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Azure Dynamics Signs Memorandum of Understanding With Utilimaster for Hybrid Vehicle Integration

August 7, 2007

TORONTO – Azure Dynamics Corporation, a developer of hybrid electric and electric powertrains for commercial fleet vehicles, has signed a Memorandum of Understanding (MOU) with Utilimaster Corporation, a builder of step vans, commercial truck bodies, and utility vehicles, for the assembly, hybridization. and manufacturing engineering of Azure’s P1 hybrid electric commercial delivery vans and shuttle buses.

Under proposed terms of the MOU, Azure will provide Utilimaster with its P1 hybrid electric powertrains, which Utilimaster will integrate into Ford Motor Company’s E-Series commercial chassis at Utilimaster’s manufacturing facilities in Wakarusa, Ind.

“This business arrangement with Utilimaster represents a vital link in our supply chain for the production of our P1 hybrid electric commercial delivery vans. We expect this agreement will result in significant cost efficiencies as we increase production volumes of the Ford E-Series hybrid delivery vans,” said Scott Harrison, chief executive officer of Azure Dynamics.

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