Dear Friends of Azure,

Today President Barack Obama discussed the proposed clean fleet public-private partnership and other related energy issues. Earlier this week, the President called for administrative action directing that by 2015 all new vehicles purchased by Federal agencies be alternative-fuel vehicles, including hybrid and electric vehicles. The Federal government operates more than 600,000 fleet vehicles making it the largest fleet in America, ordering approximately 60,000 - 70,000 new units annually.

"The importance of this program to a company like ours, as well as to the environment, can't be overstated," said Scott Harrison, Azure Dynamics CEO. "We have interest from the government and we know that the Department of Defense has a number of initiatives for non-tactical vehicles that our products could fill. What has been lacking has been a uniform vision, which this seems to resolve."

As part of his plan, President Obama plans to cut one-third of oil imports by 2025. Large commercial fleets are heavily dependent on petroleum-based fuels, and therefore offer significant opportunities to reduce fuel use and carbon pollution. The DOE is challenging more companies to join the Clean Fleet Partnership and take advantage of Federal programs in support of clean technology adoption. President Obama also reiterated his commitment to a $7,500 tax credit for electric vehicles.

"President Obama and his team seem to agree with our belief at Azure that commercial vehicle fleets are the logical starting point to advance the adoption of alternative energy transportation en mass," said Harrison. "We applaud the President for his leadership and believe this plan will create a more predictable market for clean commercial trucks, which, in turn, helps bring down purchase costs further propelling the industry."

Ray LaHood, Secretary of Transportation, said, "We have the opportunity, and the obligation, to take action. We can change both the types and the amounts of energy that our transportation systems use while also creating good, high-paying jobs and easing everyone's burden at the pump."

President Obama announced that the initial National Clean Fleets Partnership will include AT&T, FedEx, PepsiCo, UPS, and Verizon. These five companies will agree to deploy an additional 20,000-plus advanced technology vehicles incorporating electric vehicles, alternative fuels, and fuel-saving measures into their daily operations.

Sincerely,
AZD



Forward-Looking Statements Advisory
Certain information included in this communication constitutes forward-looking statements and information and future-oriented financial information under applicable securities legislation and is provided for the purpose of expressing management's current expectations and plans for the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.

More particularly, this communication contains statements concerning Azure's anticipated: business development strategy, customer orders, product deliveries, sales, revenue and revenue growth. The forward-looking statements are based on a number of key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs and sales, 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 used to develop the forward-looking statements 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 numerous risks and uncertainties that contribute to the possibility that the projections and forecasts in the forward-looking statements will not occur and that actual performance or results could differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks associated with Azure's stage of development, history of losses and lack of historical product revenues, uncertainty as to product development and sales milestones being met, product defect and performance risks, competition for capital and market share, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability and retention of management and key personnel, exchange rate and currency fluctuations, uncertainties relating to potential delays or changes in plans with respect to product development or capital expenditures, the ability of Azure to access sufficient capital on acceptable terms, and environmental and safety risks. This is not an exhaustive list and additional information on these risks and other factors that could affect Azure's operations and financial results are included in reports on file with the Canadian securities regulatory authorities and can be accessed through the SEDAR website at www.sedar.com.

The forward-looking statements contained in this communication 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. Additionally, Azure undertakes no obligation to comment on the expectations of, or statements made by, third parties about Azure.