Azure Dynamics and Collins Bus Sell First Hybrid Electric Type A School Bus



    OAK PARK, MI, Aug. 18 /CNW/ - The NAPA Valley Unified School District
(NAPA) in California has purchased the nation's first NEXBUS, the only hybrid
electric Type A school bus available in North America. NEXBUS is produced by
Collins Bus Corporation and features Azure Dynamics Balance(TM) Hybrid
Electric drive train which is considered an ideal application for the frequent
starts and stops, significant idle time and clean air needs of school service.
    Azure Dynamics Corporation (TSX: AZD) - ("Azure") or (the "Company") is a
leading developer of state-of-the-art green technologies that address
environmental and cost issues for the commercial transportation industry.
    "Our distribution strategy has been to partner with the best-in-class
vehicle providers," said Scott Harrison, Azure Dynamics CEO. "Collins is the
clear leader in the Type A School Bus market and has over 70 dealers
throughout the United States and Canada. Collins is aggressively supporting
the NEXBUS with our Balance(TM) Hybrid Electric technology which is a clear
indication that the product fulfills the customer's need and is poised to
extend Azure's momentum into the school bus market."
    NAPA Valley Unified School District was a likely recipient of the first
bus based on its long history of advanced technology and alternative fuel /
energy adoption. The district has won numerous environmental awards including
the first ever School Transportation News 'Green Fleet Award' in 2008.
    "We operate a number of Type A buses. Until now, those buses have all
been diesel because there just weren't alternative energy options in the
class," said Ralph Knight, NAPA's Director of Transportation. "We've only
recently taken possession of the NEXBUS, but we're already impressed. We like
the availability of variable seating to accommodate up to three wheelchair
positions and we're eager to reap the operational cost and environmental
benefits."
    NAPA plans to put the NEXBUS in use for special needs transportation
where it will have a busy schedule and the district can realize the full
benefits of the technology. "NAPA has previous experience with Azure
technology when we used Solectria's (Azure's predecessor company) full
electric drive technology on a larger bus. That bus ran for three and a half
years without a single down day, so we're hoping for similar success this time
around," said Knight.
    Collins has aggressively promoted the NEXBUS including at the recent
School Transportation News expo in Reno, Nevada where two of the vehicles were
shown with one bus offering ride and drive experiences to dozens of interested
school fleet managers. Additionally, the NEXBUS is the subject of a Collins
advertising campaign entitled, "Yellow Goes Green".
    Kent Tyler, President of Collins Bus Corporation said, "If the response
we received at the STN show in Reno is any indication, then we have a real
winner on our hands with the NEXBUS. Azure's Balance(TM) Hybrid Electric
technology makes all the sense in the world for Type A buses and we're excited
to bring this first offering to the school market."
    With over 40 years experience, Collins is the premier manufacturer of
small school buses in North America. The partnership with Azure allows Collins
to offer the proprietary Balance(TM) Hybrid Electric drivetrain as an option
on school buses built on Ford's E-450 chassis. School buses typically have
frequent starts and stops and significant idle time picking up and dropping
off children and while waiting in the queue. The Azure technology will help to
significantly reduce fuel usage and emissions under these conditions.
    Collins sells buses under both the Collins and Mid Bus brands in the
United States and as Corbeil in Canada. The company has a developed network of
distributors that serve its key markets and customers. The Azure technology
has undergone significant durability testing to be eligible for school bus
programs.
    The bus was delivered via A-Z Bus Sales, Inc in Colton, Ca. NAPA received
funding support from Prop 1B and from the Bay Area Air Quality Management
District.
    For more information on Azure Dynamics and its Balance(TM) Hybrid
Electric product, 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.

    
    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.




For further information:

For further information: Jay Sandler, Vice President - Sales, (248)
298-2403 x1205, Email: jsandler@azuredynamics.com; Patrick Liebler, Liebler
Group, (248) 229-4418, Email: pat@lieblergroup.com

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