Friends of Azure Update

Dear Friends of Azure,

This has been an exciting week for Azure. As you know, on October 30th, Azure announced that its Force Drive pure battery electric drive train would be integrated into the Ford Transit Connect BEV beginning in late 2010. The collaboration between Azure, Ford and Johnson Controls-Saft promises to deliver a revolutionary product to commercial vehicle owners seeking to eliminate fuel costs and tailpipe emissions. It is also another indication of the continuing success of our relationship with Ford.

The market shares our excitement. News of the product development collaboration was carried by national outlets like; USA Today (read full article here: http://content.usatoday.com/communities/driveon/post/2009/11/620001015/1), Reuters, Dow Jones, Wall Street Journal, Fox Business Network, Forbes, Detroit Free Press, Crain's Business, Automotive News, Fleet Owner, EV World, GreenCarCongress, Edmunds, Electric Car; and on news aggregation sites including; AOL, Yahoo, MSNBC, MSNmoneycentral, CNBC, to name just a few. In all, over 60 different publications carried the announcement.

Azure Dynamics will issue its third quarter earnings release mid next week. Azure management will host a webinar to discuss recent activities including the Ford Transit Connect BEV announcement at a later date. Full details on how to access the webinar will be included in the earnings release. We encourage all Friends of Azure to join the conversation.

As always, thank you for your continued support.

Sincerely,

AZD

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Forward-looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning Azure's business development strategy, projected commercial revenues and product deliveries.

The forward-looking statements are based on certain key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs, target market acceptance of Azure's products, current and new product performance, availability and cost of labor and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Azure can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with Azure's early stage of development, lack of product revenues and history of losses, requirements for additional financing, uncertainty as to commercial viability, uncertainty as to product development and commercialization milestones being met, uncertainty as to the market for Azure's products and unproven acceptance of Azure's technology, competition for capital, product market and personnel, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability of management and key personnel, and acquisition integration risk. These risks are set out in more detail in Azure's annual information form which can be accessed at www.sedar.com.

The forward-looking statements contained in this press release are made as of the date hereof and Azure undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

New IEA report details methods for cutting Transport CO2 Emissions by 2050 (Ind. Report

With transport accounting for nearly 24% of global CO2 emissions, it's obvious that the sector must find cleaner ways to move goods and people -- as trucking is expected to double, and car ownership to triple over the next 40 years . A new report by the International Energy Agency (IEA), entitled Transport, Energy and CO2: Moving Toward Sustainability, looks at ways to enable growth in mobility without accelerating climate change. It finds that by shifting more travel to the most efficient modes, improving vehicle fuel efficiency by up to 50% using cost-effective, incremental technologies and moving toward electricity, hydrogen and advanced biofuels can work to reduce transport CO2 emissions far below current levels by 2050, at lower costs than many anticipate. If governments take the bull by the horns, dramatic reductions in CO2 emissions by 2050 can be achieved.
Fuel efficiency will help stabilize emissions growth, but the report suggests that a technological revolution will be needed to halve CO2 emissions by 2050 on the way to a low-carbon future and that will require a serious investment in R&D, careful planning, and the funding to create a sustainable infrastructure.

(Source: IEA, October 27, 2009)

All-Hybrid Taxi Fleet in Phoenix (Ind. Report)

Clean Air Cab, a Phoenix-based taxi company, has become the second taxi cab fleet in the US to rely solely on hybrid cars, joining EnviroCAB in DC. This new initiative is starting with a fleet of 26 hybrid caps, and it plans to grow to 200 vehicles in serving the Metropolitan Phoenix area. Additionally, by paying less for fuel, Clean Air Caps will be able offer slightly lower rates than other area cab companies. Clean Air Cab will also purchases carbon offsets -- through a tree-planting project in Brazil -- to negate its emissions, calling itself carbon neutral.

(Source: EarthTimes, October 20, 2009).

Progressive X-Prize finalists announced (Ind. Report)

Competition is stiffening in the Progressive Automotive X-Prize contest, as the field has been narrowed to 43 contestants and 53 vehicles. These finalists have now made it through two design judging rounds that cut the number of contestants from 111. Surviving entries run a wide gamut from bio-diesel to three-wheelers to high-efficiency ICEs, all competing for the $10,000,000 US prize awarded to the winning 100+ mpg entry. Final judging will happen in September 2010.

(Source: Edmunds, October 20, 2009)

Contact: Progressive Automotive X-Prize, (626) 407-2720, progressiveautopress@xprize.org, www.progressiveautoxprize.org

UMich, Ford working on Hybrid efficiency (R&D)

Ford is working with the University of Michigan (UM) to tweak vehicle electronic systems to make vehicles more efficient and pleasurable to drive. The researchers are analyzing the results of more than 1 million design simulations and investigating ways to improve fuel economy and drivability. "The new hybrid controller design method we have created has the potential to offer consumers more choice in how efficient and drivable their vehicles are," says UM Electrical and Computer Engineering Professor Jessy Grizzle. "I envision hybrids of the future featuring multiple modes or offering customers the ability to customize their driving experience."

(Source: Ford, October 21, 2009)

New cost- and Emissions-saving tools for fleet managers from EDF (New Prod. & Tech.)

The Environmental Defense Fund (EDF) released a set of tools for fleet managers that can cut emissions an average of 14% and lifetime operating costs by 4%. Developed with partner PHH Arval's Green Fleet Program, the tools include free online training modules, greenhouse gas emissions calculators, and a five-step framework for developing a green fleet. The EDF stresses that low-cost measures like teaching drivers fuel-efficient driving techniques can easily cut both emissions and costs before any new equipment is considered. (Source: GreenBiz, October 19, 2009)

Sub-$1,000 EV Charging Station unveiled by ClipperCreek (New Prod. & Tech)

ClipperCreek is selling a new model electric vehicle charging station that costs less than $1,000. "This product is to answer the call by our customers to start installing cost effective public charging stations now," said ClipperCreek President Dave Packard. "Our customers are able to serve their customers, complete 90% of the installation work, and be ready for a simple upgrade when the new plug is available early next year [after SAE specs are finalized]." Auburn, California-based ClipperCreek also announced it will have a fully compatible SAE-J1772 Level 2 upgrade package available for $2,000 in early 2010. This new product is designed for use by fleets and for commercial, retail and workplace charging.