AZURE DYNAMICS SETS DATE FOR SPECIAL MEETING OF SHAREHOLDERS

OAK PARK, MI, June 21, 2011 /CNW/ - Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF) ("Azure" or the "Company"), a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles, announced today that it has published a date for a special shareholder meeting to be held on August 19, 2011, at Azure's corporate headquarters, 14925 W. 11 Mile Road in Oak Park, Michigan (the "Meeting"), at which Azure intends to seek shareholder authorization for the Board to effect a consolidation of Azure shares in order for Azure to pursue a dual listing on a U.S. stock exchange, such as the NASDAQ Global Market.

"With operations in Canada, Europe and the United States, Azure is becoming a more global company with international investors, partners and customers," said Scott Harrison, CEO of Azure.  "This proposed share consolidation will allow the Company to pursue a NASDAQ stock exchange listing, which, if successful, may improve visibility and liquidity by broadening the Company's investor base and increasing its exposure to larger financial markets.  The NASDAQ stock market is widely considered to be a leading stock exchange for companies advancing new technologies to the market."

Azure regularly reviews the potential benefits of seeking a listing on additional stock exchanges and, having explored the options in this regard, has determined to commence the listing application process on the NASDAQ Global Market.  Azure intends to retain its listing on the Toronto Stock Exchange ("TSX").  A dual listing of this type has enabled some TSX-listed companies to expand their investor base, increase the liquidity of their equity securities and reduce their cost of capital.

The Company expects to realize a number of benefits from a listing on a U.S. stock exchange, such as the NASDAQ Global Market, including:

  • Access to a larger domestic as well as global financial market;
  • Expanded exposure to additional investors;
  • Greater coverage by industry and financial analysts; and
  • The ability to disclose the Company's financial performance, business achievements, and other important information to a larger audience.

Azure's listing application process with the NASDAQ Global Market will be subject to satisfaction of a number of listing criteria as well as approval by NASDAQ and applicable securities regulatory approvals.  Azure's current per share price does not meet the NASDAQ listing standards and a consolidation of the Company's shares would be required in order to meet such listing requirements and complete a NASDAQ listing.  The Board of Directors of Azure has therefore determined that it is in Azure's best interests for the Board to have the authority to implement a consolidation of Azure's issued and outstanding common shares.

At the Meeting, Azure shareholders will be asked to approve a share consolidation within a proposed range.  If approved by the shareholders, as well as the applicable stock exchange and securities regulatory approvals, the share consolidation will not take place unless further authorized by the Board of Directors on a date and at a specific consolidation ratio determined by the Board within the range approved by the shareholders.

Further details, including the proposed consolidation ratio range, will be set out in a management information circular to be delivered to shareholders and filed on SEDAR in advance of the Meeting in due course.

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 on how Azure Dynamics products are Driving a World of Difference, please visit www.azuredynamics.com.

The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements Advisory

Certain information included in this press release constitutes forward-looking statements and information and future-oriented financial information under applicable securities legislation and is provided for the purpose of expressing management's current expectations and plans for the future.  Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.

More particularly, this press release contains statements concerning Azure's anticipated: special shareholder meeting date, share consolidation matter of business at the special shareholder meeting, benefits of the share consolidation, process and application for a listing on the NASDAQ Global Market and the benefits thereof . The forward-looking statements are based on a number of key expectations and assumptions made by Azure, including expectations and assumptions concerning the achievement of current timetables, the effects of a share consolidation on the per share price of Azure shares, and the receipt of all applicable shareholder, stock exchange and regulatory approvals. Although Azure believes that the expectations and assumptions used to develop the forward-looking statements 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 numerous risks and uncertainties that contribute to the possibility that the projections and forecasts in the forward-looking statements will not occur and that actual performance or results could differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, but are not limited to, failure to receive all necessary shareholder, stock exchange and securities regulatory approvals for the proposed share consolidation or the necessary stock exchange and securities regulatory approvals for the proposed NASDAQ listing, uncertainty of predicting or quantifying the effects of the share consolidation on the per share price of Azure shares, risks associated with Azure's stage of development, history of losses and lack of historical product revenues, uncertainty as to product development and milestones being met, product defect and performance risks, competition for capital and market share, dependence on third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability and retention of management and key personnel, exchange rate and currency fluctuations, uncertainties relating to potential delays or changes in plans with respect to product development or capital expenditures, the availability of access to capital on acceptable terms, and environmental and safety risks.  This is not an exhaustive list and additional information on these risks and other factors that could affect Azure's operations and financial results are included in reports on file with the Canadian securities regulatory authorities and can be accessed through the SEDAR website 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. Additionally, Azure undertakes no obligation to comment on the expectations of, or statements made by, third parties about Azure.

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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