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Winnipeg, Manitoba, Canada, 2013/08/02 - New Flyer Industries, Inc. announced that King County Metro Transit (“Metro Transit”) of Seattle, Washington has awarded New Flyer a five year contract to build up to 530 Xcelsior™ heavy-duty electric-trolley transit buses in both 40’ and 60’ configuratio. TSX: NFI.DB.U
New Flyer Industries, Inc. (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit buses in the United States and Canada, announced today that King County Metro Transit (“Metro Transit”) of Seattle, Washington has awarded New Flyer a five year contract to build up to 530 Xcelsior™ heavy-duty electric-trolley transit buses (or 710 equivalent units or “EUs”) in both 40’ and 60’ configurations.
The contract contains a firm order for 196 EUs and options for up to 514 EUs. A quantity of 240 options for 40’ Xcelsior™ electric-trolley buses and 93 options for 60’ Xcelsior™ electric-trolley buses are intended to be exercised by the San Francisco Municipal Transportation Agency (“SFMTA” or “MUNI”) who were actively involved in the procurement.
The electric-trolley buses will be based upon New Flyer’s best-in-class Xcelsior™ platform and will utilize overhead lines to power the electric propulsion system equipment supplied by Vossloh Kiepe. For over a century, Vossloh Kiepe has supplied innovative electrical systems used on both road and rail vehicles. These vehicles will operate in both urban and suburban public transportation service networks with a special emphasis on economic efficiency and ecology. The buses will utilize active regenerative braking that puts power back into the energy system and they will be able to operate off-wire on battery power for distances up to five miles.
“Electric trolleys have a lot of fans, and I’m one of them,” said King County Executive Dow Constantine, who says the new vehicles were needed to replace older trolleys that have reached the end of their useful life. “They’re quiet, they run clean, they’re part of our transit heritage, and studies confirm they’re the best for moving riders in our very hilly and dense urban environment.”
“We’re privileged to be awarded this contract by Metro Transit including the opportunity to deliver buses to MUNI,” said Paul Soubry, New Flyer’s President and Chief Executive Officer. “New Flyer brought to the competition our highly successful next generation Xcelsior™ bus and over 30 years of experience with electric-trolley buses.”
Metro Transit operates a fleet of nearly 1,500 buses in Seattle and each year carries an estimated 115 million riders. New Flyer has been a big part of that, having built nearly 1,000 buses for Metro Transit since 1999 in a variety of lengths and propulsion systems. These new trolley buses will replace some of their older fleet built by other bus manufacturers and will mark the first time that New Flyer has built electric-trolley buses for Metro Transit.
The notice to proceed has been received and the 710 EUs will now be added to the New Flyer total backlog. The 40’ pilot bus is scheduled to be delivered in May 2014 with production deliveries to commence in December 2014. The 60’ pilot bus is scheduled to be delivered in October 2014 with production deliveries to commence in June 2015. All buses, including the propulsion system equipment, will be Buy America compliant and manufactured in North America.
About New Flyer
New Flyer with its recently acquired NABI subsidiary is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Company (newflyer.com) is the industry and technology leader offering the broadest product line including drive systems powered by: clean diesel, diesel-electric hybrid, natural gas, electric-trolley and all-electric vehicles. All buses are supported by an industry-leading comprehensive warranty and support program, and service network. New Flyer and NABI also operate the transit industry’s most sophisticated aftermarket parts organization, sourcing parts from hundreds of different suppliers and providing support for all types of heavy-duty transit buses.
Together New Flyer and NABI employ over 3,000 team members with manufacturing, fabrication, parts distribution and service centers in both Canada and the United States.
The common 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.
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 economic conditions of and funding availability for customers to purchase buses and to purchase parts or services, customers may not exercise options to purchase additional buses, the ability of customers to terminate contracts for convenience and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at 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.