Azure Dynamics Announces Restructuring



    Actions Designed to Rationalize Product Development, Reduce Costs

    OAK PARK, MI, Jan. 15 /CNW/ - 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, today
announced a restructuring and comprehensive cost reduction plan designed to
address the realities of today's economy and marketplace while meeting the
demand for tomorrow's most energy efficient commercial vehicles.
    The Azure plan includes an approximate 25% reduction in its current
workforce along with expected reductions in all discretionary expenses and a
focus on actions to offset recent component cost increases. In addition the
Company plans to further rationalize its product development efforts to focus
on existing products and is actively working with its customers on potential
new programs that involve sharing of development costs. Azure is also taking
steps to enable the Company to access low cost U.S. and Canadian government
loans supporting development of more fuel efficient vehicles.
    "Our restructuring recognizes the realities of today's economy and
marketplace. However, we believe these steps will also allow us to deliver on
our promise of tomorrow," said Scott Harrison, Azure's chief executive
officer. "We continue to maximize our Balance(TM) Hybrid Electric technology
and now offer a shuttle bus variant in addition to the delivery truck
application. We are currently addressing the telecom and utility markets with
our LEEP Lift product and we expect to continue to aggressively explore
opportunities in the electric vehicle sector. Although difficult, we believe
this restructuring better positions Azure to continue its focus on 'driving a
world of difference."
    Earlier this week, Azure announced a five year supply agreement with
Johnson Controls-Saft that will provide Azure with advanced lithium-ion hybrid
technology battery packs for use in its commercial vehicles. The agreement
will provide predictable deliveries of the packs thus eliminating previous
supply concerns and enabling Azure to consistently deliver significant fuel
savings and environmental benefits to its customers.
    For more information about Azure Dynamics and its family of hybrid
electric and electric commercial vehicles, please visit www.azuredynamics.com.

    About Azure Dynamics

    Azure Dynamics Corporation (TSX: AZD) (LSE: ADC) (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.
    For more information, please visit www.azuredynamics.com.

    
    The TSX and LSE Exchanges do 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: Ryan Carr, Chief Financial Officer, (248)
298-2403, Email: rcarr@azuredynamics.com; Pat Liebler, Liebler!MacDonald,
(313) 832-4376, Email: pat@lieblergroup.com

Organization Profile

AZURE DYNAMICS CORPORATION

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