Azure Dynamics ships record number of units in second quarter and makes progress on key sales initiatives

OAK PARK, MI, July 21 -- 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 that it shipped a record number of units during the second quarter and continues to gain traction on a number of key sales initiatives.

49 hybrid electric and 37 electric vehicle systems were shipped during the second quarter. Key deliveries were made to FedEx Express, AT&T, Pennsylvania Department of Transportation and several others.

In addition, a number of key sales initiatives are expected to contribute positively to Azure's performance in the second half of 2008, including the following:

  -   Production has commenced on the Company's largest order to date of
      105 Balance Hybrid Electric systems for Purolator Courier Ltd.,
      Canada's largest courier company
  -   Four dealers have recently been signed up as part of the Company's
      plan to sign approximately 50 dealers over the next year in major
      metro markets in the United States and Canada. This will broaden
      Azure's distribution network for its Balance Hybrid Electric medium-
      duty trucks
  -   New fleets with over 5,000 estimated annual commercial vehicle
      purchases are either currently engaged in an active product trial or
      demonstration for the Balance Hybrid Electric, or are expected to
      enter into one during the third quarter

Scott Harrison, Chief Executive Officer for Azure Dynamics, said "We are seeing unprecedented demand for each of our product lines and are encouraged by the significant number of trials underway with new customers that have major national fleets. Thanks to exceptional efforts by all of our associates, our Balance Hybrid Electric system launched this past May. Our product is performing well and we are providing exceptional value to our customers in the course of executing on our business plan."

About Azure Dynamics

Azure Dynamics Corporation (TSX: AZD) (OTCQX: AZDDF) 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.