of US $1.004 Billion. Of these orders, 1,294 buses (2,224 EUs) are new orders and 188 buses (188 EUs) are exercised options. These orders, when combined with previously reported orders, bring the total number of buses ordered to date in 2008 to 4,815 (6,690 EUs) representing a total of US $2.78 billion in sales.

"We are extremely pleased that our unwavering strategic focus on new product development, vehicle reliability and comprehensive aftermarket support continues to drive increased share of the heavy-duty bus market in the US and Canada," said John Marinucci, President and CEO of New Flyer.

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

The largest of these orders is from Chicago Transit Authority ("CTA") in Chicago, IL. The CTA Board of Directors has approved the order of up to 900 60-foot diesel-electric hybrid buses (total firm orders and options). CTA has previously ordered a total of 1,258 buses from New Flyer since 2002 including 1,050 40' diesel and hybrid and 208 60' hybrid buses.

Other bus orders recently awarded to New Flyer include:

New Flyer's order backlog as of the end of November 2008 was 9,923 EUs, which represents an increase of 43% in comparison to the 6,916 EUs in backlog at January 1, 2008. The value of the order backlog as of the end of November 2008 of US $4.18 billion has increased by 50% compared to the US $2.8 billion backlog at the start of 2008. Given current market conditions, management believes that material deferrals or cancellations of existing orders are unlikely, and the company is pleased to report that less than five percent of all available options for 2008 have expired unexercised.

"Due to the substantial firm backlog, planned bus production will increase by 14.1% over 2008 levels," said Marinucci. "Transit industry demand remains robust due to significant increases in transit ridership and the market shift to environmentally-friendly vehicles and higher-capacity, more efficient articulated buses."

Currently, there are a total of 8,684 EUs in the industry order pipeline for heavy-duty transit buses for 2008; these include bids that have been submitted awaiting award, bids currently in process and anticipated new bid activity to the end of the year. At this stage, New Flyer cannot predict what percentage of this bid activity will result in awarded orders.

NOTE: All dollar amounts are stated in US currency based on an exchange rate of US $1.00 = Cdn $1.25 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 2,400 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.

SOURCE: New Flyer Industries Inc.

New Flyer Industries Inc., Glenn Asham, Chief Financial Officer, Tel: (204) 224-1251