National Press Release

OAK PARK, MI, May 6 /PRNewswire-FirstCall/ - Azure Dynamics Corporation (TSX: AZD) - ("Azure") or (the "Company"), a leading developer of innovative hybrid green technologies that address environmental and cost issues for operators of commercial vehicle fleets, announced today that five Balance(TM) Hybrid Electric trucks were ordered by the City of Toronto. The five trucks will be put into service in three different city divisions including the Library; the Parks, Forestry and Recreation Division; and Solid Waste Management Services.

"Azure Dynamics has a steadfast dedication to promoting sustainable living and driving a world of difference," said Scott Harrison, Azure Dynamics' Chief Executive Officer. "By deploying five Balance(TM) Hybrid Electric trucks, the City of Toronto continues to support a collective effort to improve the green footprint throughout Canada where the citizens value and appreciate their incredible natural resources."

The five trucks ordered by the City of Toronto will be used in some of the City's busiest departments. One unit will be utilized by the Library where an inter-branch delivery system will operate six days a week making approximately 10 stops a day. The Parks, Forestry and Recreation Division will use one vehicle for the delivery of sports equipment and recreational materials to community centers throughout Toronto and another vehicle for the delivery of live plants for special events held in Toronto at various public functions. Finally, two units will be used by Solid Waste Management Services for residential curb side pickup of 'white goods' which include refrigerators, stoves, washing machines, etc. to be taken to a dedicated recycling facility.

Azure Dynamics has developed the Balance(TM) Hybrid Electric drive system for Ford's E450 Cutaway and Strip Chassis trucks. The Balance(TM) Hybrid Electric drive system manages the conventional 5.4 litre Triton gasoline engine and the 5-speed automatic TorqShift transmission to produce a cleaner, more fuel efficient vehicle for a variety of business needs. The hybrid features electric-launch assist, engine-off at idle and regenerative braking which combine to improve fuel economy and reduce greenhouse gas emissions. The technology improves fuel economy by up to 40%, while reducing the carbon foot print by approximately 30%, creating a significant positive impact on the environment and air quality. In addition, Azure's Balance(TM) Hybrid Electric technology reduces vehicle maintenance costs by approximately 30% thereby further reducing the overall fleet operating costs.

The successful application of the Ford E-450 walk-in vans built with Azure's Balance(TM) Hybrid Electric drive train system is evident by the recent testing of the system in Altoona, Pennsylvania where it was validated for its durability and engineering integrity.

Sherway Ford in Toronto managed the transactions for the City of Toronto in conjunction with PK Vans of Oshawa, Ontario. The City of Toronto, Azure Dynamics and PK Vans are all active members of Electric Mobility Canada (EMC).

"The environment is a top concern for the citizens in Canada and the City of Toronto has set an excellent example of their ongoing commitment for cleaner, healthier living. With the partnership between Azure Dynamics and the City of Toronto, we are definitely moving in the right direction and doing what we can to make an immediate impact on our environment," said Pat Johnston, of PK Vans, manufacturer of the bodies on the five hybrid trucks.

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.

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

Forward-looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning Azure's business development strategy, projected commercial revenues and product deliveries.

The forward-looking statements are based on certain key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs, target market acceptance of Azure's products, current and new product performance, availability and cost of labour and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Azure can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with Azure's early stage of development, lack of product revenues and history of losses, requirements for additional financing, uncertainty as to commercial viability, uncertainty as to product development and commercialization milestones being met, uncertainty as to the market for Azure's products and unproven acceptance of Azure's technology, competition for capital, product market and personnel, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability of management and key personnel, and acquisition integration risk. These risks are set out in more detail in Azure's annual information form which can be accessed at www.sedar.com.

The forward-looking statements contained in this press release are made as of the date hereof and Azure undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Azure Dynamics Corporation