January 3, 2018 | New Flyer

Anniston, Alabama, USA – January 3, 2018: (TSX: NFI) New Flyer of America Inc. (“New Flyer”), the U.S. subsidiary of New Flyer Industries Inc. (“NFI Group”), the largest transit bus and motor coach manufacturer and parts distributor in North America, today announced that its Anniston, Alabama facility has successfully completed its first full build of an Xcelsior CHARGE™ zero-emission, battery-electric, heavy-duty transit bus.

The Anniston facility now joins all other New Flyer locations with capability to manufacture the Xcelsior CHARGE™ battery-electric bus, including Winnipeg, Manitoba, and Crookston and St. Cloud, Minnesota. New Flyer’s Anniston facility is also home to the Vehicle Innovation Center, opened in October 2017 and dedicated to advancing bus and coach technology, specifically in electric and autonomous propulsions. It is the first and only innovation lab of its kind in North America.

The Xcelsior CHARGE™, New Flyer’s next-generation battery-electric bus, debuted at the triennial American Public Transportation Association (APTA) EXPO in October 2017 in Atlanta, Georgia. It features the proven Xcelsior transit bus platform with enhancements of extended range batteries (made with U.S.-based technology and manufacturing), industry leading hill climbing ability, the highest passenger load carrying capacity, and ability to recharge with interoperable equipment available from globally recognized charging system suppliers. The Xcelsior CHARGE™ is available in 35, 40, and 60-foot bus rapid transit articulated models.

“The completion of our first zero-emission, battery-electric Xcelsior CHARGE™ transit bus produced start-to-finish at our Anniston facility, is yet another major accomplishment for New Flyer,” said Kevin Wood, Senior Vice President of Manufacturing and Facilities, New Flyer of America. “Over the past two years, we invested significantly to establish Anniston as a leader in American bus manufacturing and advanced vehicle innovation. We are proud to bring electrification into the fold, and look forward to growing our footprint of zero-emission, innovative transportation that helps power America’s communities forward, on a safe and environmentally sustainable basis.”

Following the September announcement of a USD $25 million investment in renovations and expansions at the Anniston facility, and subsequent groundbreaking event commemorated by Alabama Governor Kay Ivey, New Flyer opened its Vehicle Innovation Center onsite in October 2017 to mark its evolution in and commitment to battery-electric bus manufacturing in Anniston, Alabama.

The Vehicle Innovation Center is dedicated to the exploration and advancement of bus and coach technology and serves to:

Explore and advance bus and coach technology through sustainable research and development, fresh innovation, progressive manufacturing, and bold thinking;

Foster dialogue through discussion, education, and training on the latest zero-emission and autonomous driving vehicle technologies;

Engage learning through current and interactive exhibits, simulation and hands-on experiences, and observations;

Generate energy and commitment to clean air quality, safety, and economic benefits for people, communities, and business; and

Harness the positive influence of collaboration, environmental stewardship, and social change to advance mobility solutions.

The New Flyer Anniston facility (formerly North American Bus Industries), was acquired by New Flyer in 2013 and consists of five buildings that manufacture transit buses from part fabrication, to high-strength frame welding, to final assembly. In 2015, New Flyer invested USD $20 million to transform the campus to a world-class LEAN manufacturing site capable of producing New Flyer’s Xcelsior® heavy-duty bus platform.

New Flyer currently employs 610 people in Alabama, and is expected to add approximately 60 people to the Anniston team in 2018. The NFI Group has over 50 years of experience in manufacturing zero-emission buses (ZEBs), and employs more American workers than any other U.S. bus manufacturer.

About NFI Group

NFI Group and its subsidiaries comprise the largest bus and motor coach manufacturer and parts distributor in North America, with 32 fabrication, manufacturing, distribution, and service centers located across Canada and the United States and employing nearly 6,000 team members.

NFI Group provides a comprehensive suite of mass transportation solutions under several brands: New Flyer® (heavy-duty transit buses), ARBOC® (low-floor cutaway and medium-duty buses), MCI® (motor coaches), and NFI Parts™ (bus and coach parts, support, and service). NFI Group’s vehicles incorporate the widest range of drive systems available ranging from clean diesel, natural gas, diesel-electric hybrid, trolley-electric, battery-electric and fuel cell.

New Flyer is North America's heavy-duty transit bus leader and offers the most advanced product line under the Xcelsior ® and Xcelsior CHARGE™ brands. New Flyer actively supports over 44,000 heavy-duty transit buses (New Flyer, NABI, and Orion) currently in service, of which 6,400 are powered by electric and battery propulsion.

and Xcelsior CHARGE™ brands. New Flyer actively supports over 44,000 heavy-duty transit buses (New Flyer, NABI, and Orion) currently in service, of which 6,400 are powered by electric and battery propulsion. ARBOC is North America’s low-floor, body-on-chassis (“cutaway”) bus leader serving transit, paratransit, and shuttle applications. With more than 2,500 buses in service, ARBOC leads the low-floor cutaway bus market providing unsurpassed passenger accessibility and comfort over traditional high-floor cutaway vehicles. ARBOC also offers a medium-duty bus for transit and shuttle applications.

Motor Coach Industries is North America’s motor coach leader offering the J-Series, the industry’s best-selling intercity coach for 11 consecutive years, and the D-Series, the industry’s best-selling motor coach line in North American history. Motor Coach Industries is also the exclusive distributor of Daimler’s Setra S 417 and S 407 motor coaches in the United States and Canada. MCI actively supports over 28,000 coaches currently in service.

NFI Parts is North America's most comprehensive parts organization, providing replacement parts, technical publications, training, service, and support for NFI Group’s bus and motor coach product lines.

Further information is available at www.newflyer.com, www.arbocsv.com, and www.mcicoach.com. The common shares of NFI Group are traded on the Toronto Stock Exchange under the symbol NFI.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of the NFI Group 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 those 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, NFI Group disclaims 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.

For further information, please contact:

Jon Koffman

Investor Relations

Ph: 320-316-4964