BLUE BIRD CORPORATION ANNOUNCES
PARNTERSHIP WITH ALLISON TRANSMISSION

FORT VALLEY, Ga. ( Dec. 15, 2005) - Blue Bird Corporation announced today their launch of a strategic partnership with Indianapolis-based Allison Transmission. Blue Bird will make Allison automatic transmissions the exclusive transmission offering in all Blue Bird school/activity buses and recreational vehicles.

According to Dennis Whitaker , VP of Engineering, Blue Bird, "Through our strategic sourcing process, we identified the opportunity to become the exclusive school bus partner of Allison Transmission. As such, Blue Bird will be able to provide customers with product ratings and service levels superior to those offered by our competition."

Being a partner in the Allison EDGE Program, Blue Bird can offer their customers improved transmission coverage and reduced routine maintenance costs, along with horsepower and torque ratings that more cost effectively align with the engine models.

"As our partner in the Allison EDGE Program, Blue Bird will have the right transmission packaged with the right coverage at the right price for the particular vocational needs of their customers," said Jim Wanaselja, director, North American marketing sales and service and global business activities, Allison Transmission.

Blue Bird is the only dedicated school bus manufacturer in the world and offers a complete line of Type A, C and D school buses. All Blue Bird buses offer a variety of options and configurations with seating capacities from 10 to 90 passengers.

For nearly 80 years, Blue Bird Corporation has continued to set industry standards with its innovative design and manufacturing capabilities. Blue Bird has an extensive network of distributors and service-parts facilities throughout North America. For more information, please visit www.blue-bird.com.