Azure Dynamics Announces Executive Management Team Changes

TORONTO, Canada, September 21 -- Azure Dynamics Corporation (TSX: AZD & LSE - ADC) ("Azure Dynamics" or the "Company"), a leading developer of hybrid electric powertrains for commercial and military vehicles is pleased to announce the following changes to its executive management team, with immediate effect.

Mr. David E. Deacon, Deputy Chairman and Executive Vice President, with responsibility for the Company's sales and marketing operations, will take on the additional responsibility of Chair of a strategic committee of the Board. This committee has been established to develop opportunities for strategic value enhancement.

Mr. John J. Mulcair, formerly President and Chief Operating Officer, is appointed Chairman of the Azure Advisory Board. Mr. Mulcair will apply his considerable experience in the industry to support ongoing strategic partner and supplier negotiations. In addition, he will lead a restructured Advisory Board whose mandate is to provide support to the Company as it transitions to commercial production. Dr. Nigel Fitzpatrick, one of the founders of Azure Dynamics, will continue his significant contribution to the Advisory Board as Vice Chair.

Mr. Gregory P. Francis has been appointed President and Chief Operating Officer of the Company. Mr. Francis, formerly Senior Vice-President, Finance and Chief Financial Officer, has served the Company since September 2001 and has been involved in all aspects of its development since that time, including financing, strategy, and business development. He has lived and operated internationally and is experienced in the business and financial aspects of multi-site, cross-border international organisations.

Mr. Ronald V. Iacobelli will continue as Senior Vice President, Development and Operations with specific responsibility for the Company's engineering resources, product development, and supply chain activities. Mr. Iacobelli's experience includes exposure to all types of automotive systems with emphasis on quality management, manufacturing operations, process development and supply chain management.

Mr. Daniel P. Renzella is appointed to the position Vice President, Finance and Chief Financial Officer. Mr. Renzella, formerly Vice-President, Finance of Azure, has over 18 years of experience managing the finance, administrative and MIS functions of companies in the electronics manufacturing and aerospace industries.

D. Campbell Deacon, Deputy Chairman and Chief Executive Officer, said, "Azure Dynamics has made significant strides in the last 18 months and is now poised to capitalise on those past endeavours. We are fortunate to have an excellent blend of youth and experience in our management team and these changes are designed to ensure that the skills that we have are appropriately focussed on the tasks at hand, and in particular, achieving stable commercial production while enhancing our strategic industry position and extracting value from our established intellectual property base."

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.

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

Steven Glaser, Vice-President, Corporate Affairs, +1-416-367-0220 ext 105