U.S. Postal Service Tests Azure Dynamics Vehicle



    OAK PARK, MI, Aug. 26 /CNW/ - 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 its Balance(TM) Hybrid Electric
vehicle is the newest addition to the United States Postal Service fleet
(USPS). USPS operates the largest civilian vehicle fleet in the world with
over 220,000 vehicles traveling more than 1.2 billion miles a year. USPS
consistently looks for opportunities to reduce the environmental impact of its
fleet while also lowering operating cost, and is testing the Azure product to
advance both efforts.
    "USPS is the only federal agency with a dedicated Office of
Sustainability," said Scott Harrison, Azure Dynamics CEO. "The organization
has demonstrated its strong commitment to sustainability by publicly stating
its goal of decreasing petroleum usage by 20% over the next five years while
also lessening its environmental impact. Our Azure Balance(TM) Hybrid Electric
can be instrumental in helping USPS achieve these goals."
    The Azure product, a Balance(TM) Hybrid Electric two-ton step van, will
actively participate in the USPS fleet in Long Island, New York for a twelve
month pilot program. The vehicle utilizes Azure Dynamics hybrid electric drive
train on the Ford E-450 chassis with a Morgan Olson body. Boyer Ford Truck
Sales delivered the vehicle.
    A key strategy of the Postal Service's Supply Management organization,
the Green Purchasing Program incorporates evaluation of "environmentally
preferable" products into purchasing decisions-along with price, quality and
delivery standards. The USPS Green Purchasing Program was aided by the recent
addition of $130 million in federal stimulus funds and in 2008 spent over $88
million in the acquisition of environmentally preferable products.
    "The Postal Service is taking the lead in reducing the environmental
footprint that results from visiting every home and business in America every
day," said Sam Pulcrano, USPS Vice President, Sustainability. "This new
vehicle will join 30 other Azure Dynamics pure electric step vans currently
delivering mail in Manhattan and the Bronx, as part of a test of alternative
fuel technology."
    "Azure technology is proven to offer significant cost and environmental
efficiencies for the commercial delivery truck market. Continuing our work
with the agency that delivers nearly half of all the world's mail remains an
important opportunity for Azure," said Curt Huston, Azure Dynamics Chief
Operating Officer. "Our family of innovative hybrid electric products can
improve fuel economy by up to 40%, save 30% on maintenance costs and reduce
greenhouse emissions by 30%. We know our product will help the USPS fleet to
achieve its aggressive sustainability goals while also providing the
dependability that has been a hallmark of USPS for more than 200 years."
    For more information about Azure Dynamics and its products, 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: ON AZURE, CONTACT: Jay Sandler, Vice President
- Sales, (248) 298-2403 x1205, Email: jsandler@azuredynamics.com; Mike Elwood,
Vice President-Marketing, (905) 607-3486 x203, Email:
melwood@azuredynamics.com; Patrick Liebler, Liebler Group, (248) 229-4418,
Email: pat@lieblergroup.com

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AZURE DYNAMICS CORPORATION

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