Mr. Stephen King reports

NFI SUBSIDIARY ALEXANDER DENNIS ANNOUNCES CONSULTATION ON UK MANUFACTURING STRATEGY

NFI Group Inc.'s subsidiary, Alexander Dennis Ltd., is entering into a consultation on a new strategy for its United Kingdom manufacturing operations. The refocused strategy results from the completion of a detailed business review and is intended to adjust the U.K. business to changing market dynamics.

Under the consultation, Alexander Dennis will look at consolidating its U.K. bus body manufacturing operations into a single site in Scarborough, England. Its Scottish-based manufacturing in Falkirk, which has already been reduced in recent years, would be discontinued, and the site closed. Production lines at Larbert would be suspended upon the completion of current contracts.

This proposed structure will lower overall costs, deliver clearer responsibilities, and increase efficiency by removing duplicate functions and activities.

The statutory consultation places up to 400 roles at Alexander Dennis at potential risk of redundancy. This represents approximately 22 per cent of Alexander Dennis's work force and 4 per cent of NFI's global work force. The company expects a follow-on impact in its domestic supply chain, where it has spent over one billion pounds sterling in the past five years with its 1,000 suppliers in all parts of the U.K.

Alongside the new manufacturing strategy, Alexander Dennis is making changes to the structure and management of key customer support teams to drive a clearer focus on quality and reliability, delivery to targets, and communications.

Paul Davies, Alexander Dennis president and managing director, said: "We are proposing a new U.K. manufacturing strategy to underpin financial sustainability and lower operating costs in the face of changing and challenging market dynamics. Together with our parent NFI Group, we are extremely proud of our U.K. history and legacy dating back to 1895, and firmly believe in our people, products and business. We must take significant action to drive efficiency to allow our operating model to be competitive.

"It is extremely regrettable that, as part of this, we must place jobs at potential risk of redundancy and propose to cease manufacturing operations at some of our facilities. While stakeholders have been sympathetic of the situation, the stark reality is that current U.K. policy does not allow for the incentivization or reward of local content, job retention and creation, nor does it encourage any domestic economic benefit. We have warned of the competitive imbalance for some time and would like to see policy and legislative changes that incentivize the delivery of local benefit where taxpayer money is invested. We strongly believe funding that supports public transport should lead to investment in local jobs, domestic supply chains, technology creation and a recurrent tax base."

About NFI Group Inc.

Leveraging 450 years of combined experience, NFI offers a wide range of propulsion-agnostic bus and coach platforms, including market-leading electric models. Through its low- and zero-emission buses and coaches, infrastructure, and technology, NFI meets today's urban demands for scalable smart mobility solutions. Together, NFI is enabling more livable cities through connected, clean and sustainable transportation.

With nearly 9,000 team members in 10 countries, NFI is a leading global bus manufacturer of mass mobility solutions under the brands New Flyer (heavy-duty transit buses), MCI (motor coaches), Alexander Dennis (single- and double-deck buses), Plaxton (motor coaches), Arboc (low-floor cutaway and medium-duty buses) and NFI Parts. NFI currently offers the widest range of sustainable drive systems available, including zero-emission electric (trolley, battery and fuel cell), natural gas, electric hybrid and clean diesel. In total, NFI supports its installed base of over 100,000 buses and coaches around the world. NFI's common shares trade on the Toronto Stock Exchange under the symbol NFI, and its convertible unsecured debentures trade on the TSX under the symbol NFI.DB.

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