Dear Friends of Azure,

It's been a few weeks since we first addressed you, our 'Friends of Azure'; well here we are again with more news from AZD to help you better understand the company and some of our recent activities.

First of all, we had a successful Annual General Meeting on June 9th. Azure executives discussed the strategic approach to 2009 and beyond. On the cost side, we detailed our actions that will result in a 42% reduction in bill of material costs! Also, we outlined our sales progress which has the company on track for another year over year sales increase.

For the first time ever, the AGM was offered via web cast and, although we had a bit of an audio glitch to start, in the end over 77 people tuned in. Nice. This was the AGM of firsts for AZD; first webcast as mentioned, first time in Detroit, first time we had a ride and drive proudly demonstrating AZD products and the first time we had a mock trade show display showcasing our components. We will be posting bits and pieces of the AGM on our website over the next week. Speaking of the website, we have a new Corporate Video which is on our site and speaks directly to the AZD Brand.

The video was produced internally and we believe it will help the company to visually relate our overall mission. Also posted on the site is the 2008 Annual Report. In an effort to reduce the amount of paper used by the company, the report was produced electronically. AZD has implemented a companywide sustainable practices program. This program has created a spirited competition at each AZD location as our 'best people' are competing to raise the bar on 'green initiatives' and charitable donations...AZD staff are biking to work, bringing in canned foods from home and making personal donations to help the less fortunate...together we are 'driving a world of difference'.

We now have an AZD YouTube Channel where the AZD Corporate Video and a couple of other company videos reside. As we move forward, we will populate this channel with any relevant clips as well as other video we may produce internally. If you have any video that you think is worth showcasing, please let us know.

Other pieces of corporate good news are recent announcements like the Company's recognition from the Canadian Advanced Technology Innovation and Leadership Award program (5/28), a new partnership between Azure and Champion Bus (6/2), a shuttle bus sale to Blue Cross Blue Shield Tennessee (6/8), two shuttle sales to the Nashville MTA (6/8), an order for 15 Balance Hybrid Electric shuttle buses from Metro Mobility in Minneapolis (6/11), and a new Purolator order for 50 additional Balance Hybrid Electric trucks (6/18). So, in the past three weeks alone, our activity includes 68 vehicle sales, another key distribution partnership and an important recognition from a prestigious advanced technology outlet.

The announcement about yet another Bus Body partnership with Champion Bus was significant as it provides Azure added distribution and reach into the shuttle bus market through a significant and highly regarded builder in the bus body sector. As it reads now the scorecard should show that we have expanded the channels of distribution significantly, with Ford Dealers moving the Balance Hybrid Electric and Champion Bus, Goshen Coach, Turtle Top, Glaval, StarTrans, Supreme and Collins Bus also developing the Balance E450 in shuttle bus configurations. The company is increasingly well represented throughout North America.

Remember the Collins Bus announcement from early April? School Transportation News, the lead voice of the School Transportation industry, produced a feature article on the announcement and our technology. That article is available on our website. Azure was pleased to participate in the June 11th "Hybrids on the Hill" event. Sponsored by CALSTART and Environmental Defense Fund, the event showcased hybrid truck technology to an audience of legislators and media in Washington D.C. Azure technology was visible on four of the trucks shown including one of the very few vehicles that were actually parked adjacent to the Capitol Reflecting Pool. This event offered phenomenal visibility for Azure in front of policy-makers, key customers, industry associations and media. We will be posting as many photos as we can gather from the event and they, too, will make our hit parade on the website.

Azure continues its aggressive stance related to opportunities with federal stimulus programs. We have already seen funding favorably impact the hybrid electric and electric commercial vehicle markets. We believe that the Administration's efforts will continue to provide a tailwind for Azure technology as we become the preferred provider of efficient, green transportation.

We appreciate your continued interest and support for Azure Dynamics. We continue to see positive results of our efforts and look forward to continuing to earn customers and delight shareholders.

Sincerely,

AZD

Forward-looking Statements This document contains forward-looking statements. More particularly, this document 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 labour 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.