Azure Dynamics Corporation (”Azure” or the “Company”) - Notice of Cancellation of AIM Listing

OAK PARK, Michigan - Azure Dynamics Corporation (TSX: AZD & LSE: ADC) (”Azure” or the “Company”) a leading developer of hybrid electric and electric powertrains for commercial vehicles, today announced following its announcement of 16 January 2009, detailing the Company’s planned restructuring and cost reduction plan, Azure hereby announces that, following a review of the Company’s AIM listing by its Board, the Company has decided to cancel the admission of its common shares to trading on AIM with effect from 0700 on 8 May 2009 (the “Cancellation Date”). The last trading day for the Company’s shares on AIM will be 7 May 2009.

Given the Company’s North American focused shareholder base and operations, the relatively low number of the Company’s shareholders holding shares in the UK, the low volume of trading in shares on AIM and the additional costs incurred in maintaining a second listing on AIM, Azure’s Board has concluded that, in the current economic environment, it is in the best interests of the Company to seek a cancellation of its shares from trading on AIM.

The Company will maintain its listing on the Toronto Stock Exchange (”TSX”) and shareholders wishing to trade the Company’s Common Shares after the Cancellation Date will be able to do so through that market. Shareholders should not therefore be materially prejudiced by the proposed cancellation of the AIM listing.

UK shareholders who hold their shares in certificated form will be migrated to the Company’s Canadian Register automatically and will receive communication shortly to this effect.

UK shareholders who hold their shares in uncertificated form via a CDI holding will continue to be able to trade their shares on the Canadian market.

Shareholders who are in any doubt as to what action, if any, to take in respect of their shareholdings are advised to consult their stockbroker, bank manager, solicitor, accountant or other independent professional adviser. For those not familiar with the Canadian securities system, public information on the Company can be accessed through www.sedar.com, an independent website on which all regulatory filings must be made.

Azure Dynamics

Azure Dynamics Corporation (TSX: AZD) (LSE: ADC) 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. Azure Dynamics’ operations are based in North America and Europe.

For more information please visit www.azuredynamics.com.

<< The TSX and LSE Exchanges do 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: Ryan Carr, Chief Financial Officer, +1-248-298-2403 ext 1206, Email: rcarr@azuredynamics.com; Stuart Skinner, Richard Kenny, Tel: +44-207-260-1000, Numis Securities Limited as Nominated Adviser to the Company; David Poutney, Tel: +44-207-260-1000, Numis Securities Limited as Broker to the Company.

Source: Azure Dynamics Corporation

For further information: Ryan Carr, Chief Financial Officer, +1-248-298-2403 ext 1206, Email: rcarr at azuredynamics.com; Stuart Skinner, Richard Kenny, Tel: +44-207-260-1000, Numis Securities Limited as Nominated Adviser to the Company; David Poutney, Tel: +44-207-260-1000, Numis Securities Limited as Broker to the Company