National Press Release

OAK PARK, MI, June 2 /PRNewswire-FirstCall/ - 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 a partnership with Champion Bus. The agreement allows Champion Bus customers and dealers the option to select Azure's Balance(TM) Hybrid Electric Drivetrain System in Ford E-450 Shuttle Buses they order from Champion.

"With Champion, we add another significant and well-regarded builder in the bus body sector to our growing roster of distributors," said Jay Sandler, Azure Dynamics' Vice President of Sales. "Our relationship gives Azure added distribution and reach into the shuttle bus market while offering Champion access to our efficient and environmentally friendly technologies."

Champion ordered its first Azure Balance(TM) Hybrid Electric chassis last fall and has installed their Challenger Body on the product. The completed bus will be displayed at the upcoming Community Transportation Association of America (CTAA) Expo in Providence, Rhode Island during the first week of June. The CTAA Expo is one of the largest annual events for shuttle bus manufacturers and users.

"We're demonstrating our enthusiasm for the Azure technology by making it our featured product at the upcoming CTAA show," said John Resnik, President of Champion Bus. "We want to show a product that will excite the customers and separate Champion from the other vendors. We think we have that with the new Azure product."

With its electric-launch assist, engine-off at idle and regenerative braking, the Azure Balance(TM) Hybrid Electric is ideally suited for the tough start and stop conditions endured by shuttle buses. As a result, Champion customers that select the Balance(TM) Hybrid Electric can expect up to 40% improvement in fuel economy and up to 30% reduction in maintenance costs. Importantly, the hybrid drive train also reduces greenhouse emissions by up to 30% thereby reducing the owner's carbon footprint and improving air quality.

Champion Bus is a wholly-owned subsidiary of Thor Industries, Inc., a major builder of commercial buses.

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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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