Transit Connect Electric Receives GSA Contract Award

OAK PARK, MI--June 8, 2011: 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.