Azure Dynamics Announces Filing of A Preliminary Short Form Prospectus for an Offering of Common Shares

OAK PARK, Michigan, November 18 - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES

Azure Dynamics Corporation (TSX: AZD) - ("Azure" or the "Company"), an
industry leader in the development of hybrid electric and electric
technologies for commercial vehicles, announced today the filing of a
preliminary short form prospectus with the securities regulatory
authorities in each of the provinces of Canada in connection with a
proposed offering of common shares (the "Offering").

The number of common shares to be offered and the price per common
share offered pursuant to the Offering have not yet been determined. The
common shares are being offered on a best efforts basis, with no minimum
number or dollar amount requirement.

The Offering will be conducted through a syndicate of agents led by
Raymond James Ltd., and including Cormark Securities Inc., Stonegate
Securities, Inc. and Paradigm Capital Inc.

The Offering is scheduled to close in December 2009 and is subject to
certain conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the Toronto Stock Exchange.

The Company plans to use the net proceeds of the Offering to fund its
engineering, research, development and related costs, selling and marketing
expenditures, general and administration expenditures, as well as general
working capital requirements.

This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities of Azure in the
United States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended or any state
securities laws and may not be offered or sold within the United States or
to U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or unless an exemption from such
registration is available.

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 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 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: Ryan Carr, Chief Financial Officer, +1-(248)-
298-2403 ext 1206, Email: rcarr@azuredynamics.com; Pat Liebler, Liebler
Group, +1-(313)-832-4376, Email: pat@lieblergroup.com

For further information: Ryan Carr, Chief Financial Officer, +1-(248)-298-2403 ext 1206, Email: rcarr at azuredynamics.com; Pat Liebler, Liebler Group, +1-(313)-832-4376, Email: pat at lieblergroup.com