Azure Dynamics Receives Record 600 Unit Balance(TM) Hybrid Truck Order Via Its First Multi-year Contract With Purolator

Purolator places record order for 600 Balance^TM Hybrid Electric units to be delivered over the next three years at 200 units per year. Purolator will operate the world's largest fleet of Azure's Balance^TM Hybrid Electric vehicles with 955 units, including the 2011-2013 deliveries Azure Dynamics Corporation is the world's #1 provider of hybrid electric powertrain solutions in the medium duty commercial hybrid truck market where it controls approximately 60% market

OAK PARK, MI, Jan. 17 /PRNewswire/ - Azure Dynamics Corporation (TSX: AZD)(OTC:AZDDF), a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles, today announced that it has received a record 600 unit order from Purolator.  The order is the single largest order of hybrid electric technology for Azure Dynamics.  200 units will be delivered in 2011 with an additional 200 units scheduled in both 2012 and 2013, subject to annual authorizations by Purolator.    

"Purolator continues to be our largest volume customer and consistently demonstrates a strong commitment to the environment by adding cleaner, greener Azure vehicles to its fleet," said Scott Harrison, Chief Executive Officer of Azure.  "As a result of our long and mutually beneficial relationship with Purolator, our Balance^TM Hybrid Electric volume has consistently increased allowing us to reduce internal costs, refine our processes and implement product upgrades.  Meanwhile, Purolator's proactive fleet managers have been able to substantially reduce tailpipe emissions, operating costs and improve overall efficiency of their fleet.  This relationship is a manifestation of what will ultimately drive hybrid electric and electric powertrain market share increases."

"Purolator is proud to invest in the environmental welfare of Canada," said Serge Viola, Director, Fleet and Ground Line Haul for Purolator.  "Still, environmental stewardship requires a balance with customer satisfaction objectives that require predictable, on-time deliveries.  We have extensive experience with the Azure product and continued confidence that the vehicles can perform well and meet the requirements of our hard working fleet."

The initial allotment of 200 units will be built and delivered primarily in the third and fourth quarters of 2011 and will be delivered to Purolator facilities across Canada.  All units will include the Balance^TM Hybrid Electric second generation architecture characterized by the Johnson Controls-Saft lithium ion battery plus many other upgrades designed to improve efficiency, reliability and durability.  As a result, the Balance^TM Hybrid Electric can improve fuel economy by up to 40%, while reducing carbon emissions by up to 30% in city conditions. The drive train also offers a significant reduction in maintenance costs versus conventionally equipped competitors.  

"Considering Purolator's extensive real-world experience operating our Balance^TM Hybrid Electric product in its fleet, this order is an especially rewarding product validation," said Harrison.  "This order is also our first multi-year order in the hybrid electric truck market and helps us to build a predictable product backlog." 

Purolator operates a fleet of 3,500 vehicles and is consistently rated as one of Canada's most admired corporate cultures.  In 2005, Purolator was the first express transportation company in Canada to introduce hybrid electric vehicles.  Among the many Purolator locations receiving new hybrid electric vehicles, 43 have been added to the Halifax and Dartmouth fleet, making Purolator's City of Halifax fleet 100 per cent hybrid electric. An additional 60 Balance^TM Hybrid Electric vans have been added in Guelph, while 19 have been added in Niagara, and finally, 79 in the Greater Toronto Area.

The Azure Balance^TM Hybrid Electric vehicles ordered by Purolator are integrated on a Ford E450 chassis with a Ford 5.4L gasoline engine. The hybrid electric drive train features unique attributes such as engine-off at idle and below 20 miles per hour, while electronically supporting key ancillary functions like power steering and braking, is ideally suited for commercial activity in urban environments.

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)(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.

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

About Purolator
Purolator of Mississauga, Ontario is proud of its Canadian heritage. As Canada's largest courier company and one of Canada's 10 Most Admired Corporate Cultures^TM (2009), Purolator is committed to its customers and over 12,500 employees, including more than 3,500 couriers. From automated solutions to 24 hour pick up and delivery, Purolator provides customers with the services and customized solutions required to get their shipments across town or around the world. Purolator operates Canada's largest dedicated air express fleet and has an extensive service network, with over 140 operations locations, over 140 Shipping Centres, over 550 Authorized Shipping Agents and more than 350 drop boxes.

Purolator has also implemented a company-wide Quality Leadership Process that provides the necessary framework for continuous improvement and operational excellence. As part of its commitment to helping alleviate hunger, Purolator also works closely with Food Banks Canada. Since 2003, Purolator has helped collect more than three million pounds of food for local food banks across Canada. For more company information please visit www.purolator.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 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