Escanaba, MI July 3, 2008 -- Engineered Machined Products Inc. (EMP) announced that it has entered into an arrangement with New Flyer Industries Inc. (New Flyer) of Winnipeg, Manitoba, Canada to supply next generation thermal cooling systems on municipal transit buses.

EMP has been developing its electrified cooling system since 2006 when both companies were pursuing innovations to significantly improve fuel economy, reduce emissions, and enhance passenger safety. "New Flyer is a market leader among OEM's in the municipal transit industry and we're pleased to be associated with them," said Jeff Bannister, vice president of EMP's advanced products group. He added, "Extensive pilot tests were conducted under the harshest of conditions. With over 1.5 million miles of field testing on over one-hundred transit buses across fifteen municipal transit properties in North America, the mini-Hybrid continues to deliver as expected. "

Paul Smith, New Flyer's executive vice president of sales and marketing said, "New Flyer is pleased to have the opportunity to launch EMP's mini-Hybrid, an innovative advanced thermal cooling system. Our market demands that we continue to utilize the most environmentally friendly technologies available to improve fuel efficiency and reduce emissions. Through pilot testing and collaboration, EMP has consistently demonstrated its ability to deliver".

This modular, fully customizable kit replaces the conventional cooling system on diesel-powered and natural gas engines. The mini-Hybrid is certified on Cummins 2007 diesel engines and is in process of certification on 2007 CNG engines. Instead of a radiator, charge air cooler and standard hydraulic fan, the "mini-Hybrid" uses an array of powerful, reversible and highly durable fans monitored by a sophisticated electronic control module. EMP's "Power 450" brushless alternator powers the mini-Hybrid thermal system.

The mini-Hybrid enables optimized operating temperatures, longer maintenance intervals and reduces hydraulic oil, thereby improving passenger safety and reducing thermal events. According to Mark Bader, EMP's director of new products, "Municipal transit buses equipped with the mini-Hybrid system get better mileage and generate lower emission levels."

David Hyink of Valley Metro, transit property in Mesa, Arizona said, "This product has been field tested under the most extreme conditions. It enables significantly more power to the wheels, with better fuel economy and less maintenance of traditional hydraulic cooling systems."

According to Sandra Draggoo, CEO and executive director of Capital Area Transit Authority in Lansing, Michigan, "The result of installing the mini-Hybrid system has produced fuel economy improvement between 3 to 14% among the various engines involved; we are excited to see the full economy gains made. "

For more information, please contact: Paul Harvey at 906-786-8404 or via email at paul.harvey @ emp-corp.com

About EMP

EMP is an engineering and manufacturing leader in advanced thermal and oil management technologies. Based in Escanaba, Michigan, EMP products are used globally by major diesel engine OEM's and hydraulics manufacturers. For more information, visit EMP at Booth #7433 at APTA - 2008 in San Diego or contact Ralph Bedogne at 906.789.7497. EMP's website is www.emp-corp.com .

About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Company's three facilities -- in Winnipeg, MB, St. Cloud, MN and Crookston, MN -- are all ISO 9001, ISO 14001 and OHSAS 18001 certified. With a skilled workforce of over 2,300 employees, New Flyer is a technology leader, offering the broadest product line in the industry, including drive systems powered by clean diesel, LNG, CNG, hydrogen fuel cell and electric trolley as well as energy-efficient gasoline-electric and diesel-electric hybrid vehicles. All products are supported with an industry-leading, comprehensive parts and service network. New Flyer's Income Deposit Securities are traded on the Toronto Stock Exchange under the symbol NFI.UN. Further information is available on Company's web site at www.newflyer.com.

Engineered Machined Products, Inc.
2701 North 30th Street
Escanaba, Michigan 49829
USA