Azure Dynamics Announces Exercise of Over-Allotment Option

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OAK PARK, MI, Nov. 23, 2011 /CNW/ - Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF), a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles, announced today that the agents for its previously announced public offering (the "Public Offering") of 55,000,000 units (the "Units") that closed on November 18, 2011 exercised the over-allotment option and purchased 8,062,974 additional Units at $0.11 per Unit.

The gross proceeds to the Company resulting from the exercise of the over-allotment option were $886,927.14, for total gross proceeds from the Public Offering of $6,936,927.14.

The Public Offering was conducted through a syndicate of agents co-led by Raymond James Ltd. and Cormark Securities Inc. and includes National Bank Financial Inc.

Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant (each whole warrant a "Warrant").  Each Warrant is exercisable into one common share of the Company for a period of three years from November 18, 2011 at an exercise price of CDN$0.14 per share, subject to adjustment in certain circumstances.

The Company plans to use the net proceeds of the Public Offering to fund its ongoing product development as well as general corporate and working capital requirements.

About Azure Dynamics

Azure Dynamics Corporation (TSX: AZD)(OTC: 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 a variety of 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 Public Offering of Azure's securities and the use of proceeds from such offering. 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 labor 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 and the short form prospectus dated November 11, 2011, each of 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

For further information:

Juris Pagrabs, Vice President, Investor Relations, (248) 298-2403 ext 7570
Email: jpagrabs@azuredynamics.com

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Azure Dynamics Corporation

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