New Flyer Industries Inc. ("New Flyer" or the "Company"), the leading manufacturer of heavy-duty transit buses in Canada and the United States, provides an update regarding financial performance for the fourth quarter of 2012 ("Q4 2012") and an update on recent order activity.

In the Company's third quarter earnings release issued on November 12, 2012, management advised that anticipated Adjusted EBITDA for Q4 2012 was expected to be stronger than the Adjusted EBITDA realized in the third quarter of 2012 ("Q3 2012").  Although the Company has not yet completed the preparation of its financial results for the year ended December 30, 2012, based on the information available to date, management now believes that Adjusted EBITDA for Q4 2012 will be approximately equal to Adjusted EBITDA of Q3 2012.  This is primarily the result of an unanticipated delay in deliveries under a contract due to a supplier quality issue which is in the process of being rectified, a delay in deliveries from the previously announced deferred award and production of 90 60-foot Xcelsior buses (180 equivalent units or "EUs") under the New York City Transit Authority contract and additional provisions in warranty reserve.