New Flyer to Announce 2007 Results and Hold Conference Call March 18, 2008

    WINNIPEG, Feb. 25 /CNW/ - New Flyer Industries Inc. (TSX:NFI.UN) ("New
Flyer" or the "Company"), the leading manufacturer of heavy-duty transit buses
in Canada and the United States, today announced that it intends to release
its 2007 financial results on Tuesday, March 18th, 2008.
    A conference call for analysts and interested listeners will also be held
on Tuesday, March 18th, 2008 at 4:30 p.m. (Toronto time). The call-in number
for listeners is 800-732-9307. A live audio feed of the call will also be
available at:
    A replay of the call will be available from 6:30 p.m. (ET) on March 18th,
2008 to 11:59 p.m. on March 25th, 2008. To access the replay, call
416-640-1917 or 877-289-8525, enter the pass code number 21264187, and then
press the pound No. sign. The replay will also be available on the Company's
website at
    Unless otherwise indicated all monetary amounts in this press release are
expressed in U.S. dollars.
    2007 was highlighted by very strong growth in bus order backlog. This
approximate 60 percent increase in backlog along with the continued robust
growth in the Company's aftermarket operations has resulted in significantly
increased revenue, Adjusted EBITDA, and Distributable Cash for the 52-week
period ended December 30, 2007 ("Fiscal 2007") compared to prior year results.
The Company's Fiscal 2007 financial statements have not yet been finalized and
are currently undergoing audit.
    Similarly, revenue and Adjusted EBITDA for the 13-week period ended
December 30, 2007 ("2007 Q4") increased substantially compared to the results
for the 13-week period ended December 31, 2006 ("2006 Q4").
    The Company's calculation of Distributable Cash for 2007 Q4 was adversely
affected by increased provisions for withholding taxes and income taxes. These
provisions are expected to increase New Flyer's payout ratio from 71% reported
for the 39-week period ended September 30, 2007 ("2007 YTD") to an expected
payout ratio of 76% for Fiscal 2007.
    During 2007 Q4, the Company incurred withholding taxes of $2.1 million
related to an inter-company dividend paid in December 2007. This withholding
tax was incurred as a consequence of the payment of cross-border
inter-corporate dividends that were required to fund dividend payments to
holders of Income Deposit Securities issued by New Flyer and New Flyer
Industries Canada ULC. The 2007 Q4 tax provision includes $0.4 million for
withholding taxes which are expected to continue, on a quarterly basis, based
on current distribution levels.
    The Company's calculation of Distributable Cash was also negatively
impacted in 2007 Q4 as a consequence of the Company's U.S. and Canadian dollar
hedging arrangements. New Flyer's operations generate excess Canadian dollars
which New Flyer hedges through the purchase of forward foreign exchange
contracts for U.S. dollars. In accordance with GAAP, these contracts were
marked to market in the second and third quarters of 2007 which resulted in
2007 YTD unrealized foreign exchange losses of $6.1 million and an associated
tax benefit of $2.2 million. This tax benefit reduced current income taxes
payable and enhanced Distributable Cash by a like amount. In 2007 Q4 the
foreign exchange contracts were settled at a loss which was offset by realized
gains on excess Canadian dollars generated by operations. This results in no
impact to Adjusted EBITDA as the Company effectively hedged its economic
exposure. However, current taxes payable in 2007 Q4 were increased by
$2.2 million with a related reduction in Distributable Cash.

    Non-GAAP Measures

    Adjusted EBITDA consists of earnings before interest, income taxes,
depreciation, amortization and other non-cash charges, adjusted for IPO
related costs and certain other non-recurring charges as set out in the MD&A.
Management believes Adjusted EBITDA and Distributable Cash (as defined below)
are useful measures in evaluating the performance of the Company.
"Distributable Cash" means cash flows from operations adjusted for changes in
non-cash working capital items, and effect of foreign currency rate on cash
and cash equivalents and increased for withholding taxes, defined benefit
funding, distributions on Class B and Class C common shares, follow-on
offering related costs, fair market value adjustment to inventory, fair market
value adjustment to prepaid expenses, proceeds on sale of redundant assets,
and interest on subordinated notes forming part of IDSs and decreased for
defined benefit expense, maintenance capital expenditures, and principal
payments on capital leases. Adjusted EBITDA and Distributable Cash are not
earnings measures recognized under GAAP and do not have standardized meanings
as prescribed by GAAP. Therefore, Adjusted EBITDA and Distributable Cash may
not be comparable to similar measures presented by other entities. Investors
are cautioned that Adjusted EBITDA and Distributable Cash should not be
construed as an alternative to net income or loss determined in accordance
with GAAP as an indicator of New Flyer's performance or to cash flows from
operating, investing and financing activities as measures of liquidity and
cash flows.

    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 2,200 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 listed on the Toronto Stock
Exchange under the symbol NFI.UN.

    Forward-Looking Statements

    Certain statements in this press release are "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. A number of factors could
cause actual results to differ materially from the results discussed in the
forward-looking statements. 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 issues, material losses and costs may be incurred as a result of
product liability claims, changes in Canadian or United States tax
legislation, 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, the Company's profitability and performance can be
adversely affected by increases in raw material and component costs, and the
availability of labour could have an impact on production levels. 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: Glenn Asham, Chief Financial Officer, Tel:
(204) 224-1251, E-mail:

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