Transit Connect Electric Receives GSA Contract Award

Federal Agencies Now Authorized to Order Azure Dynamics' EV Van Directly From GSA 

• Transit Connect Electric named on 'indefinite quantity' GSA contract award allowing federal government agencies and US Armed Forces to order the pure electric, zero emission vehicles via Northside Ford in San Antonio, TX.
• The GSA award is a four year contract consisting of a base year and three one year options extending through August 31, 2014.
• The GSA estimates the potential value of the contract award over the four year period at more than $112 million.
• Transit Connect Electric can help federal agencies reach mandated fuel and emissions saving targets and help support President Obama's stated goal of one million electric vehicles on US roads by 2015.
• Transit Connect Electric, GSA program # GS-30F- X0073, is currently the only EV van with a GSA award.

OAK PARK, MI, June 8, 2011 /PRNewswire/ - Azure Dynamics Corporation (TSX: AZD) (OTC: AZDDF) ("Azure" or the "Company"), a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles, announced today that the Transit Connect Electric, the result of a collaborative effort between Azure and Ford Motor Company, has received a GSA Contract Award allowing U.S. government agencies, affiliated companies and military installations to purchase the innovative, efficient all electric van.

The 'Indefinite Delivery, Indefinite Quantity' (IDIQ) award is a four year contract consisting of a base year ending August 31, 2011 and three one year options, exercisable by the government, that extend the contract through August 31, 2014.  The GSA estimates the value of the contract over the four year period at more than $112 million.  The contract is administered through Brasada Ford LTD., (d/b/a Northside Ford) in San Antonio, TX.

"We are extremely pleased that the Transit Connect Electric has received the GSA Contract Award, which is the first and most important step for government-related vehicle fleets to purchase this innovative EV van," said Scott Harrison, Azure Dynamics CEO.  "As fuel prices continue to rise to near-record levels, the federal government's leadership in advancing alternative powered vehicles like Transit Connect Electric, will be critical to helping the government meet its goal of one million EV vehicles on the road by 2015," said Harrison.

GSA is an important instrument in support of the Administration's initiative that all new cars and trucks purchased by the federal government starting in 2015 will be hybrids, electric vehicles or other alternative-fuel vehicles.  The government operates a fleet of more than 600,000 vehicles, purchasing approximately 60,000 to 70,000 new vehicles annually.

GSA clearly points out that its estimated $112 million contract value over the four year period is neither an indication of future sales, nor a guarantee of actual sales.  This GSA award serves as a channel for potential future government orders.  Transit Connect Electric will be available through GSA beginning this month for immediate ordering.  Northside Ford will administer the sales and fulfillment activities associated with the GSA award.  Northside Ford has 18 years of history selling vehicles to the government.

"The government is aggressively supporting electric vehicles like the Transit Connect Electric," said Don Cote, Northside's Government Sales Director.  "The Ford Transit Connect Electric, offering low operating costs and zero tailpipe emissions, is a versatile product that can serve a myriad of government fleet needs in urban, suburban or campus environments.  It has great potential as a non-tactical van for work within the Armed Services."

A unique combination of car-like driving dynamics, substantial payload capacity and low operating costs are characteristics that make the Transit Connect Electric van an ideal choice for federal agencies looking to support federal mandates calling for the reduction of petroleum usage and decreased greenhouse emissions. 

For more information on purchasing Transit Connect Electric via the GSA Award, contact Don Cote, Government & Fleet Director at Northside Ford at (210) 477-3435.  The GSA contract number for the Transit Connect Electric program is GS-30F- X0073.

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

What is a GSA Contract Award?
GSA stands for the General Services Administration which is a centralized authority for the acquisition and management of federal government resources. GSA Contracts are indefinite delivery, indefinite quantity (IDIQ), long-term contracts under the General Services Administration's Multiple Award Schedule (MAS) Program. GSA Contract Awards were developed to assist federal employees in purchasing products and services, and contain pre-negotiated prices, delivery terms, warranties, and other terms and conditions. To view the Transit Connect Electric GSA Award go to:  https://www.fbo.gov/?s=opportunity&mode=form&id=f9c9e24ecf4be6616865a302bba1187d&tab=core&_cview=1

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 a variety of 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.

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Forward-Looking Statements Advisory

Certain information included in this press release 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 press release contains statements concerning Azure's anticipated: GSA Contract Award with Northside Ford for the Transit Connect Electric and the GSA's estimate of contract value of $112 million over a four year period, which is neither an indication of future sales, nor a guarantee of actual sales, 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 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. Additionally, Azure undertakes no obligation to comment on the expectations of, or statements made by, third parties about Azure. 

SOURCE Azure Dynamics Corporation