Greyhound to stop operations in Northwestern Ontario

NEWS RELEASE

GREYHOUND CANADA

*************************** Greyhound to cease operations in Manitoba and Northwestern Ontario with other provinces to follow shortly

Federal and provincial governments continue to ignore the issues facing the intercity bus industry

BURLINGTON - (September 3) - After ongoing discussions with the federal and provincial governments, Greyhound Canada made the very difficult decision to provide the notice to the operating authorities in Ontario and Manitoba that they will be ceasing operations.

In Manitoba, the company will cease all operations in the province and in Ontario the company will cease operations in Northwestern Ontario.

In addition, the Company is reviewing its operations in Alberta, Saskatchewan, British Columbia, Yukon, and the Northwest Territories.

"The decision to cease our operations in Northwestern Ontario and Manitoba was a very difficult one. We have repeatedly asked the federal and provincial governments to change the existing legislative and regulatory regimes that govern inter-city bus operations," said Stuart Kendrick, senior vice-president Greyhound Canada. "Our financial situation is dire and we are no longer in a position to absorb losses that are almost solely attributable to government policies."

In the next 30 and 90 days, Greyhound Canada will continue to work with the federal and provincial governments to try and find a solution to this emergency.

Greyhound has asked for assistance to cover its losses while the federal and provincial governments develop a solution in order to maintain this essential service to rural Canadians.

The Government of Canada has constitutional jurisdiction over the intercity bus industry with their regulatory powers being delegated to the provinces.

All of the provinces in which Greyhound operates exercise some form of regulatory oversight over scheduled intercity bus operations.

Bus operators are being forced to financially support unprofitable route services to small-town Canada through an intricate web of cross-subsidies from their profitable passenger routes, from bus parcel operations and from ancillary profit sources.

"Despite numerous attempts over the years to adjust this business model in order to gain a profitable footing, Greyhound Canada has now run out of options," said Kendrick. "We need the provincial and federal governments to work with us on finding a solution to the problems that they have created for our company and our industry."

In Ontario, the notice to the Ontario Highway Transport Board is 90 days, meaning Greyhound service in Northwestern Ontario will cease as of December 2, 2009.

In Manitoba, the Company is providing 30 days notice to the Manitoba Highway Traffic Board (MHTB).

The MHTB requires no notice on the ceasing of operations, however in order to honour all passenger tickets sold to date the company is providing a 30 day notice period.

About Greyhound Canada

Greyhound Canada is the largest provider of intercity bus transportation in Canada, serving nearly 700 communities and offering 1,000 daily departures across the country.

The company also provides Greyhound Courier Express, QuickLink commuter service and tour, sightseeing and transit services.

For fare and schedule information call 1-800661-8747 or visit www.greyhound.ca.

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