Ford Set To Go Live With Electric Vehicles In Hillingdon

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,

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,

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,

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

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,

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

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.