Mr. Paul Soubry reports

NFI PROVIDES UPDATE ON SUPPLY CHAIN DISRUPTIONS AND 2021 GUIDANCE

Due to the impact of escalating supply chain disruptions and logistics delays resulting from the continuing COVID-19 pandemic NFI Group Inc. is lowering its financial guidance for 2021.

"Since the beginning of the COVID-19 pandemic, the entire NFI team has been working diligently to manage through its multiple waves and the associated impacts on our customers, supply partners and operations," said Paul Soubry, president and chief executive officer, NFI. "During recent weeks, we have experienced a rapid deterioration in availability of critical parts, components and chassis caused primarily by increasing global supply chain challenges that have created bottlenecks and disruptions across the entire industry. These disruptions have significantly increased since our earnings announcement on Aug. 4, 2021, and we have experienced decreased key parts allocation to NFI from certain suppliers.

"In response to these disruptions, we have made the prudent, yet difficult, decision to temporarily reduce new vehicle input rates through the additional idling of certain facilities and adjusting production in others. These temporary actions will assist in controlling costs and preserving cash flows until supply availability and delivery reliability improve. We anticipate that the general seasonality of our business combined with these mitigation efforts will result in significant cash flow in the fourth quarter, with projected year-ending liquidity of more than $400-million. In addition, we are fortunate that the majority of the vehicles impacted by these disruptions will not result in lost sales as most are contractually sold and are now planned for delivery in 2022.

"We view these global supply chain issues as a temporary phenomenon of the pandemic and our longer-term outlook for the industry and the company remains strong, driven by the tailwinds of historic government funding for public transit, record new public bidding activity, private market recovery and our multiyear backlog. We do, however, expect these supply chain challenges to continue throughout the first half of 2022. We remain confident in our previously announced 2025 target for adjusted EBITDA of $400-million to $450-million," Mr. Soubry concluded.

Given management's expectation that these supply and logistics disruptions are temporary, the board of directors has declared the company's quarterly dividend for the period of July 1, 2021, to Sept. 30, 2021, on the common shares of the company at the pre-existing rate of 21.25 cents per share to holders of record at the close of business on Sept. 30, 2021. The dividend will be payable on Oct. 15, 2021.

In response to these challenges and resulting decrease in deliveries, NFI has lowered its guidance for 2021 to that shown in the attached table.

The guidance provided above is driven by NFI's year-to-date financial results combined with numerous expectations and assumptions including, but not limited to, the following:

• Revenue: Based on expected vehicle deliveries and parts sales during the remainder of 2021. Vehicle deliveries are based on the company's existing backlog across all markets, combined with anticipated sales to private coach operators. Availability of parts, components and chassis will impact anticipated revenue levels, with the lower end of the range reflecting the potential for further negative impacts of supply chain disruptions.
• Zero-emission bus (ZEB) sales: The percentages of ZEB sales are based on the company's expected deliveries using the company's existing backlog and anticipated future sales.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): Based on expected vehicle deliveries and anticipated margins from vehicles in the company's current backlog, anticipated new orders and aftermarket parts sales combined with cost reductions generated from the NFI forward initiative. The company expects to generate $29-million of savings from NFI forward in 2021. The lower end of the adjusted EBITDA range is calculated using scenarios where production continues to be negatively impacted by supply chain disruptions and increased impacts from COVID-19.
• Cash capital expenditures: Based on remaining anticipated cash capital expenditures allocated between maintenance and NFI forward projects.
• Adjusted effective tax rate: Based on current tax rates in the jurisdictions in which NFI operates, anticipated financial results, the company's corporate structure and the assumption that there will not be significant changes in applicable tax rates for the remainder of 2021.
• COVID-19 and supply chain disruptions: The guidance ranges provided above are based on current expectations the impacts COVID-19 and supply chain disruptions may have on NFI's financial results for the remainder of 2021.

The above disclosure outlines guidance for selected 2021 consolidated financial metrics and longer-term targets for 2025. This guidance and these targets take into consideration management's current outlook and the company's anticipated 2021 results and are based on the assumptions and expectations noted in this release. The purpose of the financial guidance and targets is to assist investors, shareholders and others in understanding certain financial metrics relating to expected 2021 financial results and the longer-term 2025 targets in order to assist in the evaluation of the performance of the company's business. The information may not be appropriate for any other purposes. Information about the company's guidance and targets, including the various assumptions and expectations underlying them, is forward looking and should be read in conjunction with the forward-looking statements contained at the end of this press release and the related disclosure and information about various economic, competitive and regulatory assumptions, factors, and risks in the company's other disclosure documents that may cause actual future financial and operating results to differ from management's current expectations. There can be no assurance that such guidance or financial targets will be met and actual performance may differ materially.

The dividends on the shares are designated as "eligible dividends" for purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation.

About NFI Group Inc.

Leveraging 450 years of combined experience, NFI is leading the electrification of mass mobility around the world. With 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 8,000 team members in nine 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 Ltd. (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 105,000 buses and coaches around the world.

We seek Safe Harbor.