National Press Release

    The Nashville Metropolitan Transit Authority for Paratransit Also Becomes
    Part of the Solution with Two Azure Shuttle Bus Orders

OAK PARK, MI, June 8 /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 that BlueCross(R) BlueShield(R) of Tennessee (BCBST) is contributing to the greening of the city of Chattanooga by providing BCBST employees with state-of-the-art green transportation services. Azure Dynamics Series CitiBus will enable BCBST to connect its employees at its new corporate headquarters to other destinations in downtown Chattanooga, which was the first city in the nation to have an all battery-powered downtown shuttle bus system providing free public transportation.

Elsewhere in the state of Tennessee, Azure announced two Balance(TM) Hybrid Electric orders from the Nashville MTA for its "Access Ride" program. The buses specified by the MTA are flexible enough to accommodate 12 seated passengers, six wheelchair passengers or a combination of the two.

The new 950,000-square-foot BCBST campus occupies the top of historic Cameron Hill in Chattanooga. BCBST is providing Azure's 19-passenger hybrid electric-powered shuttle bus to transport employees from their hilltop office campus to its other downtown offices as well as various locations in the city throughout the workday.

"Our new headquarters campus incorporates numerous attributes designed to reduce our energy usage and lessen our environmental impact, so the Azure Dynamics hybrid electric Series CitiBus is an ideal solution for our employee transportation needs," said Dan Jacobson, vice president of properties and corporate services at BCBST. "The new hybrid shuttle will help make the efforts of our 4,500 employees more productive and convenient. It's consistent with everything else we're doing to reflect sustainability in all of our operations."

"BCBST is focused on protecting the environment in its hometown, and we're delighted to be a part of the solution," said Scott Harrison, Azure Dynamics CEO. "The company needed a product that's efficient, flexible and environmentally friendly in start-and-stop city conditions without any sacrifice in performance or reliability. That's the perfect description of our Series CitiBus. We were also impressed that BCBST voluntarily spent additional funds to make the shuttle ADA compliant."

Chattanooga's Advanced Transportation Technology Institute (ATTI), a non-profit entity for alternative energy solutions, introduced the AZD bus to BCBST after seeing it at the Electric Vehicle Society-23 Expo in December 2007. "Our national role is to recommend transportation solutions that are environmentally progressive and cost efficient. The Series CitiBus fully meets those standards," said ATTI's Executive Director, Jim Frierson. "Our community, BCBST and its employees, and Azure are all winners in this project."

The Azure Series CitiBus has become a preferred shuttle for municipalities and public agencies across the country seeking cleaner and smarter transit options. BCBST is the first corporate customer in the nation for the innovative vehicle.

The Azure vehicle platforms, the Series CitiBus for BCBST and the two Balance(TM) Hybrid Electrics specified by Nashville MTA, increase fuel economy by up to 40% while offering up to a 30% reduction in greenhouse emissions. The buses also reduce maintenance costs by up to 30%. With its electric-launch assist, engine-off at idle and regenerative braking, the Azure products are ideally suited for the tough start and stop conditions endured by shuttle buses. As a result, Azure Dynamics customers can expect considerable benefits in terms of fuel efficiency and maintenance costs while also reducing their carbon foot print and improving air quality.

Mid-South Bus in Murfreesboro, TN is the distributor for the Chattanooga and Nashville buses. For more information on Azure Dynamics and its products, please visit us on the web at 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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    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