Azure Dynamics Sells Four Balance(TM) Hybrid Electric Units with Option for
11 More

OAK PARK, MI, Dec. 2 /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, announced today that it will supply its Balance(TM) Hybrid Electric lift-equipped shuttle buses to Clermont Transportation Connection (CTC) in Batavia, Ohio. Clermont immediately placed an order for four buses and has the option to order a set number of additional units each year for the next three years with a total possible purchase of 15 buses. Initial deliveries will begin in the first half of 2010. Transportation Equipment Sales Corporation (TESCO) managed the transaction and 100 percent of the funds were provided by the American Recovery and Reinvestment Act of 2009 (ARRA) procurement.

"The distribution strategy we envisioned is truly becoming a reality," said Jay Sandler , Azure Dynamics Vice President of Sales. "We've built a foundation of partnerships with excellent dealers and premier bus body manufacturers who want to utilize our technology. Now, in turn, these partners are bringing opportunities to us.

"As more customers put our product into their fleets and experience improved uptime, lower operating costs and a reduction in emissions, our reputation grows. We're confident that we'll realize additional orders from the potential pool of 15 to Clermont," said Sandler.

CTC services Clermont County, Ohio, with both fixed route and dial-a-ride services. The Balance(TM) Hybrid Electric units will accommodate both seated and wheelchair passengers. The buses will also help protect Clermont's air quality by reducing greenhouse emissions by up to 30% when compared to a conventionally equipped bus. The Balance(TM) Hybrid Electric is integrated on a Ford E450 chassis.

"CTC is leading the way with alternative fueled mid-sized buses in Ohio," said Noel Graham , Jr., President of TESCO. "We have discussed this technology with many other transit agencies and I expect more to follow."

TESCO Bus, based in Oregon, OH, is committed to protecting and preserving the natural environment through a variety of ongoing programs. The buses will have purpose built bodies supplied by Goshen Coach which is based in Elkhart, IN.

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 labor 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: ON AZURE, CONTACT: Jay Sandler, Vice President - Sales, [phone] x1205, Email: [email protected]; Patrick Liebler, Liebler Group, [phone], Email: [email protected]