Marcopolo Sells a Portion of its Shares in New Flyer, Remaining New Flyer's Largest Shareholder, and Confirms Ongoing Commercial Cooperation Initiatives

WINNIPEG, MANITOBA--(Marketwired - Sept. 22, 2016) -

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New Flyer Industries Inc. (TSX:NFI)(TSX:NFI.DB.U) ("New Flyer" or the "Company") confirmed today that, based on publicly-disclosed information, Marcopolo S.A. ("Marcopolo"), through its wholly-owned subsidiary, Marcopolo Canada Holdings Corp., has sold 4.5 million common shares of New Flyer, which represent approximately 7.4% of the issued and outstanding common shares of New Flyer. Marcopolo advised that the secondary sale was made through a "bought block trade" arranged by a syndicate of underwriters led by CIBC Capital Markets.

Following the sale, Marcopolo beneficially owns 6,587,834 common shares, representing approximately 10.8% of the issued and outstanding common shares. The sale has allowed Marcopolo to monetize a portion of its holdings for its own capital allocation purposes. Marcopolo's initial investment in New Flyer occurred in early 2013 and it remains the Company's largest shareholder.

Notwithstanding the change in shareholding, New Flyer and Marcopolo have re-affirmed their ongoing commercial cooperation initiatives under their 2013 Memorandum of Understanding, pursuant to which the two companies have been exploring opportunities to cooperate on engineering, technical, purchasing and operational matters and assessing Marcopolo's technology and products for possible introduction into the Canadian and US markets through New Flyer, as well as New Flyer's technology and products for potential distribution into global markets.

Paul Soubry, President and Chief Executive Officer of New Flyer said, "Marcopolo has been an outstanding shareholder and partner of New Flyer since their investment in the Company in 2013. We look forward to continuing our successful relationship with Marcopolo, including continued investigation of opportunities for commercial cooperation under the Memorandum of Understanding between the companies."

The common shares of New Flyer being sold by Marcopolo have not been registered under the U.S. Securities Act of 1933, as amended. This news release is not an offer of securities for sale in the United States and the common shares of New Flyer may not be offered or sold in the United States except pursuant to an exemption from registration.

About New Flyer

The Company is the largest transit bus, 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, 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. The Company actively supports over 42,000 heavy-duty transit buses (New Flyer, NABI and Orion) currently in service.

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 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 S417 and S407 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.

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.newflyer.com and www.mcicoach.com. The Shares and convertible unsecured subordinated debentures of the Company are traded on the Toronto Stock Exchange under the symbols NFI and NFI.DB.U, respectively.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Company that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions, the covenants contained in the Company's senior credit facility could impact the ability of the Company to fund dividends and the other risks and uncertainties detailed in the disclosure documents filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, the Company 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.