First Mail-Delivery Van Converted to Hybrid

Postal Service Demonstrates Hybrid-Electric Technology

BOSTON, May 16 -- For more than 200 years, the U.S. Postal Service has been on the cutting edge in the development of every new mode of transportation in the United States. From the dash of the Pony Express rider, the daring of the early airmail pilot, or the rumble of the postal railway car, the Postal Service has been instrumental in the birth, growth, and development of a variety of transportation industries. And this year is no different.

At a ceremony today at the Boston General Mail facility, the Postal Service launched the first conversion of a mail-delivery van into a hybrid- electric vehicle.

"As an agency that delivers mail to 145 million businesses and households six days a week, drives approximately 1.1 billion miles a year, and consumes more than 125 million gallons of motor fuel annually, we are in a unique position to demonstrate to the public and other businesses the growing viability and positive environmental and energy-savings benefits of alternate- fuel technologies," said Walter O'Tormey, Vice President, Engineering, U.S. Postal Service. O'Tormey spoke to an audience of nearly 100 industry representatives, environmentalists, and Postal Service employees.

The hybrid-electric mail-delivery van will be monitored in regular service-delivering mail to Boston-area homes and businesses -- to determine its potential for emissions reduction and fuel-economy improvements. It was converted by Azure Dynamics Incorporated, Boston, a developer of electric and hybrid-electric powertrain systems. Based on the company's other hybrid applications, and depending on the vehicle and its duty cycle, Azure officials expect fuel-economy improvements to be in the range of 30 to 50 percent.

The Postal Service has been testing alternate-fuel vehicles for several years now. In fact, it operates the largest alternative-fuel fleet in the nation -- 30,000 vehicles. The fleet includes compressed-natural gas, propane, ethanol, biodiesel, and electric vehicles.

"We expect hybrid delivery trucks to significantly improve our nation's fuel economy and reduce our reliance on foreign oil," said O'Tormey. "That's why this innovation is so important to us, and why we want to share our experiences with the public."

Due to the size of the Postal Service network, every penny increase in the price of fuel costs the agency an additional $8 million a year.

"We will continue to manage the operation of our more than 200,000 vehicle fleet to maximize fuel efficiency and to keep mail-delivery costs as low as possible," said O'Tormey.

Representatives from Azure Dynamics were present at the event to assist in demonstrating how hybrid-electric technology works. "This event highlights the Postal Service's longstanding interest in supporting the development of alternative, cleaner, and more efficient power sources for their delivery fleets, and demonstrates their commitment and vision to be part of a long-term environmental solution," said Campbell Deacon, Deputy Chairman and Chief Executive Officer of Azure Dynamics. "We are proud to be a part of this Postal Service program and to be associated with this important event."

Since 1775, the United States Postal Service and its predecessor, the Post Office Department, have connected friends, families, neighbors and businesses by mail. An independent federal agency that visits more than 144 million homes and businesses every day, the Postal Service is the only service provider delivering to every address in the nation. It receives no taxpayer dollars for routine operations, but derives its operating revenues solely from the sale of postage, products and services. With annual revenues of $70 billion, it is the world's leading provider of mailing and delivery services, offering some of the most affordable postage rates in the world. The U.S. Postal Service delivers more than 46 percent of the world's mail volume -- some 212 billion letters, advertisements, periodicals and packages a year -- and serves seven million customers each day at its 37,000 retail locations nationwide.

Azure Dynamics Corporation

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's operations are based in North America and Europe. Azure is currently working internationally with various partners and customers, including Purolator Courier Ltd., Canada Post, United States Postal Service, Smith Electric Vehicles, Engineered Support Systems, Inc. and AM General LLC. Azure Dynamics Corporation is a public company trading on the TSX (AZD) in Canada and on the AIM (ADC) in the UK. For more company information, please visit http://www.azuredynamics.com/.