Azure Dynamics Announces Eight CitiBus Sales to Howard County

OAK PARK, MI, Sept. 30 -- Azure Dynamics Corporation (TSX: AZD) - ("Azure") or (the "Company"), a leading developer of state-of-the-art green technologies that address environmental and cost issues for the commercial transportation industry, today announced that its dealer, Colonial Equipment Co., has been awarded a bid with Howard County, Maryland for 25 of the Azure CitiBus(TM). Howard County Transit immediately ordered eight buses from the bid and has a year-long option to place orders for the remaining 17 CitiBuses. Colonial Equipment, which managed the sale to Howard County, is an authorized General Services Administration (GSA) supplier which has partnered with Azure Dynamics to deliver transportation solutions eligible for Stimulus Package funding.

"Many regional transit authorities are seeking affordable, eco-friendly transportation solutions that accommodate both seated and wheelchair passengers," said Jay Sandler, Azure Dynamics VP of Sales. "Our CitiBus(TM) has a wheelchair lift in the rear right corner and offers flexible seating configurations based on the immediate needs of the passengers."

Sandler continued, "We're also pleased with our growing relationship with Colonial Equipment. Together we are working to provide our mutual customers with environmentally friendly transportation solutions that are eligible for stimulus funding."

According to Colonial Equipment, customers have been attracted to the Azure CitiBus' ability to achieve up to 40% improvement in fuel economy, a 30% reduction in maintenance costs and a 30% reduction in greenhouse emissions.

"We're seeing increased interest for alternative fuel and environmental friendly vehicles from customers at the Federal Government level all the way down to small, private companies," said Don Combs, President of Colonial Equipment. "Green technology is very important for proactive fleet managers, so Howard County's selection of Azure's CitiBus(TM) is a natural."

Azure Dynamics and Colonial Equipment previously partnered on GSA CitiBus(TM) sales for two units to the Smithsonian Institution in Washington D.C. and a third CitiBus(TM) to the United States Air Force Academy in Fort Collins, CO. These buses were sold in 2008 and are now in active service for the respective fleet operators.

Howard County, Maryland includes the cities of Columbia and Laurel and is within a half hour drive to both Baltimore and Washington D.C. The County was the first in the state of Maryland to establish an "Office of Sustainability" and has a focused dedication to green solutions.

Colonial Equipment recently moved into a new headquarters facility that includes significant environmentally friendly attributes. The new facility is located at 5171 Intercoastal Court, Monrovia, MD, 21770.

AZD has developed the hybrid electric CitiBus(TM) using the HD Senator bus body manufactured by Supreme Corporation's StarTrans Bus Division for paratransit and shuttle bus customers. The CitiBus(TM) is an environmentally responsible solution that reduces fuel consumption and harmful emissions thereby making it an attractive alternative to conventional buses. The CitiBus(TM) has completed the Altoona 200,000 mile, seven-year durability test and meets the requirements for most Federal and State stimulus programs.

For more information about Azure Dynamics and its products, please visit www.azuredynamics.com.

About Azure Dynamics

Azure Dynamics Corporation (TSX: AZD) 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.

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