Purolator Increases Purchase Order for Azure Hybrid-Electric Vehicles

Azure Dynamics Corporation, a leading developer of hybrid-electric and electric powertrains for commercial fleet vehicles, today announced that Purolator Courier Ltd., Canada's largest courier company, has altered and increased its existing purchase order for Azure hybrid delivery vans.

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 an increase our production volumes with our key supply partners."

Purolator's amended purchase order was placed shortly after the August 8 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 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.

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