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MCI DELIVERS NINE MORE CNG-POWERED COMMUTER COACHES TO LA DOT

DES PLAINES, ILLINOIS, JULY 6, 2016: (TSX:NFI) (TSX:NFI.DB.U) Motor Coach Industries ("MCI"), a subsidiary of New Flyer Industries Inc. (the "Company"), the largest bus and motor coach manufacturer in North America announced that Los Angeles Department of Transportation ("LA DOT") has added nine more compressed natural gas Commuter Coaches. The new 45-foot coaches, purchased off an option at an estimated cost of $6.8 million, brings the number of CNG-powered MCI coaches now part of LA DOT's fleet to 104.

The new coaches come equipped with a Cummins ISX-G CNG engine and meet standards under the U.S. Environmental Protection Agency and the California's Air Resource Board, which have led to advances in lowering emissions.

"MCI is proud of all of its long-time public transportation partnerships, but Los Angeles is special because of the city's history working for a cleaner environment," said Patrick Scully, MCI Executive Vice President of Sales and Marketing. "MCI is dedicated to innovation in green mass transit and we are honored LA DOT has put our products to work in their effort."

According to Corinne Ralph, LA DOT Chief of Transit, the new 45-foot models serve the agency's goal to improve the quality of express service by replacing older buses, expanding seating capacity, and leveraging technology for improved operational integration. "The new coaches are already in service and our passengers love them," she said. "Our ridership is particular. We went with a higher capacity 45-foot coach to address the issue of overcrowding on certain routes, and added enhancements to provide our riders with a superior experience."

LA DOT first ordered 84 40-foot CNG MCI Commuter Coaches with seating for 49 passengers in 2011. "MCI coaches have proven to be reliable on our express routes, and have surpassed our expectations in terms of in-service availability," said Ralph.

The MCI Commuter Coach is built with a semi-monicoque stainless steel frame and advanced handling features for a safe ride at highway speeds. The new coaches have wheelchair lifts, padded forward-facing seats for 57 riders and amenities like personal reading lights and airflow controls. Options added include bike racks, security cameras, power outlets and USB ports at every seat, and most importantly, in-cabin Wi-Fi to allow distance riders to work and relax with their digital devices.

LA DOT's Commuter Express system connects outlying suburban districts with Downtown Los Angeles and other busy centers including Century City, Westwood, LAX, El Segundo, Pasadena, Glendale, Burbank and Encino. All together, LA DOT operates over 300 vehicles, serving nearly 30 million passengers a year.

NOTE: All dollar amounts are stated in U.S. currency.

About the Company

The Company is the largest transit bus and motor coach manufacturer and parts distributor in North America with fabrication, manufacturing, distribution and service centers in Canada and the United States and employs approximately 5,000 team members.

Through its Canadian and U.S. subsidiaries, Motor Coach Industries Limited and Motor Coach Industries, Inc., the Company is North America's leader in motor coaches, offering the MCI J4500, which has been the industry's best-selling intercity coach for 11 consecutive years, and the MCI D-Series, the industry's best-selling coach line in North American motor coach history. MCI is also the exclusive distributor of Setra S 417 and S 407 in the United States and Canada. MCI actively supports over 28,000 motor coaches currently in service and offers 24-hour roadside assistance 365 days a year.

Through its Canadian and U.S. subsidiaries, New Flyer Industries Canada ULC and New Flyer of America Inc., the Company is North America's heavy-duty transit bus leader and offers the broadest transit bus product line (Xcelsior® and MiDi® models), incorporating the broadest range of drive systems available, including: clean diesel, natural gas, diesel-electric hybrid, electric-trolley and now battery-electric. New Flyer actively supports over 42,000 heavy-duty transit buses (New Flyer, NABI and Orion) currently in service.

The Company also operates North America's most comprehensive aftermarket parts organization providing support for all types of transit buses and motor coaches. All buses and coaches are supported by an industry-leading comprehensive warranty, service and support network.

Further information is available on the Company's websites at www.mcicoach.com and www.newflyer.com.

For further information, please contact:

Patricia Plodzeen Public Relations,
Tel: 847-283-0883
E-mail: pat.plodzeen@mcicoach.com

or

Jon Koffman, Investor Relations
Tel: 204-224-6672
E-mail: investor@newflyer.com

Motor Coach Industries - A New Flyer company: Corporate Address 200 East Oakton Street, Des Plaines, Illinois 60018 | Phone: 866-MCICOACH

Copyright 2004-2017 Motor Coach Industries Int'l, Inc. and its subsidiaries. All Rights Reserved.