Azure Dynamics Balance(TM) Hybrid Electric Sales Update

    -  Azure Dynamics announces 16 Balance(TM) Hybrid Electric van and bus
       sales to customers across North America

    -  These sales demonstrate the effectiveness of Azure's channel
       distribution strategy and network of premier body builder and dealer
       partners

    -  As Azure sales pace accelerates, the Company will aggregate sales
       announcements into periodic updates

OAK PARK, MI, April 22 /PRNewswire-FirstCall/ - Azure Dynamics Corporation's (TSX: AZD) (OTC:AZDDF) channel distribution strategy entails partnering with premier body builders and Ford commercial truck dealerships across North America to help market its innovative, efficient and green technology to fleet operators. Azure today announced that those relationships, cultivated over the past several years, have resulted in 16 new Balance(TM) Hybrid Electric van and bus sales as follows:

Five Balance(TM) Hybrid Electric delivery vans were sold to Domestic Uniform Rental and will be deployed in California. Azure technology has been approved by the California Hybrid Voucher Incentive Program (HVIP) and the California Air Resources Board (CARB) and can qualify for a total cash incentive of up to $30,000 on the first purchase and $25,000 on additional units. Domestic Uniform will take advantage of these incentives to help offset the premium for the hybrid electric drive train. Morgan Olson will produce the bodies for these buses which were sold through Santa Margarita Ford, in California.

Three additional Balance Hybrid Electric shuttle buses were sold to the City of Paducah, Kentucky. These sales result from an existing contract with the State of Kentucky that was first announced by Azure in August, 2009. The contract was awarded to National Bus Sales and Leasing, Inc of Marietta, GA with Goshen Coach shuttle bus bodies and Azure Balance(TM) technology. The Kentucky contract bid was for a maximum of 50 vehicles with the sales to the City of Paducah representing 13 total orders consumed to date.

The City of Charlevoix, Mi purchased one bus as part of a contract award from the Michigan Department of Transportation (MDOT) that was announced in September, 2009. Like many bid contracts, MDOT required a pilot unit to be built to contract specifications for review. The Charlevoix unit serves as that pilot and paves the way for additional orders to be realized from the contract that allows for up to 50 total buses. The MDOT contract was sourced through Midwest Transit Equipment, in Kankakee, Illinois utilizing StarTrans bodies.

Atlas Bus Sales, Inc sold Wisconsin's first Balance(TM) Hybrid Electric to Bay Area Rural Transit in Ashland. Bay Area Rural Transit's concerns over the cold-weather performance of the system were put to ease based on the large number of Azure units already operating successfully in extreme cold weather climates in Canada and in northern states in the U.S. The bus was sold from the Wisconsin Department of Transportation contract and utilizes a StarTrans bus body.

Two buses were sold to the City of Littleton, Colorado through Intermountain Coach in Colorado Springs. Intermountain had recently sold its first two Azure products to municipalities in Wyoming and shortly thereafter completed the contract with Littleton. Sales to Wyoming and Colorado showcase that Azure products are not only going to busy urban centers, but are also being adopted in more rural locations that value air quality and fuel efficiency. Goshen Coach, of Elkhart, Indiana will supply the bodies for the Littleton purchases.

The Cities of Tarrytown and Hastings, New York both purchased a bus as a result of the CALSTART contract announced in July, 2009. This is the fourth and fifth sale realized from the contract with StarTrans Bus and Azure that is administered by the Hybrid Truck Users Forum's (HTUF) Small Hybrid Bus Working Group. The buses have 23-foot StarTrans bodies with a passenger capacity of up to 14 riders and up to two wheelchair positions.

One cube van was sold to the University of British Columbia via Freedom Ford Sales in Edmonton, Alberta and International Truck Body in Surrey, BC. University of British Columbia will use the van in its library system to help transport materials between locations while protecting the pristine air quality on its campus.

Finally, North Central Bus Sales in St. Cloud, MN recently sold a Balance(TM) Hybrid Electric product to a regional transit authority.

"Each of these sales demonstrates advancement in our full technology commercialization effort," said Jay Sandler, Azure's Vice President of Sales. "We've developed partnerships with body manufacturers and dealers that are among the best in the business. As those relationships grow, and as more and more businesses are seeking environmental solutions for their vehicle fleets, we're seeing more demand and increased sales opportunities for our products.

"The Azure product offers a quantifiable economic and environmental payback and is proving reliable within fleets as demonstrated by our exceptional uptime. Meanwhile, as volumes increase and we refine our supply chain, we are reducing costs and improving margin. And, our distribution strategy is aggressively taking our product to market," Sandler continued.

Azure's Balance(TM) Hybrid Electric drive system is the result of its collaborative effort with Ford Motor Company to offer an alternative energy drive train solution integrated on the market leading Ford E-450 chassis. The Balance(TM) Hybrid Electric drive system manages the conventional 5.4 litre Triton gasoline engine and the 5-speed automatic TorqShift transmission to produce a cleaner, more fuel efficient vehicle at an affordable cost.

With the addition of these sales, the Balance Hybrid Electric has sales penetration into 19 U.S. states plus the District of Columbia.

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.

SOURCE Azure Dynamics Corporation