Azure Dynamics Announces Sale of 24 Balance(TM) Hybrid Electric Buses to King
County, Washington

    
        -  King County in Washington placed the 24 unit order through EK
           Coaches, Inc. in Mukilteo, WA

        -  Located on Puget Sound in Washington State, and covering 2,134
           square miles, King County's Metro Transit has annual ridership of
           more than 100 million passengers
    

OAK PARK, MI, June 15 /CNW/ - Azure Dynamics Corporation (TSX: AZD)(OTC:AZDDF) the fast growing hybrid electric and electric power train innovator for the commercial truck and bus market, today announced the sale of 24 Balance(TM) Hybrid Electric buses to King County, Washington for its Access Transportation services.

King County was able to award this contract with the support of Federal Transit Administration (FTA) stimulus funds aimed at providing fuel efficient and environmentally friendly transportation solutions. Under a competitive bid process the contract was awarded to EK Coaches, the dealership of record, for the Azure Balance(TM) Hybrid Electric drivetrain on a Ford E450 chassis. StarTrans Bus, a Supreme Corporation company, provided the 22-foot shuttle bus bodies with a capacity of up to 12 seated passengers plus two wheelchair positions. The vehicles are expected to be delivered later this year.

"As environmental awareness grows and vehicle operating costs continue to escalate, we're seeing strongly increased demand for our products from local governments and municipalities all across the country," said Jay Sandler, Vice President of Sales at Azure. "Our Balance(TM) Hybrid Electric product specifically addresses those issues so we expect demand to continue to grow."

The Balance(TM) Hybrid Electric product has a demonstrable economic payback independent of outside incentives. Since commercial vehicle fleets spend approximately 50% of their total operational costs in fuel, the Balance(TM) Hybrid Electric's ability to improve economy by up to 40% provides an enormous impact. Additionally, the Balance(TM) Hybrid Electric product reduces maintenance cost by up to 30% while typically improving vehicle "up-time" and therefore providing added opportunity to produce revenue for the end-user. King County's adoption of the environmentally friendly Balance(TM) Hybrid Electric will also reduce greenhouse emissions by up to 30% thereby protecting air quality for residents and visitors alike.

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

About Azure Dynamics

Azure Dynamics Corporation (TSX: AZD)(OTX: 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.

About EK Coaches, Inc.

EK Coaches, Inc. (EK Coaches) is the number one commercial bus dealership in the Northwest. With a talented parts and service department complimenting our first-class sales staff, EK Coaches is the leader in customer care. EK Coaches' expert sales representatives are here to help their customer's determine the best vehicle for their application whether that is a new bus, a used bus, or a rental bus. EK Coaches specializes in ADA compliant wheelchair accessible vans and buses. The Company also offers a wide range of vehicles from airport shuttles to luxury coaches and childcare vehicles.

About Supreme Corporation: StarTrans Bus

Supreme Industries, Inc. is a holding company for Supreme Corporation, established in 1974 with corporate offices located in Goshen, Indiana. Supreme is a nationwide manufacturer of specialized commercial truck bodies, service vehicles, armored vehicles, homeland response vehicles and paratransit/shuttle buses designed and manufactured to provide superior transportation solutions for a wide range of markets. With regional manufacturing plants in six states as well as three sales/service centers, a nationwide sales and distribution network, the broadest product line in the industry and strong relationships with all major truck chassis manufacturers, Supreme is better able to offer each customer a completed truck body or bus that meets their unique transportation or service requirements at a competitive price.

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: Jay Sandler, Vice President - Sales, [phone], Email: [email protected]; Patrick Liebler, Liebler Group, [phone], Email: [email protected]