Azure Dynamics

Dear Friends of Azure,

2011-04-20T15:06:00.000-04:00

Azure recently concluded a busy week abroad. Along with Ford Europe, Azure presented the Transit Connect Electric at the Birmingham, England, Commercial Vehicle Show, among the largest auto expositions in Europe. The van was very well received by those who got behind the wheel, including dozens of journalists, industry VIPs and potential customers. As the Birmingham event concluded, Transit Connect Electric quickly moved on to Aachen, Germany where it was again put to the test.

This link, Click Here, takes you to an excellent article from England's The Sun newspaper (circulation 3.5 million). The article and very positive accompanying video reflects the enthusiasm that Transit Connect Electric has met in Europe.

Back in North America, it's Day Two of the EDTA (Electric Drive Transportation Association) show in Washington D.C. where once again Azure and the Transit Connect Electric are on static display and the Transit Connect Electric vehicle is available for ride and drive activity for media, customers and federal government representatives. Azure's BalanceTM Hybrid Electric shuttle bus was also busy yesterday as it drove the EDTA Board of Directors around Washington, including a trip to the White House where the Board held meetings. The timing of the D.C. event is opportune following closely on the heels of President Obama's statement recommitting his desire to see one million electric vehicles on the road in the United States by 2015.

Sincerely,

AZD

Dear Friends of Azure,

2011-04-01T15:09:00.001-04:00

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.

Dear Friends of Azure,

2011-03-31T10:36:00.002-04:00

Azure Dynamics CEO Scott Harrison was asked by The Wall Street Journal to comment on President Barack Obama's announcement yesterday that all vehicles purchased by the Federal government must be alternative fuel, including hybrid electric and electric, effective 2015. The Federal government operates a fleet of more than 600,000 vehicles, replacing 60,000 - 70,000 annually.

Mr. Harrison was also quoted in an extensive article on the President's announcement on the Bloomberg News wire. Both stories are below.

Sincerely,

AZD

Wall Street Journal:
Azure Sees Energy Plan Spurring Hybrid Vehicles

By Mike Ramsey

President Obama's promise to dramatically increase the U.S. government's purchasing of hybrid and electric vehicles represents a significant opportunity for companies pushing ahead with zero-emission vehicles, said Scott Harrison, chief executive of Azure Dynamics Corp.

Azure creates hybrid and all-electric powertrains and installs them into existing vehicle bodies made by Ford Motor Co. It produces the Transit Connect Electric commercial van as well as medium-duty hybrid delivery vehicles based on Ford's E450 chassis.

"It can't be overstated how important it is to us," Mr. Harrison said. "We have reasonable interest from the government and certainly the Department of Defense has some initiatives for non-tactical vehicles that fit our world. What has been lacking has been a uniformed vision, which this seems to resolve."

The president's announcement could speed the sales and ideally lower the costs of producing hybrid and all-electric vehicles. Companies including General Motors Co. and Nissan Motor Co., have released or plan to sell electric vehicles that could be used by the government.

Mr. Obama on Wednesday promised that the federal government will, by 2015, purchase only alternative-fuel vehicles, such as hybrid and electric cars. It is unclear how a mandate would be implemented across the federal fleet, which involves dozens of government agencies and a range of vehicle types from cars to heavy trucks.

Azure is planning to build about 700 hybrid vehicles and as many as 800 Transit Connect models this year. The company has estimated its revenue to be between $52 million and $68 million and Mr. Harrison said the company's orders to date are on track.

Azure, based in Oak Park, Mich., posted a loss of $10.8 million, or two cents a share, for the fourth quarter of 2010 compared to a loss of $8 million, or two cents a share, in the same quarter a year ago.

Mr. Harrison estimated that a sweeping government mandate to purchase hybrid vehicles or all-electric vehicles for the federal fleet, which stands at about 600,000 vehicles today, could translate into the potential for as many as 10,000 sales to Azure Dynamics.

"We see price breaks on volume at every 1,000 to 2,500 vehicles we make," he said. "When you start talking about 10,000 units, it has a snowball effect in terms of driving the price down."

Azure earlier this year announced an order for 600 hybrid-electric delivery vans from Purolator Courier Ltd. over three years.

Bloomberg:
Ford May Gain Most From Obama's Goal of Buying Only Green Cars

By Angela Greiling Keane

March 31 (Bloomberg) -- Ford Motor Co., the only major U.S. automaker to not receive a government bailout, may gain the most from President Barack Obama's push to require the government to buy only alternative-fuel vehicles by 2015.

The company's fleet and production plans will help it benefit as the U.S. ramps up purchases of cars and trucks that use fuels including electricity and natural gas, said Brett Smith, an analyst at the Center for Automotive Research. The General Services Administration, which owns about one-third of the federal government's fleet, said 49 percent of its vehicles already run on alternative fuels.

"Ford is very well positioned among the U.S. automakers for using the full technological basket," said Smith, who analyzes the market for alternative-energy vehicles at the Ann Arbor, Michigan-based research center.

As part of a plan to lower energy costs and increase the use of domestic power sources, the government should be buying only alternative-fuel vehicles within four years, Obama said in a speech yesterday in Washington. Those could include electric, hybrid-electric, natural-gas, clean-diesel and flex-fuel vehicles that use E85, a fuel that is 85 percent ethanol.

Ford, the first U.S. automaker to sell a gasoline-electric hybrid vehicle, has three hybrid vehicles and one electric plug- in on the market and plans to sell four more in North America by 2012, Susan Krusel, a spokeswoman, said in an e-mail. Ford plans to have seven E85 models, which can also use gasoline, in 2015.

Hybrids, SUVs

Ford last year passed General Motors Co. as the biggest vendor of vehicles to the U.S. government, partly on the strength of Obama administration purchases of its hybrid cars and sport-utility vehicles.

"Ford is a leader in this area, having invested billions in researching and developing new fuel-efficient products, alternative fuel options and electrified vehicles," Pete Lawson, Ford vice president of government affairs, said in an e- mail. Ford has four models that get at least 40 miles to the gallon, more than any other full-line automaker, he said.

The U.S. government has a fleet of about 600,000 vehicles, and buys 60,000 to 70,000 automobiles annually through the GSA.

The agency bought 406,679 vehicles in the past six fiscal years, or about $8.59 billion worth of cars, trucks, fire engines and ambulances, according to data obtained under a Freedom of Information request.

E85 Pumps

The government should avoid vehicles that use E85, because they can run on gasoline if the ethanol-based fuel isn't available, said Jim Kliesch, senior engineer for the Union of Concerned Scientists' clean-vehicles program in Washington.

"Flex-fuel vehicles are not a good solution unless you have pumps in place to fuel the vehicles," Kliesch said in an interview. "The president should make sure the fleet purchases aren't just packed with FFVs, to make sure they include a lot of hybrids and plug-ins."

The federal government should start with a pilot project to lease 100 electric plug-in vehicles, because the current purchase price is higher than what the government is allowed to spend, GSA Administrator Martha Johnson said at a Senate hearing yesterday.

The government's business will spur sales among companies and consumers by lowering prices for alternative-fuel vehicles as production and sales volumes increase, said Dick Cupka, Ford's commercial-vehicle sustainability program manager.

Volumes, Prices

"Showing government leadership with green fleets is a great way to get volumes up and prices down," said Roland Hwang, the San Francisco-based director of the Natural Resources Defense Council's transportation program.

Government use will help expand the alternative-fuel infrastructure, another element in consumer demand, Cupka said in an interview. Fueling infrastructure may include E85, compressed natural gas, hydrogen or clean diesel at fueling stations or electrical outlets for recharging plug-in vehicles.

"As more people buy the vehicles, there's more demand for the fueling stations," Cupka said. "It's a chicken-and-egg situation. More infrastructure leads to more customers and more customers lead to more infrastructure."

Other beneficiaries of the shift in government purchasing may include suppliers of components like electric-drive power trains, such as Azure Dynamics Corp.

"It's hard to overstate what 600,000 alternative-fuel vehicles would do for alternative power trains," Scott Harrison, chief executive officer of Oak Park, Michigan-based Azure Dynamics, said in an interview. The company, which supplies power trains for Ford's Transit Connect delivery van, in turn uses Johnson Controls Inc. to supply batteries and Borg Warner Corp. and Siemens AG for other components, he said.

Focusing on Electrics?

While Obama "talked about ethanol-powered vehicles and biodiesel" yesterday, the administration seems to be focusing on electric vehicles in the short-term, Mike Omotoso, senior manager of the global power train section of consultant JD Power & Associates, said in an interview.

Obama in his State of the Union address in January reiterated his goal of putting 1 million advanced-technology vehicles, such as plug-in and hybrid electrics, on U.S. roads by 2015. In his budget proposal in February, he called for ending a clean-diesel grant program and cutting research for hydrogen fuel-cell vehicles.

"If the ultimate goal is to reduce dependence on oil, whether the source be foreign or domestic, we should be looking at all kinds of vehicles, not just electric," Omotoso said.

Electric-car makers include Detroit-based GM. The company has 19 models that use alternative fuels, which may account for 40 percent of U.S. production this year, said Sharon Basel, a spokeswoman. By the end of 2012, GM wants 50 percent of the vehicles it assembles in its home market to use alternative fuels, she said.

Twelve of the Chrysler Group LLC's vehicles have engines that can run on E85 fuel, Vince Muniga, a Chrysler spokesman, said. Chrysler's goal is to have 50 percent of its fleet able to run on alternate fuels by the end of 2012, he said.

GM reorganized in bankruptcy in 2009 with $49.5 billion in government aid, while Chrysler got $12.5 billion in assistance for its reorganization that year.

Dear Friends of Azure,

2010-12-28T16:47:00.002-05:00

At Azure Dynamics (AZD) we are coming off a solid year of technology advancements, sales growth and improved awareness of our products and the benefits they offer in this increasingly green-conscious world. Johnson Controls' $6.3 million equity investment into AZD during the second quarter and the $4 million credit facility we obtained in the third quarter are strong endorsements of our strategy and product portfolio and will help provide added muscle to fund our working capital requirements going forward.

Our core strategy of technology, product, partners and people emphasis has resulted in solid bottom line sales, margin and revenue increases, and significant cost reductions. Our proven and adaptable technology allows AZD to move product to market quickly which is critical to maintain our first-mover advantage in a dynamic industry. Following are some of AZD's most significant highlights of 2010.

Sales:

At AZD we made our first move to commercialization in 2008 and we are extremely proud of our progress since then. In 2010 we continued our focus on the BalanceTM Hybrid Electric vans and shuttle buses with impressive sales and cost improvements.

In addition, we launched our Transit Connect Electric product program with a LEAD customer sales strategy. This LEAD customer program surpassed our initial sales projections with nearly 150 vans sold to a variety of who's who in our target market sectors -- delivery, utility, energy, businesses and governmental organizations. These companies are all critical to the increased acceptance and adoption of electric vehicles in North America and will ultimately become key advocates for the Transit Connect Electric product. During the year, we also added the European market to our Transit Connect Electric program. Europe's higher gas prices, familiarity with the Transit Connect and government incentives for green technology bode well for electric vehicle sales. AZD believes that once European sales start in earnest in mid 2011, they will quickly equal, or perhaps surpass, the North American sales.

Revenues:

Although the year isn't over and the final numbers aren't yet in, it's been a year of solid growth for Azure Dynamics. Revenues will be in excess of $20 million for 2010, more than double the previous year. In conjunction with our margin improvements and cost reduction program that was fully implemented in the second half of the year, this increase in revenues will give us our strongest year-end bottom line ever and will jump-start us for what we anticipate will be even more significant growth in both sales and revenues in 2011.

Product Technology:

Product technology and product excellence are our strong suits at Azure Dynamics. Our industry leading technology is flexible enough to be integrated into a whole range of applications and is the reason we were able to go from product concept to final product assembly on the Ford Transit Connect Electric in a remarkable 13 months. That's breakneck speed in the auto industry! But the Transit Connect Electric wasn't our only product focus in 2010...

• Transition to the Johnson Controls-Saft battery pack during the third quarter ensured that the Balance™ Hybrid Electric product included the latest lithium-ion technology as well as the other engineering updates aimed at improving reliability, durability and efficiency. The battery implementation was part of a broader cost containment plan that reduced the BalanceTM bill of materials by an eye-popping 40%.
• In addition to ongoing testing and validation on the BalanceTM Hybrid Electric and Transit Connect Electric products, we continued validation on the lithium ion battery and initiated a plug-in hybrid variant for the BalanceTM E-450.
• AZD's Force Drive™ technology was the power behind the winning entry in the prestigious international "X Prize" competition. Li-Ion Motors' Wave II, featuring Force Drive™ technology, earned first place in the highly competitive Alternative Side-by-Side class after performing in an intense multi-stage competition.
• In Europe, the Transit Connect Electric successfully completed the prestigious "Brighton to London Run - Future Car Challenge". The vehicle performed flawlessly in its first introduction to European media.

People:

We've often said that those who know Azure best are familiar with the importance we place on people - our employees, our customers and our partners. Just as you can judge a man by his friends, you can judge a company by its relationships, and ours are A-1.

Starting with our Board of Directors, we were delighted to welcome John Formisano as our newest member. John completed his distinguished career at Fed Ex Express as Vice President of Global Vehicles putting him at the top of one of the nation's largest and busiest vehicle fleets. John is also Chairman of the Board of CALSTART, a California-based organization formed to implement clean, efficient transportation solutions.

Our employees are our backbone and their continued tireless efforts have helped us to advance our technology portfolio while reducing costs and improving quality and performance. We can't say enough good things about them.

As mentioned earlier, our 2010 customers represent a who's who among North America's leading fleet operators - AT&T, Fed Ex Express, Purolator Courier, Southern California Edison, New York Power Authority, Cintas, Canada Post, United States Post Office to name just a few. Plus, Azure welcomed a slew of municipalities, universities and health care organizations that have added our BalanceTM shuttle bus to their respective transit fleets. And, of course, Johnson Controls, became a customer in 2010 - this in addition to its roles as both a supplier and investor in our company.

And speaking of partners, we couldn't ask for better ones. Our relationship with Ford Motor Company on the Balance™ Hybrid Electric products, and now on the Transit Connect Electric, is to our way of thinking a perfect example of how business partnerships should work. It is totally seamless, transparent and supportive. Ditto our relationship with Johnson Controls-Saft and with AM General, our newest partner now upfitting our Force Drive™ technology on to the Transit Connect.

We are grateful to each of these individuals and companies for joining us and enabling us to truly become Part of the Solution. We are at the leading edge of the green transportation movement in the significant commercial niche that will help to determine the shape of the transportation future. We think it's a good place to be, the perfect place, in fact, for a company like AZD.

Public Awareness

As our sales continue to increase and more operators are exposed to our products and what they can do, our on-the-street exposure multiplies as well. In addition, we've taken a number of steps to put AZD products in front of critical audiences.

• The Chicago Auto Show "coming out party" for the Transit Connect Electric was a home run of exposure to automotive analysts and journalists with Fox News calling the Transit Connect Electric "one of the most historic cars ever made." Transit Connect Electric's European unveiling at the Hanover (Germany) Auto Show brought new attention to this innovative vehicle across Europe.
• The Transit Connect Electric made a number of additional public appearances in 2010 including a series of demonstration drives for a variety of U.S. federal agency officials in Washington, D.C. We participated in a similar event for Canadian government officials in Ottawa this month. Transit Connect Electric was also featured in a display at the annual CALSTART Hybrid Truck User Forum (HTUF) conference in Dearborn, MI, and at the "Business of Plugging In" conference in Detroit where Michigan Governor Jennifer Granholm spent some time behind the wheel.
• AZD CEO Scott Harrison made two significant appearances on Canada's Business News Network during 2010 and was featured in a number of interviews including a recent one at the Reuters Automotive Summit. AZD products were featured in The New York Times, the Toronto Globe & Mail and literally hundreds of other print, TV and online publications throughout the world.

And in conclusion...

As we said earlier, from just about every angle, 2010 was a very good year for Azure Dynamics.

The economy is starting to come back and businesses are responding, looking at their needs and making purchase decisions they delayed during the recession. There are federal, state and local incentives available to help them do that. Our products are performing well in many of the hardest working fleets on the planet. Meanwhile, the move to green is getting greener and AZD products are ready with the answers that most fleets are looking for. We used the "down time" of the recession wisely and our technology and manufacturing are up and ready to go.

So we're almost there. We expect 2011 to be a banner year for our company and we expect 2012 to be even better. The stars are aligning and our promises are becoming deliverables.

We wish you all the happiest of holidays and a New Year that brings you only things you want. We are grateful for your partnership and appreciate your friendship and we look forward to achieving new heights together.

Sincerely,

The Azure Dynamics Team

Dear Friends of Azure,

2010-12-09T09:33:00.002-05:00

At a media event held yesterday at the AM General assembly location in Livonia, MI, Azure and its partners announced that the initial Transit Connect Electric (TCE) vans with Azure's ForceDrive drive train are on schedule and ready to ship as planned. The media guests were impressed with the partnerships' ability to bring the TCE to market just 13 months after the initial collaboration was announced. This speed to market underscored AZD engineering know-how and the flexibility of the ForceDrive EV powertrain.

As part of the event, Ron Iacobelli, chief technology officer, and Curt Huston, chief operating officer, discussed the TCE's technology and key drivers propelling the EV market in Azure's direction. NBC, ABC, and Fox affiliates, various radio stations and many print and on-line media journalists participated in the event. Following are a selection of print articles for your review.

New York Times: Ford Starts to Ship an Electric Delivery Van

Automotive Fleet: Ford & Azure Dynamics Mark Production and Delivery of First Transit Connect Electrics

Wall Street Journal: Ford Begins Shipping Electric Vans

Reuters: Ford, Azure Dynamics start electric van shipments

Oakland Press: Ford, Azure ship electric vans

Detroit News: Ford begins to ship all-electric Transit Connect vans

Auto Blog Green: Ford Transit Connect gets delivered in short order with help from Azure Dynamics

Sincerely,
AZD

Dear Friends of Azure,

2010-10-28T14:30:00.001-04:00

For those of you who missed the live broadcast of Scott Harrison's BNN interview this morning please click on the link below where Scott discusses the recent Transit Connect Electric contract with Canada Post as well as his views on the electric vehicle industry and Azure's role in it.

BNN Interview

Sincerely,

AZD

Dear Friends of Azure,

2010-10-28T10:12:00.001-04:00

Scott Harrison will participate in a BNN national interview this morning (Thursday, 10/28) at approximately 10:50 am (eastern time) to discuss the recent Transit Connect Electric sale to Canada Post as well as other Azure business updates.
Sincerely,

AZD

An Achievement for Electric Components and Powertrain Systems for Commercial Vehicles

2010-10-22T15:03:00.005-04:00

The Transit Connect Electric was presented to the U.S. Department of Energy officials, Vehicle Technologies Program, Clean Cities, and the staff of the Office of Energy Efficiency and Renewable Energy at DOE Headquarters. The vehicle was driven around L’Enfant Promenade and down Independence Ave. by several DOE staff. Representatives from Azure Dynamics and Johnson Controls provided DOE staff with the opportunity to experience a first generation commercial EV, and demonstrate improvements to components cost reduction, enhanced vehicle performance and assistance in the mass adoption of such vehicles.

Participating Drivers:

David Sandalow, EERE, Assistant Secretary forPolicy and International Affairs
Patrick Davis, VTP, Program Manager
Ed Owens, VTP, Supervisory General Engineer
Bryan Wynn, Electric Drive TransportationAssociation
Michael Mates, EERE, Advanced Technologies Vehicle Manufacturing Loan Program
Ken Howden, VTP, Combustion & EmissionControls
Shouvik Banerjee, VTP, Recovery Act Team
Kate McGibb, VTP, Recovery Act Team
Antonio Ruiz, VTP,Fuel Cells
Kristine Babick, VTP, Fuel Cells
Clean Cities staff

Transit Connect Electric Launches Ford European Electric Vehicle Program at The 2010 Hanover Commercial Vehicle Show

2010-09-21T10:04:00.001-04:00

Dear Friends of Azure,
Ford Motor Company introduced the Transit Connect Electric to the European market at the Hanover, Germany, Commercial Vehicle Show yesterday. We thought you would be interested in seeing the press release covering the announcement (see below).

- Transit Connect Electric debuts as Ford's first battery electric vehicle in Europe

- Spearheads five-model Ford electric vehicle launch plan by 2013

- Transit Connect Electric goes on sale in Europe in 2011

- Ford's electric vehicles partner - Azure Dynamics - to integrate proprietary Force Drive(TM) battery electric drive train in the Transit Connect Electric

- Johnson Controls-Saft selected as battery supplier for Transit Connect Electric

- All-new Ford Focus Electric follows in 2012, with Hybrid Electric Vehicle (HEV) and Plug-In Hybrid Electric Vehicle (PHEV) derivatives of the all-new Ford C-MAX to be launched in Europe in 2013, plus another Hybrid Electric Vehicle to be confirmed

Ford has today initiated its electric vehicles plan for Europe, with the debut of its Transit Connect Electric at the 2010 IAA Commercial Vehicle Show in Hanover, Germany.

Ford plans to introduce, for European customers, five full electric or hybrid vehicles across its light commercial vehicle, C and CD and ranges, by 2013.

The Transit Connect Electric is the first of these five vehicles to be introduced in Europe. A zero-emission, pure electric-powered version of the award-winning Transit Connect light commercial vehicle, it will go on sale in North America later this year and is due to become available in Europe during 2011.

The Electric derivative is based on a long wheelbase version of the successful Transit Connect, which was launched in 2003 in Europe and was introduced to the US in 2010.

Transit Connect Electric builds on Ford's relationship with its electric vehicles partner, Azure Dynamics, as well as their shared experience with battery supplier, Johnson Controls-Saft.

"We recognize an increasing interest in electrified vehicles and have an aggressive strategy to bring these vehicles to the marketplace," said Nancy Gioia, Ford director of Global Electrification. "Our work with Azure to create a pure electric battery Transit Connect vehicle will allow us to offer our commercial customers an additional option for environmentally advanced transportation."

The Transit Connect Electric is built on Ford's global commercial vehicle platform as part of the company's ONE Ford global product vision. It is the first of five electrified vehicles from Ford that will become available in Europe by 2013:

- Transit Connect battery electric van in 2011
- Ford Focus battery electric passenger car in 2012
- Ford C-MAX-based Hybrid Electric Vehicle (HEV) and Plug-In Hybrid Electric Vehicle (PHEV) in 2013,
- One further HEV vehicle to be confirmed for 2013.

Collaboration builds on existing business relationship

Ford's relationship with Azure Dynamics is already well established in North America and is now being extending to Europe.

In North America, Azure develops hybrid electric and electric drive technology, as the Balance(TM) Hybrid Electric, for shuttle buses and commercial trucks built on a Ford E-450 'cutaway and strip' chassis for the medium duty commercial vehicle segment.

Michigan-based Azure began work on its collaborative agreement to deliver the pure battery-electric powertrain for the Transit Connect in the U.S and Canada in October 2009. The extension of this collaboration into Europe is a logical next step.
"We're excited about the extension of the Transit Connect Electric program to Europe and understand that putting electric vehicles on the world's roads in significant quantities will be a long term proposition," said Scott T. Harrison, Azure Dynamics CEO. "However, with the Transit Connect Electric, Ford and Azure are doing their part in helping to lead that transition."

"The European Union and individual governments are keen to encourage adoption of electric transportation technology because they understand the potential benefits to energy infrastructure and to society at large," Harrison added. "We believe that European commercial vehicle customers will be eager to adopt the Transit Connect Electric into their fleets, to reduce vehicle emissions and demonstrate their commitment to becoming part of the solution."

Azure Dynamics will integrate its proprietary Force Drive(TM) battery electric drive train into the Transit Connect Electric, which will have a targeted range of 130 km or 80 miles minimum on a full charge and zero tailpipe emissions. Force Drive(TM) components have previously been deployed in more than 40 vehicle integrations and have more than 25 million miles of on-the-road experience. Transit Connect Electric will offer fleet owners the opportunity to eliminate the use of petrol and help to lower operating costs. The vehicle will be badged with both the Ford Blue Oval and Azure's Force Drive logo.

Azure Dynamics has selectedJohnson Controls-Saft to supply lithium-ion battery cells and battery packs for the Transit Connect Electric. Azure Dynamics and Ford both currently utilize Johnson Controls-Saft battery technology for other products. Transit Connect Electric will utilise the same proven cell technology currently deployed in the Ford Escape plug-in hybrid fleet that is already on the roads of North America.

Transit Connect commercial platform ideal choice for battery electric power

The Ford Transit Connect has achieved significant success since its launch in 2003, and was introduced to the North American market in 2010. With a unique combination of car-like driving dynamics, cargo capacity, accessibility and low purchase and operation costs, it is an ideal choice for electrification. Commercial vehicle operators often travel predictable, short-range routes with frequent stop and go driving in urban and suburban environments. For customers seeking sustainable mobility solutions, the Transit Connect Battery Electric Vehicle with Azure Force Drive(TM) will provide a zero emissions option.

The Transit Connect was designed, engineered and manufactured on a dedicated global commercial vehicle platform to beat tough commercial vehicle durability standards. A final manufacturing location for the Transit Connect Electric is yet to be determined.

Prototype Trials in Europe

Ford's Product Development team is participating in two specific European trial initiatives to demonstrate the technology in real world driving conditions, and generate feedback to help develop further the Focus Electric and the Transit Connect Electric for market acceptance in Europe.

In the UK, Ford is working with Scottish and Southern Energy (SSE), the London Borough of Hillingdon, and the University of Strathclyde on the UK's Ultra Low Carbon Vehicle Fleet Demonstration with a fleet of 21 prototype electric vehicles to collect data on their performance with a mixture of fleet and private users.

In Germany, Ford is working with RheinEnergie AG, the city of Cologne and the University of Duisburg-Essen on the ColognE-mobil program, using a fleet of 25 electric vehicles to conduct road testing. This program is part of a much larger research effort in several cities in Germany involving multiple automakers, utility companies, universities and technology partners.

"These initiatives are a revolution for both the utility and automotive industries," Stephen Odell, chairman and CEO, Ford of Europe said. "Collaborating across sectors is essential to ensure customer focused products that provide the right value along with the readiness of the infrastructure. We need to work and learn together and Ford is very pleased to be a part of these important trials."

Portfolio of Technologies

Ford Motor Company is committed to offering customers affordable environmental technologies in the vehicles they want and value.

"Ford is focused on solutions that reach not just hundreds or thousands of cars, but millions of vehicles - because that is how Ford can truly make a difference," Derrick Kuzak Ford's group vice president of Global Product Development said.

A key element of this approach is Ford's ECOnetic Technologies program, launched earlier in 2010. It is a customer-driven initiative bringing together a range of vehicle features and technologies specifically targeting better fuel economy, reduced emissions and overall lower cost of ownership, without compromising safety, driveability or performance.

This includes the new Ford EcoBoost global engine family featuring turbocharging and direct injection technology, Ford's ECOnetic range of low- CO2 technologies in Europe, and multi-speed transmissions such as Ford PowerShift.

In addition, Ford is developing and introducing a range of other environmentally focused features, including advanced electric power steering, weight reduction and aerodynamic improvements, plus biofuel-capable vehicles, hybrids and plug-in hybrids.

"Electrification is a key element in the effective use of Ford's global resources and talents to provide a portfolio of affordable and fuel-efficient technologies for customers," said Odell. "In particular our fleet trials in the UK and Germany will give us vital experience and insight into how fleet and private customers for these niche models will use them on a daily basis. This will ensure that the five models we bring to market are fully developed to meet their expectations."
# # #

For more information on how Azure Dynamics products are Driving a World of Difference, please visit www.azuredynamics.com.

The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.

About Azure Dynamics
Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF) is a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles. Azure is strategically targeting the commercial delivery vehicle and shuttle bus markets and is currently working internationally with various partners and customers. The Company is committed to providing customers and partners with innovative, cost-efficient, and environmentally-friendly energy management solutions. For more information please visit www.azuredynamics.com.

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 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.

Dear Friends of Azure,

2010-08-26T10:59:00.002-04:00

We wanted to share two recent media reports highlighting the progress of Azure’s collaboration with Ford on the Transit Connect Electric. The first was posted by a tough, experienced critic, Don Sherman of Automobile magazine. Mr. Sherman tested the vehicle in early August and submitted a lengthy review to Automobile which concluded: “After spending part of a day behind the wheel of the TC Electric, we'd conclude that the Ford and Azure Dynamics collaboration is an unqualified success. The electric systems are impressively well mannered, performance is commendable, and there's sufficient range to support the intended mission.” To read the article in its entirety please visit: Automobile Magazine.

The second article comes from David Welch at Business Week. Mr. Welch spoke with Azure COO, Curt Huston, at our headquarters in Oak Park and drove the vehicle. His report concluded: “Ford and Azure Dynamics, the company that engineered the electric drive system for the car, may be onto something.” It can be seen in Business Week in its entirety.

We continue to see positive results from our efforts and partnership with Ford on the Transit Connect Electric and look forward to upcoming announcements on our lead customers.

Thank you for your continued interest and support.

Sincerely,

AZD

Ford Set To Go Live With Electric Vehicles In Hillingdon

2010-07-09T09:43:00.000-04:00

Dear Friends of Azure,

Our colleagues at Ford Europe have recently published the below release concerning aTransit Connect Electric development program. We thought you might be interested.

Sincerely,
AZD

Brentwood, Essex, July 8, 2010- Ford's global electric vehicles plan is benefitting from participation in the UK Government's "Ultra-Low Carbon Vehicle Demonstrator" programme.

Ford's European electrification programme announced in March sees the introduction of two zero-emission full battery-electric vehicles, including the Transit Connect Electric light commercial vehicle in 2011, followed by the next generation Ford Focus Electric in 2012. A hybrid and a plug-in hybrid derivative of the all-new C-MAX, plus another hybrid-electric model will follow by 2013.

As a result, Ford will deploy a versatile people carrier version of the Transit Connect Electric for the UK demonstration programme, which is supported by Scottish and Southern Energy. This will see a fleet of zero emissions vehicles used by both the energy company and a number of drivers based in Hillingdon, Middlesex.

A consortium of Ford, Scottish and Southern Energy and Strathclyde University is providing the Transit Connect Electric 5-passenger vehicles and a charging infrastructure in and around Hillingdon during 2010 and 2011.

Ford Motor Company has been collaborating with Azure Dynamics (AZD) to launch the production of the Transit Connect Electric by Q2 of 2011. To accommodate the 5-passenger vehicle demonstration in Q4 of 2010, Ford and Azure have been able to increase the pre-production fleet to 21 vehicles from the original plan of 15. The pre-production vehicles will utilize the production-intent Azure Force Drive(TM) powertrain including the battery system from Johnson Controls-Saft (JC-S).

This programme will test vehicle and infrastructure technology ahead of the Transit Connect Electric going on sale in 2011. Originally it had been planned to use specially-built Battery Electric Vehicle (BEV) prototypes based on the current Ford Focus for the demonstration programme.

London residents will be among the first in Britain to experience Ford's zero emissions technology. Experienced drivers will be selected to take part in the programme and they will go through a rigorous familiarisation and training programme to ensure that useful data can be produced under safe, realistic operating conditions.

The Transit Connect Electric demonstration fleet is being developed partly with public funding from the UK Government's Technology Strategy Board (TSB), which promotes innovative industry-led projects that reduce CO2 while benefitting the country's transport system.

Joe Greenwell, Ford of Britain chairman, said: "There is increasing interest among our customers for electrified vehicles and we are responding by stepping up our efforts to bring these models to the marketplace alongside our latest-generation, fuel-efficient petrol and diesel powered models. Ford is looking forward to working with its project partners on developing this market for electric vehicles both in the UK and Europe."

The Transit Connect Electric
The Transit Connect Electric is a zero-emission, pure electric-powered version of the award-winning Transit Connect light commercial vehicle. It goes on sale in North America later this year and in Europe from 2011.

The Ford Transit Connect Electric features a state-of-the-art Li-Ion battery pack with a capacity of 28kWh and a chassis-mounted 55kW electric traction induction motor. It will have a range of up to 80 miles and a top speed of up to 75mph. Fully charging the batteries will take between 10 and 12 hours using a household 230 volt electricity supply.

Project managed in the UK
The demonstration programme is being led by the company's UK research and development centre at Dunton in Essex. Home to an engineering team of almost 3,000 vehicle specialists, Dunton Technical Centre is responsible for developing powertrains for all Ford vehicles in Europe, as well as every part of the company's commercial vehicle range.

Collaboration is key to Transit Connect Electric
Transit Connect Electric builds on the existing business relationship between Ford and Azure Dynamics. Oak Park, Michigan based Azure Dynamics develops hybrid electric and electric drive technology for shuttle buses and commercial trucks, such as the Balance(TM) Hybrid Electric, which is built on the Ford E-450 cutaway and strip chassis for the medium-duty commercial vehicle segment.

Azure Dynamics' proprietary Force Drive(TM) powertrain will be integrated into Transit Connect gliders in a yet to be announced city in Europe. Force Drive(TM) components have previously been deployed in more than 40 vehicle integrations and have more than 25 million miles of on-the-road experience.

Transit Connect Electric Technical Data
Battery Technology - Lithium Ion
Battery Capacity - 28 kWh
Charging time - 10-12 hours (from a domestic 230 V socket)
Electric motor - AC induction motor
Max Power - 55kW
Max Torque - 340 Nm
Top speed - 75mph
Range - 80 miles

For more information on how Azure Dynamics products are Driving a World of Difference, please visit www.azuredynamics.com.

About Azure Dynamics
Azure Dynamics Corporation (TSX: AZD)(OTX: AZDDF) is a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles. Azure is strategically targeting the commercial delivery vehicle and shuttle bus markets and is currently working internationally with various partners and customers. The Company is committed to providing customers and partners with innovative, cost-efficient, and environmentally-friendly energy management solutions. For more information please visit www.azuredynamics.com.

The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.

# # #

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.

Dear Friends of Azure,

2010-06-21T11:07:00.000-04:00

It's a busy time at Azure Dynamics. Following, for your information, are more updates on the company and our recent activities:

First of all, we hosted a successful Annual General Meeting on June 8th to discuss 2009 results and our strategic approach to 2010 and beyond. Scott Harrison's announcement of a $6 million investment from a wholly owned subsidiary of Johnson Controls was a highlight of the AGM. For the second straight year, we were proud to give shareholders the opportunity to experience our innovative products with a ride and drive - this time, it was the Transit Connect Electric. If you missed the meeting, it was recorded and can be viewed on our website under the "Investor" tab.

Speaking of the website, it's been completely re-done over the past several months and was just recently launched. The new site focuses on our products and all the compelling reasons why more fleets are acquiring them. In addition to an updated look and feel, the new site is easier to navigate and includes literally hundreds of technological upgrades. Please check it out at www.azuredynamics.com.

If you are among those who follow our announcements closely, you've probably noticed that Azure has announced the sale of more than 200 Balance(TM) Hybrid Electrics to more than 25 customers in the second quarter alone. We also announced that AM General will be our manufacturing partner for the Transit Connect Electric upfitting. The AM General announcement was picked-up by the Associated Press and appeared in hundreds of newspapers across North America. Finally, in another positive development with Ford, the Transit Connect Electric program has been expanded to include the European market which has potential to be an even bigger opportunity than North America.

Scott Harrison discussed these and other AZD business updates on a BNN interview aired nationally in Canada on June 10th. That interview can be seen at the following link BNN Interview.

We appreciate your continuing interest and support for Azure Dynamics. We continue to see positive results of our efforts and look forward to keeping the momentum through 2010 and beyond.

Sincerely,

AZD

Dear Friends of Azure,

2010-06-10T14:12:00.002-04:00

Azure Dynamics CEO Scott Harrison appeared on BNN this morning for a conversation on recent developments at the Company. The complete interview can be seen at the following link: BNN Interview

This was the most recent development in an already exciting week for Azure. The company hosted its Annual General Meeting on Tuesday and was pleased to connect with many of our loyal shareholders. In conjunction with the AGM, Azure announced a new Johnson Controls equity investment of approximately $6 million. A replay of the AGM webcast along with the Johnson Control press release can be found on our website at http://www.azuredynamics.com/

Sincerely,

AZD

Dear Friends of Azure,

2010-02-11T12:17:00.001-05:00

Transit Connect Electric continues to be a headline story from the Chicago Auto Show with over 80 articles appearing since yesterday's introduction.

Jeff Flock of Fox Business News said, "[Transit Connect Electric] was probably the biggest unveil of the show" during his nationally broadcast test drive of the vehicle. Watch the full test drive video here: http://video.foxbusiness.com/#/v/4012028/fords-first-all-electric-vehicle/?playlist_id=87185

Additionally the complete Transit Connect Electric press conference can be seen at the link here: http://cot.ag/byyTFv. If you only have a moment, watch Chapter 2 and Chapter 3 for Derrick Kuzak's, Ford Group Vice President Global Product Development, introduction of the vehicle and Scott Harrison's, Azure Dynamics CEO, discussion of the Transit Connect Electric capabilities.

Sincerely,
AZD

Dear Friends of Azure

2010-02-10T13:03:00.001-05:00

Transit Connect Electric was officially launched in front of hundreds of media gathered at a standing-room-only press conference held this morning at the Chicago Auto Show. Watch the video replay of the press conference on demand here: http://cot.ag/byyTFv।

Before introducing Azure CEO Scott Harrison, Derrick Kuzak, Ford Group Vice President Global Product Development, said, "To bring Transit Connect Electric to market so quickly, we teamed up with one of the best in the business, Azure Dynamics।"

Sharing the stage with Mark Fields, Ford's President of the Americas, and Jim Farley, Executive Vice President of Sales and Marketing, Mr। Harrison discussed the performance characteristics of the vehicle while photographers snapped images of the AZD branded prototype that had driven on stage moments earlier. The AZD logo was prominently displayed three places on the Ford Transit Connect Electric and Azure's "Force Drive(TM)" was the first thing seen under the hood.

Within hours of the reveal electronic articles began appearing on outlets like The New York Times, Wall Street Journal, Popular Mechanics, CNBC News, MSN, not to mention automotive, environmental and investor websites and blogs. Additional information on Transit Connect Electric and the press conference can be found on Ford's home page: http://www.ford.com/.

Thanks for riding along on this exciting day in furthering Azure's mission in 'driving a world of difference'. As always we appreciate your support.

Sincerely,
AZD

Dear Friends of Azure,

2010-02-09T13:21:00.000-05:00

Greetings from the Chicago Auto Show where Azure representatives are on-hand for the introduction of the Transit Connect Electric. As you may have read in the press release just sent, Azure and Ford Motor Company have partnered to create an electric version of Transit Connect, the 2010 North American Truck of the Year. The Transit Connect Electric with Azure's patented Force(TM) Drive technology utilizing a Johnson Controls-Saft (JC-S) supplied lithium ion battery has an 80 mile range and produces zero tailpipe emissions. The companies will unveil the product this week with a series of industry and media events, including:

-February 9th, 'Green Dinner': Held at the Museum of Science and Industry, Azure CEO Scott Harrison and Ford's Derrick Kuzak, Group Vice President, Global Product Development will present the Transit Connect Electric to the automotive and environmental media attending. This will be the vehicle's first public appearance.

-February 10th, Press Conference: Held at the Ford display inside the Chicago Auto Show, the Transit Connect Electric will be officially introduced with Scott Harrison participating in the unveiling.

-February 11th, Media Ride and Drives: Outside the convention center, Azure and Ford will offer Transit Connect Electric test drives to select media in attendance.

Azure received the contract to supply power to the Transit Connect Electric in late September 2009. Our Force Drive(TM) technology has over 40 different vehicle integrations and 25 million miles of on-the-road experience to its credit. Azure was able to leverage this experience to make the Transit Connect Electric a reality.

We are excited to deepen our relationship with Ford and JC-S and look forward to introducing our latest product offering to the commercial vehicle market.

Sincerely,

AZD

Friends of Azure Update

2009-11-06T13:32:00.000-05:00

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

# # #

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.

Friends of Azure Letter

2009-09-24T13:01:00.000-04:00

Dear Friends of Azure:

Recent press releases issued by the Michigan Department of Transportation (MDOT) and the Illinois Department of Transportation (IDOT) have triggered some confusion and a number of questions from many of you. Let me set the record straight.

First of all, the MDOT agreement is exciting and very good news for Azure, but not yet quite as good as the press release seemed to indicate. MDOT has approved a contract that would allow Michigan municipalities to order up to 50 Azure Balance(TM) Hybrid Electric buses over the next three years. We hope and expect that all 50 of the units will eventually be ordered. However, they have not been ordered yet. The agreement with MDOT sets a long-term price for the units so that state municipalities can order them as needs arise within their fleets. Our official Azure press release discussing the Michigan Department of Transportation contract will be sent momentarily.

IDOT announced its intention to order 31 Azure units. We are confident that we will realize these 31 orders, however, agreements are not yet finalized.

Both contracts are further validation that AZD has the products that communities and businesses across the country want and need. "It is exciting to make small hybrid buses available to Michigan transit agencies, given their savings in emissions and better fuel economy," said Sharon Edgar, MDOT administrator, Passenger Transportation. "This is exactly what Michigan transit agencies are looking for - a small hybrid transit bus, more efficient, better suited to their service needs. It's a new direction for transit systems everywhere in the nation and we have several Michigan agencies that are interested in obtaining one or more for their system."

That's music to our ears and we're hearing it more and more often from states and other organizations around the country. The attached press release announces the MDOT contract from Azure's point of view and summarizes some of the business opportunities where we are already in other states and municipalities.

We hope this answers any questions you may have on the recent announcements and on our continuing progress with the Balance(TM) Hybrid Electric product. We hope you're as excited about the future as we are. As always, we appreciate your confidence and support.

Sincerely,

AZD

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 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.

Dear Friends of Azure,

2009-06-22T10:26:00.003-04:00

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.

Dear Friends of Azure,

2009-05-06T19:00:00.000-04:00

At Azure, we have recently realigned our goals to capitalize on existing and new opportunities in the marketplace. As part of that realignment, Azure has renewed its effort to proactively communicate its market activities to interested audiences. In addition to our scheduled material announcements and press releases, we will showcase more of our relevant activities in our stated effort to "Drive a World of Difference".

Azure's internal corporate mission is to employ the Best People (we do), arm them with Tomorrow's Technology (check) and deliver Today's Solutions (well underway)! It is a privilege for all of us at Azure to take our Hybrid Electric and Electric Drive solutions to a growing market. Most recently we have noticed an amazing change in the market - now, with federal stimulus packages and aggressive green policies, there is a surge in interest in all of our 'Solutions' and we are prepared to deliver.

By offering proven vehicle solutions that significantly reduce operational costs and environmental impact with absolutely no loss in performance or reliability, we have what the market needs plus the partners and distributors to bring this technology to customers.

To that end, we are committed to distributing regularly scheduled business updates and relevant corporate and industry news in the form of newsletters, videos, webinars and other social media outreach as appropriate. In other words, you can expect to hear from us more often.

In the meantime, following is a glimpse of recent media activities that have helped raise awareness for Azure and its product solutions:

In the first quarter, a joint Azure and Johnson Controls-Saft press conference at the North American International Auto Show in Detroit attracted over 200 guests and resulted in more than 250 relevant media placements. Coverage of the announcement was included in prestigious outlets such as: The New York Times; Wall Street Journal; Automotive News; Green Car Journal as well as significant coverage in on-line news sources like MSN; CNN; AOL; Yahoo; and Forbes to name just a few.
Recent stories on other Azure developments from International Automotive Engineering, Popular Mechanics and Government Product News and can be viewed at:
http://www.sae.org/mags/aei/6143
http://www.popularmechanics.com/blogs/automotive_news/4307346.html
http://govpro.com/fleets/vehicles/Hybrid_Altoona_testing_9134/
Azure Dynamics was featured as the cover story for two publications: January 2009 Trailer Body and March 2009 Refrigerated Transporter.
On April 23rd, Scott Harrison, Azure Dynamics' CEO was honored by Lawrence Technological University and Grant Thornton LLP as the "Innovator of the Year" in the Annual Leaders & Innovators Award program! Scott was selected from a group of 46 industry leaders for the award. To read more about the award please visit: http://www.wwj.com/Azure-s-Harrison-Named-Leader---Innovator-Of-The-Y/4261046

On so many levels the world is changing and increasingly it seems to be sloped in Azure's direction. We're happy to have you with us. We know that you believe in what we are doing, so together, we will drive a world of difference!

Contacts:
Mike Elwood, Azure Dynamics, Vice President, Marketing, 905-607-3486 x203
Email: melwood@azuredynamics.com

Pat Liebler, Liebler Group, 313-832-4376
Email: pat@lieblergroup.com