Azure Dynamics Europe Signs Germany’s Auto-Strunk to Sales and Service Agreement

OAK PARK, Michigan, September 26, 2011 -

Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF), a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles, announced today that Auto-Strunk GmbH has become the latest European dealership to sign a sales and service agreement for the innovative Ford Transit Connect Electric van.  Transit Connect Electric will be available via Auto-Strunk locations in both Cologne and Langenfeld (Rhineland), Germany.

European manufacturing for Transit Connect Electric began in June, 2011 and in North America in April, 2011.  Azure has since received orders for the Transit Connect Electric van of more than 400 units worldwide and was recently honored with the ÖkoGlobe Award for sustainable innovations in mobility.

“Germany is an important market for us and we’re thrilled to have Auto-Strunk, a well known and well connected dealership partner, to present Transit Connect Electric to its commercial fleet customers,” said Ricardo Espinosa, Azure’s managing director in Europe.

“Auto-Strunk is working aggressively to provide customers with vehicles that help lower operational costs and improve environmental performance,” said Edith Strunk, CEO at Auto-Strunk.  “As the recent ÖkoGlobe Award demonstrates, the Transit Connect Electric van can accomplish those goals as well as any vehicle currently available in Germany.”

To bring forward innovation in electric vehicles, German Chancellor Angela Merkel is committed to having one million electric cars on German roads by 2020.

With a unique combination of car-like driving dynamics, rugged load capacity, dependability and low operating costs, the Transit Connect Electric van is an ideal choice for German commercial fleet operators looking to reduce operational costs and lessen their impact on the environment.

On September 6^th 2011, the Transit Connect Electric was honored with the coveted ÖkoGlobe Award from the ÖkoGlobe Institute of the University of Duisburg Essen.  ÖkoGlobe is an international environmental award that honors sustainable innovations in the field of mobility.

Azure’s distribution strategy in Europe is to establish partnerships with carefully selected Ford Commercial Truck dealerships to offer Transit Connect Electric sales and service activities in strategically targeted markets.

To create the Transit Connect Electric, Azure integrates its proven Force Drive^[TM]electric powertrain into the award-winning Ford Transit Connect. Utilizing an advanced lithium-ion battery, Transit Connect Electric can achieve a range of up to 80-130KM/50-80 miles on a single charge and has a load capacity of 500kgs.

For more information on how Azure Dynamics is Diving a World of Difference, please visit www.azuredynamics.com.

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.

About Auto-Strunk:

Auto-Strunk GmbH is a well established car dealer operating in Cologne, Germany for 100 years in 2011. The family run business holds subsidies in Langenfeld (Rheinland) and Brandenburg an der Havel with almost 400 employees. The partnership with Ford Motor Company was established 75 years ago and is since then core brand for the business. Focusing on the customer and its needs all around the field of mobility with high quality service was always key to Auto-Strunk. Incorporating electric vehicle was logic in following this guiding theme and made possible by a cooperation with Azure Dynamics.
For more information in German please visit: www.auto-strunk.de.

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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, Azure Dynamics Europe, +44(0)1277-725-652
                                 Email gwhittam@azuredynamics.com

    Patrick Liebler, Liebler Group, 248-229-4418
                                 Email: pat@lieblergroup.com

(AZD. AZDDF)

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