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.