New Flyer Industries Inc. announced that the Birmingham-Jefferson County Transit Authority ("BJCTA") has awarded New Flyer a contract for 50 Xcelsior compressed natural gas ("CNG") 40-foot heavy-duty buses. The five year contract contains a firm order of 20 CNG buses with three options of up to 10 CNG buses each. In addition to the firm order for 20 buses, BJCTA is also exercising 10 option buses at this time.

This award was part of the group of firm and option orders for 630 new buses (801 EUs) noted in the New Flyer press release of January 9, 2013 as pending from a number of customers where approval had been granted by the customer's board, council, or commission, as applicable, but purchase documentation had not yet been received by the Company and therefore not yet included in the backlog. With their current order of New Flyer buses, BJCTA continues its transition to an all-CNG transit fleet supporting its quest to reduce green house gas emissions. CNG propulsion is a cleaner, more efficient system than a standard diesel system, with such benefits as enhanced air quality and reduction in pollutants.

The 30 CNG buses are anticipated to begin production in the second quarter of 2013. All buses are expected to be delivered by the third quarter of 2013.