Federal Transit Administration maintains existing definition of "final assembly" - No impact to New Flyer's operations

    WINNIPEG, Sept. 26 /CNW/ - (TSX: NFI.UN) Further to the two releases
issued on September 21, 2007, New Flyer Industries Inc. and New Flyer
Industries Canada ULC (together, the "Company" or "New Flyer") advises that
the Federal Transit Administration (the "FTA") has filed a correction with the
United States Office of the Federal Register amending the rule change that it
made to the Buy America definition of "final assembly" on September 20, 2007.
This correction will be published in the U.S. Federal Register on Friday
September 28, 2007, and will be effective on October 22, 2007.
    The incorrect rule which was inadvertently issued by the FTA on September
20, 2007, may have had a material adverse effect on the Company's financial
results. The corrected rule however, codifies the existing "final assembly"
definition set out in the "Dear Colleague letter" issued by the FTA on March
18, 1997, and under which New Flyer has since been producing buses. As a
result, the codification of this definition of "final assembly" in the Buy
America rules will not affect the Company's current production of bus shells
for sale to U.S. customers. The correct rule will have no impact on the
Company's current operations and the Company does not plan on making any
changes to its current operations.
    A copy of the correction to the definition of "final assembly" is
available for public inspection prior to its publication on September 28,
2007, at the Office of the Federal Register in Washington, D.C.

    New Flyer is the leading manufacturer of heavy-duty transit buses in the
United States and Canada and a leading provider of aftermarket services. New
Flyer has the broadest range of products in the heavy-duty transit bus
industry and provides its products and services to the majority of the largest
transit authorities in North America.

    Forward-Looking Statements
    This press release contains "forward-looking statements", which reflect
the expectations of management regarding the Company's future growth, results
of operations, performance and business prospects and opportunities. The words
"believes", "anticipates", "plans", "expects", "intends", "projects",
"estimates" and similar expressions are intended to identify forward-looking
statements. These forward-looking statements reflect management's current
expectations regarding future events and operating performance and speak only
as of the date of this press release. Forward-looking statements involve
significant risks and uncertainties, should not be read as guarantees of
future performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such performance or
results will be achieved. Such differences may be caused by factors which
include, but are not limited to, competition in the heavy-duty transit bus
industry, availability of funding to the Company's customers at current levels
or at all, material losses and costs may be incurred as a result of product
warranty costs, material losses and costs may be incurred as a result of
product liability claims, the Company's success depends on a limited number of
key executives who the Company may not be able to adequately replace in the
event that they leave the Company, the absence of fixed term customer
contracts and the termination of contracts by customers for convenience, the
current "Buy-America" legislation may change and/or become more onerous,
production delays may result in liquidated damages under the Company's
contracts with its customers, currency fluctuations could adversely affect the
Company's financial results or competitive position in the industry, the
Company may not be able to maintain performance bonds or letters of credit
required by its contracts, third party debt service obligations may have
important consequences to the Company, interest rates could change
substantially and materially impact the Company's profitability, the
dependence on limited sources of supply and the Company's profitability and
performance can be adversely affected by increases in raw material and
component costs. The Company cautions that this list of factors is not
exhaustive. These factors and other risks and uncertainties are discussed in
the Company's materials filed with the Canadian securities regulatory
authorities and are available on SEDAR at www.sedar.com.
    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. These
forward-looking statements are made as of the date of this press release and
the Issuer and the Company assume no obligation to update or revise them to
reflect new events or circumstances.

For further information:

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

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