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SOUTHERN COACHES STEERS FOR GROWTH WITH TWO NEW MCI® J4500 COACHES

DES PLAINES, ILLINOIS, JULY 28, 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 says colleges, corporate charters, the military and very particular customers including international and domestic tour groups are an enviable mix for any tour and charter company. But Southern Coaches has built that clientele by keeping one of the newest fleets in the South.

The Dothan, Alabama, carrier believes in sticking with a winner and recently added two more new MCI J4500s to its meticulously clean and maintained 14-J4500 coach fleet.

"We've had our oldest customer for 25 years; it was our first private charter," explains John Adams, president. "It comes down to this — We think the quality, condition and ongoing maintenance of every coach matters to each customer we have. They know we'll meet their high standards."

Such dedication to operations and customer service have earned Southern Coaches a Number 1 rating by the Military Traffic Management Command of the Department of Defense, and assured them status as the only Transportation Safety Exchange (TSX)-certified carrier in Alabama.

Increased quality, increased safety, and increased business. Says Adams, "Increased business is calling for new coaches, primarily for college contracts and upscale tours," so enter the new J4500s. Each 2016 coach offers a new standard tighter-turning independent front suspension and braking system offering car-like control and excellent stopping distances.

Southern Coaches has also invested in an optional back-up camera system and a state-of- the-art REI in-cabin audio visual system. These newest coaches also save money with their workhorse reliability, low total cost of operation and significant fuel economy gains. Southern's signature decal puts a finishing touch on the new coaches' curb appeal.

Adams says his fleet is so well-maintained "that it's hard to spot the model year."

Sought after by the world's leading international and renowned U.S.-based escorted group tour and travel companies, Southern Coaches takes tours cross country, and keeps local clients as well served. These include universities' sports teams, bands and the like along with military and corporate transport.

Southern Coaches was the successor company to G. Milton Adams' highly successful regional truck line. A motorcoach hobbyist, the elder Adams kept an MCI coach for occasional use, and when he sold the trucking company in 1989, he bought a pre-owned MCI, which brought his new company's fleet to two coaches.

Today, the company operates a fleet of 24 coaches, mostly MCI models, and has grown to be one of the region's leading operators with a staff of 45 and "several hundred repeat customers who take two to 40 trips a year with us," said Adams. "Our staff and drivers are genuinely engaged with our customers. It's rewarding to have customers call after a trip and acknowledge the quality of the coach and professional, courteous hospitality of the driver." That happens all the time at Southern Coaches.

When Southern's busiest season winds down, Adams unwinds by enjoying his ski boat and woodworking. "Those are my stress relievers," said Adams, whose devotion to his company and the industry earned Southern Coaches the International Motor Coach Group's (IMG) Operator of the Year award in 2014.

The invitation-only organization has a reputation for tapping only highly successful, trusted transportation providers. Its Operator of the Year award only goes to those firms that best uphold IMG standards, which fits Southern Coaches to a T. Learn more at www.southerncoaches.com.

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 the leader in motor coaches in Canada and the U.S., offering the MCI J4500, which is 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.

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

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