New Flyer provides further information regarding changes to Buy America rules

    WINNIPEG, Sept. 21 /CNW/ - (TSX:NFI.UN) Further to the release issued
this morning, New Flyer Industries Inc. and New Flyer Industries Canada ULC
(together, the "Company" or "New Flyer") wish to provide further information
regarding the Federal Transit Administration (the "FTA") announcement
yesterday of certain changes to the Buy America rules, effective October 22,
2007, including amendments to the definition of "final assembly".
    The Company, together with other affected manufacturers, is in the
process of seeking clarification of the rule changes from the FTA given that
the changes contradict the FTA's own commentary that accompanied the rule
changes and given that the changes had been previously strenuously opposed by
numerous manufacturers and suppliers in the transportation manufacturing
industry. It is unclear how the new definition of "final assembly", if it is
valid and is implemented as published, will be interpreted, applied or
enforced by the FTA. If the new definition is determined to be incorrect, the
Company cannot predict what the substance of a revised definition would be.
    The new definition, if valid and depending on how it may be interpreted,
applied and enforced by the FTA in the short term, may have a material adverse
effect on the Company's operations and financial results, and in particular
its present ability to complete assembly of a material portion of U.S. bus
shells in compliance with the Buy America regulations. For example, if this
new definition is applied by the FTA on October 22, 2007, against New Flyer's
existing bus contracts, it could result in a material proportion of the buses
shipped by New Flyer to U.S. customers not being compliant under the new
requirements. The Company is in the process of assessing the potential
interpretation, application, enforcement and impact of the new rules. It is
also evaluating potential changes to its operations in order to minimize
disruptions to the production and delivery schedules. Management believes that
if the new rules were to permit a sufficient period of time to address the
implications of the rules, the Company could reorganize production between its
three production facilities in order to mitigate the effects of these new
    The Company is continuing to assess the alternatives available to it and
is aggressively taking action together with other manufacturers to address
this rule change.
    The Company will provide an update to the public in respect of this
matter when it obtains clarification from the FTA.

    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
    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., John Marinucci,
President and Chief Executive Officer, Tel: (204) 224-1251

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