Azure Dynamics Selects Lotus Lightweight Structures for Transit Connect Electric Upfitting in Europe

Lotus Lightweight Structures to Provide Expertise to Upfit the Base Ford Transit Connect With Azure's patented ForceDrive(TM) Electric Powertrain to Create Transit Connect Electric

OAK PARK, Michigan, March 23, 2011 - 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 commercial
vehicles, announced today that Lotus Lightweight Structures, a division of
Group Lotus plc, will provide assembly support for the Transit Connect
Electric for the European market. Lotus Lightweight Structures will be
responsible for upfitting Azure's patented ForceDrive(TM) battery electric
powertrain into Ford Transit Connect "gliders" (powerless vehicles without a
conventional powertrain or exhaust) from its facility in Worcester, UK,
beginning in June 2011.

"The European Union and individual governments and private businesses are
all working to lead the adoption of electric transportation technology and
have shown strong interest in the Transit Connect Electric van," said Scott
Harrison, CEO of Azure Dynamics. "With Lotus Lightweight Structures, the
project gets another globally renowned automotive company to ensure that
final assembly is completed to the exacting standards of our customers."

Stephan Pathenschneider, Chief Operating Officer - Lotus Cars said, "As
part of Group Lotus plc, Lotus Lightweight Structures, based in Worcester in
England, has a well earned reputation as one of the finest high technology
automotive organizations in the world. We have a client base that includes
both premier sports car brands and large car companies and of course we
manufacture and assemble the pioneering and award winning bonded and extruded
aluminium chassis for the Tesla Roadster, the Lotus Evora, the Lotus Elise
and Lotus Exige. We not only specialize in manufacturing vehicle structures
from lightweight materials including aluminium, composites and lightweight
steels, but we also have a high quality and efficient assembly process which
will enable us to upfit the Azure Dynamics ForceDrive(TM) electric Powertrain
to the Ford Transit Connect Electric."

Transit Connect Electric is the all-electric version of Ford Motor
Company's award-winning Transit Connect, first introduced in Europe in 2002
when it was awarded the prestigious 'International Van of the Year Award'.
Transit Connect has a successful history in Europe due to its combination of
car-like driving dynamics, cargo capacity, accessibility and low operating
costs. Transit Connect Electric is an ideal choice for light duty commercial
customers who travel predictable, short-range routes with frequent
stop-and-go conditions in urban and suburban environments. In addition to its
favorable carbon footprint, the Transit Connect Electric is extremely quiet
thus lessening noise pollution on crowded streets.

Many European fleet owners have participated in early Transit Connect
Electric demonstration programs and expressed enthusiasm for the vehicle's
performance and eco characteristics. On a full charge, Transit Connect
Electric has a range between 80 KM/50 miles and 130 KM/80 miles depending on
auxiliary power usage and drive cycle. It is rechargeable using standard
European 220/240-volt outlets within 6 to 8 hours. Commercial fleet vehicles
generally return to a central location at the end of a driving cycle making
them perfect for recharging overnight.

The Lotus Lightweight Structures facility in Worcester, England will
receive Transit Connect "gliders" shipped from the Ford manufacturing
location in Turkey, and ForceDrive(TM) electric components from Azure and its
supplier facilities. Lotus Lightweight Structures will provide all final
assembly operations for vehicles bound to the European market.

Azure's ForceDrive(TM) powertrain has previously been deployed in more than
40 vehicle integrations and has more than 35 million miles of on-the-road
experience. Energy stored in the lithium ion battery is utilized to drive the
motor through the electric powertrain's motor controller. The accelerator
input from the driver converts DC power supplied by the battery into three
precisely timed signals used to drive the motor. The Transit Connect Electric
van's appearance is identical to the standard Transit Connect other than the
inclusion of the Azure ForceDrive(TM) badge on the rear of the vehicle and
information provided on the instrument cluster. Of course, Transit Connect
Electric will not have an exhaust pipe as the vehicle produces zero tailpipe
emission.

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 Lotus
Group Lotus plc, is based in Norfolk, UK, and has three operating divisions:
Lotus Cars, Lotus Engineering and Lotus Motorsport.

Lotus Cars builds world class, high performance sports cars including the
award-winning Evora, the iconic Elise and the stunning Exige and the road /
track orientated 2-Eleven. Lotus New Era, the future product line-up, was
unveiled in Paris on 30th September 2010 featuring the new Esprit, Elan,
Elite, Elise and Eterne.

Lotus Cars also includes Lotus Lightweight Structures which is based in
Worcester, England and manufactures the bonded and extruded Aluminium chassis
structures for all Lotus cars and also manufactures components for other
premier sports car brands and large car companies.

Lotus Engineering provides comprehensive and versatile consultancy
services to many of the world's OEMs and Tier 1 suppliers and is an
internationally recognised automotive engineering consultancy. Global
facilities include those in the US, Malaysia, China and offices in Germany
and Japan, with rapid expansion in new territories such as South East Asia.
Lotus is a global high-tech company, expanding rapidly and committed to
driving forward technology for both Lotus Cars and its Engineering clients,
spearheading research into such areas as hybrids, electric vehicles and
renewable fuels.

Lotus Motorsport operates the motorsports activities of Lotus and
includes the strategy to return the Lotus name to a great number of series
including endurance racing with GT2, GT4 and LMP2, single seater racing with
GP2, GP3 and IndyCar. Lotus has also returned to F1 with Lotus Renault GP
from the start of the 2011 F1 racing season onwards.

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For further information:

Azure Dynamics

Mike Elwood, Marketing VP, Azure Dynamics, Mississauga, Ontario, Canada
+1-905-607-3486 ext 6203 Email: melwood@azuredynamics.com

Juris Pagrabs, Vice President, Investor Relations, +1(248)298-2403 ext
7570 Email: jpagrabs@azuredynamics.com

Patrick Liebler, Liebler Group, +1-248-229-4418
Email: pat@lieblergroup.com

Lotus

PR Department, Group Lotus plc, Potash Lane, Hethel, Norfolk, UK, NR14
8EZ Email: pr@lotuscars.com, Tel: +44(0)1953-608264

For further information: Azure Dynamics, Mike Elwood, Marketing VP, Azure Dynamics, Mississauga, Ontario, Canada, +1-905-607-3486 ext 6203 Email: melwood at azuredynamics.com ; Juris Pagrabs, Vice President, Investor Relations, +1(248)298-2403 ext 7570 Email: jpagrabs at azuredynamics.com ; Patrick Liebler, Liebler Group, +1-248-229-4418, Email: pat at lieblergroup.com ; Lotus, PR Department, Group Lotus plc, Potash Lane, Hethel, Norfolk, UK, NR14 , 8EZ Email: pr at lotuscars.com, Tel: +44(0)1953-608264