Azure Dynamics Announces Re-Order from Metro Mobility

OAK PARK, MI, May 10 -- Azure Dynamics Corporation, continued its mission of 'Driving a World of Difference' by supplying nine additional Balance(TM) Hybrid Electric shuttle buses to Metro Mobility in Minnesota. Metro Mobility will now operate a fleet of 24 Azure Balance(TM) Hybrid Electric buses which will lessen its need for fuel while helping to improve air quality in the region. The buses will be delivered in the third quarter of 2010 and used in Metro Mobility's para-transit service.

The original purchase of Azure's Balance(TM) Hybrid Electric product in 2009 resulted from the Twin Cities Metropolitan Council's goal to increase usage of green technologies in the region. As the organization became familiar with the Azure product and experienced its benefits first-hand, it made the decision to acquire the additional units and expand its green fleet.

In the spring of 2009, the Metropolitan Council, which operates Metro Mobility, was awarded $70.4 million by the Federal Transit Administration (FTA) for metro-area transit projects, including the greening of its fleet. With a portion of this funding, Metro Mobility purchased 15 vehicles utilizing the Azure Balance System.

In the fall of 2009, Metro Mobility accessed $1.1 million in federal funds to purchase additional vehicles that would reduce greenhouse gas emissions. This second grant, via the FTA's 2009 Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER) program, was awarded and applied toward the Azure system.

"This is an archetypal sale for Azure in 2010," said Jay Sandler, Azure's Vice President of Sales. "Our technology, supported by a reputable Ford dealership and premier body vendor, was awarded a state contract in Minnesota. The initial sales to Metro Mobility gave the organization the opportunity to experience our product in their fleet operation. That experience validated our value proposition and, ultimately resulted in this substantial re-order.

"Meanwhile, the management at Metro Mobility has done an excellent job accessing available incentive funds to offset acquisition costs, so Metro Mobility winds up with state-of-the-art efficient and sustainable technology at highly competitive costs," Sandler concluded.

"In the current economic environment, sitting still simply isn't an option," said Scott Gretsch, Commercial Vehicle Sales at Hoglund Bus. "We've been aggressive in adopting alternative energy technology like that provided by Azure Dynamics. We're also active in helping customers navigate the various funding opportunities available to them. The end result, increased adoption of green technology, will be a benefit to all Minnesota residents and society at large."

The Azure Balance(TM) Hybrid Electric system specified by Metro Mobility has unique attributes like engine-off at idle and at below 20 miles per hour, while electronically supporting key ancillary functions like air conditioning, power steering and braking. The drive train, with a Ford 5.4L engine, can improve fuel economy by up to 40%, while reducing carbon emissions by up to 30% in city conditions. The hybrid drive train also offers a significant reduction in maintenance costs versus conventionally equipped competitors.

The Metro Mobility buses are equipped with a Turtle Top shuttle bus body that is configured with 8 ambulatory seats and 3 wheelchair positions.

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.

About Hoglund Bus and Truck

Over the past 60 years, with a commitment to customer satisfaction, Hoglund Bus and Truck has evolved as a leader in the transportation industry. Their two locations, Monticello, MN. and Marshalltown, IA, carry extensive inventories of new and used school buses, commercial buses, medium duty trucks, and related parts and services. Additional information is available site at www.hoglundbusandtruck.com.

About the Metropolitan Council

The Metropolitan Council is the regional planning organization for the seven-county Twin Cities area. The Council runs the regional bus and rail transit system, collects and treats wastewater, coordinates regional water resources, plans regional parks and administers funds that provide housing opportunities for low- and moderate-income individuals and families. The Council board is appointed by and serves at the pleasure of the governor.