New Flyer seeks clarification of Federal Transit Administration changes to Buy America rules

    WINNIPEG, Sept. 21 /CNW/ - (TSX:NFI.UN) New Flyer Industries Inc. and New
Flyer Industries Canada ULC (together, the "Company" or "New Flyer") advised
that the Federal Transit Administration (the "FTA") announced in the United
States Federal Register yesterday that certain changes to the Buy America
rules were being implemented, effective October 22, 2007. The changes include
amendments to the "final assembly" requirements which could potentially have a
material adverse effect on New Flyer's operations and financial results.
Management believes that the new definition of "final assembly" could also
adversely affect the majority of other transit bus manufacturers who sell to
U.S. customers.
    The Company 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, suppliers and
other Canadian and U.S. participants in the transportation manufacturing
industry. The Company is also in the process of assessing the potential impact
of the new rules on its operations.

    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 Company assumes 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

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890