Azure Dynamics Announces New European Dealerships

OAK PARK, Michigan, October 18, 2011 -

    - Azure announces Ford dealer representation for Transit Connect Electric
sales and service agreements in Belgium, Netherlands and Sweden.
 
    - Along with previously announced dealer appointments in U.K., Germany and
Norway, Azure now has sales locations in six European countries.
 
    - By partnering with market-leading dealerships that often have multiple
store locations, Azure now has 13 European dealer relationships with 57 distinct store locations.
 
    - With European governments encouraging broader EV adoption, Azure has dealerships in five capital cities.

Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF) (”Azure” or the “Company”), a world leader in the development and production of hybrid electric and electric components and powertrain systems for light and medium duty commercial vehicles, today announced three new dealership sales and service agreements for the innovative Ford Transit Connect Electric. These new agreements bring additional sales and service locations in Netherlands, Belgium and Sweden and increase the total dealership locations in Europe to 57.

“We continue to receive strong demand for Transit Connect Electric from various businesses throughout Europe,” said Ricardo Espinosa, Azure’s managing director in Europe. “Each European country has its own set of rules and regulations regarding sales and service activity for new commercial vehicles. As we establish new dealerships, Azure Dynamics and its Transit Connect Electric essentially become ‘open for business’ for customers in each new country.”

“Further, Azure targets dealer partners who are established Ford commercial vehicle leaders in strategically significant markets, each of whom has experience of supplying to commercial and government buyers - many of whom have already expressed an interest in acquiring the innovative Transit Connect Electric. Therefore, Azure gains access to new markets quickly and efficiently.”

Azure’s previously announced relationship with Oslo, Norway’s RhoneSelmer Ford dealership resulted in more than 150 vehicle orders during its first five months of operation.

The new dealerships are:

• MVC Automotive Amsterdam B.V. located in Amsterdam, Netherlands
• Aredea Auto B.V. with three dealerships in Rotterdam, Hoofddorp and Amersfoort, Netherlands
• Upplands Motor Stockholm AB located in Stockholm Sweden
• Cegeac SA/NV located in Brussels, Belgium. Cegeac also adds sales and service for customers in Luxembourg

With governments encouraging the adoption of electrified transportation to lower both refueling costs and greenhouse emissions, Azure Dynamics now has dealerships in the capital cities of Amsterdam, Brussels, London, Oslo and Stockholm.

“The electric vehicle is at ease in city centers where the majority of commercial delivery operations reside,” said Thierry Vanderschrick, MD at Cegeac. “With its size and load capacity and strong reputation, along with the benefits of its electrified powertrain, we believe Transit Connect Electric is the best available solution for our customers in Belgium and Luxembourg wanting EV commercial vehicles.”

The conventional Transit Connect was first introduced in Europe in 2002 and has conclusively proven itself to be a versatile vehicle for real world commercial customers seeking its unique combination of car-like driving dynamics, significant cargo capacity, accessibility and dependability. The all-electric Transit Connect Electric began production in Europe earlier this year and addresses Europe’s high energy costs while offering substantial environmental benefits for society at large. Since the Transit Connect Electric was introduced in North America in December 2010, Azure has received more than 460 orders for Transit Connect Electric worldwide.

About Azure Dynamics
Azure Dynamics Corporation (TSX: AZD)(OTC: 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 a variety of 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 Advisory

Certain information included in this press release constitutes forward-looking statements and information and future-oriented financial information under applicable securities legislation and is provided for the purpose of expressing management’s current expectations and plans for the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.

More particularly, this press release contains statements concerning Azure’s anticipated: business development strategy, customer orders, product deliveries, sales, revenue and revenue growth. The forward-looking statements are based on a number of key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs and sales, 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 used to develop the forward-looking statements 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 numerous risks and uncertainties that contribute to the possibility that the projections and forecasts in the forward-looking statements will not occur and that actual performance or results could differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks associated with Azure’s stage of development, history of losses and lack of historical product revenues, uncertainty as to product development and sales milestones being met, product defect and performance risks, competition for capital and market share, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability and retention of management and key personnel, exchange rate and currency fluctuations, uncertainties relating to potential delays or changes in plans with respect to product development or capital expenditures, the ability of Azure to access sufficient capital on acceptable terms, and environmental and safety risks. This is not an exhaustive list and additional information on these risks and other factors that could affect Azure’s operations and financial results are included in reports on file with the Canadian securities regulatory authorities and can be accessed through the SEDAR website 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. Additionally, Azure undertakes no obligation to comment on the expectations of, or statements made by, third parties about Azure.

For further information:

    
    Gary Whittam, 
    sales and marketing director
    +44(0)7562-767001
    Email: gwhittam@azuredynamics.com
 
    Patrick Liebler, 
    Liebler Group, 
    +1-248-229-4418
    Email: pat@lieblergroup.com

(AZD. AZDDF)

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