Purolator increases purchase order for Azure hybrid-electric vehicles

    TORONTO, Aug. 14 /CNW/ - Azure Dynamics Corporation (TSX: AZD & LSE: ADC)
("Azure" or the "Company"), a leading developer of hybrid-electric and
electric powertrains for commercial fleet vehicles, today announced that
Purolator Courier Ltd. ("Purolator"), Canada's largest courier company, has
altered and increased its existing purchase order for Azure hybrid delivery
    "Purolator is leading the way to less fuel consumption and substantial
emissions reductions through the adoption of cleaner hybrid-electric
technologies for its fleet vehicles. We look forward to continuing to work
closely with Purolator to support its commitment to cleaner, more
cost-effective fleet vehicles," said Scott Harrison, CEO of Azure. "We now
have two major delivery fleet operators as lead customers for our new parallel
hybrid-electric delivery van on the Ford E-450 platform. Looking ahead, our
goal is to secure two additional major delivery fleet operators as lead
customers by year end to further strengthen our order book and increase our
production volumes with our key supply partners."
    Purolator's amended purchase order was placed shortly after the August 8,
2007 funding announcement by the Ontario Government. Ontario is investing
$15 million over four years in a pilot project to encourage businesses to
convert to more environmentally-friendly technologies, such as hybrid power.
The project will help make medium-duty hybrid trucks more affordable for
commercial fleet operators.
    "Since introducing Azure's hybrid-electric vehicles ("HEV") to our fleet
of curb-side delivery vehicles in 2005, we have logged more than 333,000
kilometres, saving almost 60,000 litres of fuel and preventing the emission of
over 150 tonnes of greenhouse gas emissions," said Robert Johnson, President
and CEO of Purolator. "We look forward to advancing our deployment of HEVs
using Azure's new parallel hybrid-electric Ford E-450 as we progress in
achieving our vision of leading the industry toward a future standard of zero
emission vehicles."
    Under terms of the initial purchase order (dated September 15, 2005),
Azure supplied 19 HEVs to Purolator. Under terms of an amendment to the
initial purchase order (dated August 3, 2006), Azure was to supply an
additional 115 HEVs to Purolator. To date, 30 of these additional HEVs have
been delivered to Purolator and are currently in service. Under terms of the
amended purchase order (dated August 14, 2007), Azure will supply the
remaining 85 HEVs to Purolator on its new parallel hybrid-electric Ford E-450
platform. Further, Purolator has increased the order to include an additional
20 HEVs for a total of 105 HEVs on the Ford E-450 platform. Azure expects to
deliver all 105 Ford E-450 HEVs in the third and fourth quarters of 2008.

    About Purolator

    As Canada's largest courier company, Purolator Courier Ltd. of
Mississauga, Ontario is committed to its customers. From automated solutions
to 24 hour pick up and delivery, Purolator provides customers with the
services and customized solutions required to get their shipments across town
or around the world.
    Purolator has an extensive service network, with over 12,500 employees,
including more than 3,500 couriers, 123 operations locations, over 150
Shipping Centres, over 570 Authorized Shipping Agents and more than 400 drop
boxes. Purolator processes over 5.5 million pieces (delivery and pick up) each
week for destinations across Canada and around the world. Purolator is
committed to helping alleviate hunger in Canada, and works closely with the
Canadian Association of Food Banks to support local communities. For more
information please visit the company website at www.purolator.com.

    About Azure

    Azure Dynamics Corporation (TSX: AZD) (LSE: ADC) 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: Steven Glaser, Vice-President, Corporate
Affairs, (416) 367-0220, Email: sglaser@azuredynamics.com

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