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MCI ANNOUNCES PLANS TO OPEN SAN FRANCISCO BAY AREA SERVICE CENTER

DES PLAINES, ILLINOIS, JANUARY 12, 2017: (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 it plans to open a new MCI Service Center in the greater San Francisco Bay area.

The new location will expand MCI's service network to seven North American locations that support both MCI and Setra brand coaches with OEM parts, maintenance, repair and warranty. Consistent with other MCI Service Center locations, the San Francisco facility will include service and bus-wash bays, and a parts pick-up window along with new and pre-owned coach inventory.

"The expansion of our Service Center network is just one of the long-term investments New Flyer has made in improving MCI's overall customer service," said Ian Smart, president of MCI. "Northern California's coach population is significant and the location will be convenient for our customers not only in the Bay area but also throughout the Western U.S."

The San Francisco Bay Area — with its extensive employer-funded private transportation shuttles transporting thousands of high-tech professionals from the San Francisco metro area round trip from Silicon Valley — has made luxury motor coaches the vehicle of choice for energy-efficient transportation. These corporate transportation systems operate daily service with upscale amenities, making access to top service and parts assistance critical.

"We're committed to improving our service to this area of the country," said Jim Macdonald, MCI Vice President of Quality and Customer Service, who recently took over responsibility for MCI Service Centers, field-service and warranty– an internal organizational move that aligns support and reliability functions with OEM quality at the MCI plant in Winnipeg. "Our service center strategy is focused on preventive maintenance, and quick, quality repairs. We are proactive in keeping customer coaches reliable for maximum uptime."

Throughout North America, MCI Service Centers employ more than 100 MCI and Setra factory-trained technicians at locations in Des Plaines, Illinois, Orlando, Florida, Los Alamitos, California, Blackwood, New Jersey, Dallas, and Montreal, Quebec, Canada. MCI also has 27 Technical Solutions Managers in the field to provide hands-on support and diagnostic assistance to MCI and Setra coach owners.

MCI Service Centers offer owners of MCI coaches a ReliaDrive guarantee with same-day diagnostics, accurate estimates, fixed right repairs and a six-month parts and labor warranty, or the next service comes with three free hours of labor.

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.

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. 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 market and general economic conditions and funding availability for customers to purchase coaches and to purchase parts or services and the other 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, 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.

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, New Flyer 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.