Azure Dynamics signs new Sales & Service agreements with Ford dealerships

OAK PARK, MI, Aug. 14, 2008 -- Azure Dynamics Corporation (TSX: AZD, LSE: ADC & OTCQX: AZDDF) - ("Azure" or the "Company"), a leading developer of hybrid electric and electric powertrains for commercial vehicles, announced today it has signed Sales & Service agreements with two additional Ford dealerships: Northside Ford in San Antonio, TX and Carmenita Ford in Los Angeles, CA.

"These additional dealerships are exceptionally well-suited to represent Azure. They boast deep roots in the markets they serve, together with long standing relationships with customers in the local, state and federal government," said Jay Sandler, Azure Dynamics' Vice President of Sales.

"Moreover, as we continue to grow our dealer business, we have been seeking an experienced sales executive to support our team and provide strategic counsel and we've found that with Ray Crews," continued Sandler.

Ray Crews, a former Ford Motor Company Commercial Fleet Sales Manager, will be assisting the Azure sales team in its effort to enroll Ford dealerships in key markets across the United States. Crews retired from Ford in 1999 as the Commercial Fleet Truck Sales Manager for North American Fleet Operations. Prior to that, he served as the National Fleet Sales Manager for the Ford Heavy Truck Division.

The new dealership agreements are part of Azure's effort to enlist approximately 50 dealers over the next year in major metro markets in the United States and Canada to broaden its distribution network for its Balance(TM) Hybrid Electric Vehicle. The dealerships will maintain inventory of ready to deliver Cube Vans and Walk-in Vans equipped with Azure's Balance(TM) Hybrid Electric powertrains. These two newly signed dealerships are located in the high volume markets of San Antonio and Los Angeles.

The Balance(TM) Hybrid Electric system is integrated on Ford's E450 Cutaway and Strip Chassis drive system utilizes a conventional 5.4 liter Triton gasoline engine and the 5-speed automatic TorqShift transmission. The hybrid powertrain features electric-launch assist, 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 powertrain can improve fuel economy by up to 40%, while reducing carbon emission by up to 30% in city conditions.