Blue Bird Acquired AGAIN!

[g_man1146]

BLUE BIRD CORPORATION TO BE ACQUIRED


"FORT VALLEY, GA (August 25, 2006) -Blue Bird Corporation announced
today the signing of a definitive agreement to be acquired by an
affiliate of Cerberus Capital Management, L.P. Terms of the
transaction were not disclosed.

Jeffry Bust, President and Chief Executive Officer of Blue Bird
said, "The acquisition is a significant step forward ensuring Blue
Bird will remain one of the world's leading school and commercial
bus manufacturers. The acquisition also provides financial stability
for our distributors, suppliers and employees."

The proposed transaction is expected to close in September. Kroll
Zolfo Cooper, LLC served as the exclusive financial advisor to Blue
Bird in connection with the transaction."

Rich D. '99LXi43