Azure Dynamics Balance(TM) Hybrid Electric Shuttle Bus - Sales Update

    -   Azure Dynamics announces 12 Balance(TM) Hybrid Electric truck and bus
        sales to a variety of customers across North America

    -   Azure continues a strong sales pace in Q2, 2010 with almost
        200 Balance products sold to more than 25 end users since April 1

OAK PARK, MI, June 28 /PRNewswire-FirstCall/ - Azure Dynamics Corporation's (TSX: AZD)(OTC:AZDDF) channel distribution strategy entails partnering with premier body builders and their dealers 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 have resulted in 12 more Balance(TM) Hybrid Electric shuttle bus sales as follows:

Five Balance(TM) Hybrid Electric shuttle buses were ordered by Western Piedmont Transit in North Carolina. These are the first Azure equipped buses that utilize shuttle bodies manufactured by Champion Bus Inc., of Imlay City, MI. The buses were sold by National Bus Sales and Leasing from an existing contract established in Texas (Houston and Galveston Area Contract).

Four Balance(TM) Hybrid Electric shuttle buses were sold via the Michigan Department of Transportation (MDOT) contract with two going to County Connection in Midland, MI and two to Roscommon County Transportation Authority in Roscommon, MI. These four buses closely followed the previously announced MDOT pilot unit sold to the City of Charlevoix. The MDOT contract allows for up to 50 Azure buses utilizing StarTrans bodies to be sourced through Midwest Transit Equipment, in Kankakee, IL.

One bus was sold to Tehachapi Valley Healthcare in California to operate as an employee shuttle for the health care district. It was the first Azure bus sold with a shuttle body manufactured by Glaval Bus of Elkhart, IN. AZ Bus Sales Inc., in Colton, CA, was the dealer and helped the client access California incentive funds.

"Our channel distribution strategy of partnering with premier body manufacturers and their dealers continues to build with these initial sales from Champion and one from Glaval Bus," said Jay Sandler, Azure Dynamics Vice President of Sales. "Azure is collaborating with the premier body manufacturers who control a large part of our target market. These most recent successes are an indication that our strategy is working very well."

Kingston Hospital in Kingston, NY, ordered a Balance(TM) Hybrid Electric shuttle bus with a StarTrans Body via Arcola Bus Sales and Service Corp in New Jersey.

Executive Coach Services in Etobicoke, Ontario purchased a bus to serve as a shuttle at an IKEA office complex there. The dealer, Capitol Coachworks, sold the bus which utilizes a Turtle Top Inc., body.

"Our sales team has been traveling across North America building relationships over the past several years," said Sandler. "It's rewarding to see the results of these efforts materialized in these sales.

"We're particularly pleased by the fact that our phones are now ringing with inbound sales opportunities as well. As more fleets experience our quantifiable economic and environmental return on investment, we're turning customers into advocates and our sales job becomes easier," Sandler concluded.

Azure's Balance(TM)Hybrid Electric drive system is 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.

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