Azure Dynamics Showcases First Hybrid Electric CitiBus

VANCOUVER, Canada, December 9 -- Azure Dynamics Corporation (TSX: AZD & LSE: ADC) ("Azure Dynamics" or the "Company") a leading developer of hybrid electric and electric powertrains for commercial and military vehicles is pleased to announce the unveiling of its first hybrid electric CitiBus.

Azure's CitiBus was introduced yesterday at the Electric Drive Transportation Association ("EDTA") annual conference being held this year in Vancouver, British Columbia. B.C. Environment Minister Barry Penner attended the unveiling of Azure's CitiBus.

"It's great to see Azure's innovative research and development efforts become a reality. The Azure CitiBus helps our environment by significantly reducing emissions while substantially improving fuel efficiency," Penner said. "It also fills me with a sense of pride to know that this technology was developed here in British Columbia."

Azure announced the launch of its shuttle bus program on July 21, 2005 with the sale of five hybrid electric, 20-passenger shuttle buses to The Bronx Overall Economic Development Corporation ("BOEDC"). Azure's hybrid electric CitiBus will employ the same chassis and hybrid electric drive system currently used in delivery vans supplied to other Azure customers such as Purolator Courier Ltd. The hybrid chassis is fitted with a conventional shuttle bus body.

Photos of the hybrid electric CitiBus and visit from Minister Penner will be available on the Company's website at:

http://www.azuredynamics.com/about_azure.htm

Azure Dynamics Corporation is a world leader in the development and production of hybrid electric and electric commercial and military vehicles and systems. The group estimates it has over 25 million miles of vehicle experience. Azure Dynamics' operations are based in North America and Europe.

Azure Dynamics is currently working internationally with various partners and customers including Purolator Courier Ltd., Canada Post, US Department of Defense, United States Postal Service, SEV Group Limited, Leyland Product Development and London Taxis International. Azure Dynamics Corporation is a public company trading on the TSX (AZD) in Canada and on AIM (ADC) in the UK. For more company information please visit www.azuredynamics.com.