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Purolator Increases Purchase Order for Azure Hybrid-Electric Vehicles

August 17, 2007

VANCOUVER, BC –Azure Dynamics, a developer of hybrid-electric and electric powertrains for commercial fleet vehicles, announced that Purolator Courier Ltd., has altered and increased its existing purchase order for Azure hybrid delivery vans.

“Purolator is leading the way to less fuel consumption and substantial emissions reductions through the adoption of cleaner hybrid-electric technologies for its fleet vehicles. We look forward to continuing to work closely with Purolator to support its commitment to cleaner, more cost-effective fleet vehicles,” said Scott Harrison, CEO of Azure. “We now have two major delivery fleet operators as lead customers for our new parallel hybrid-electric delivery van on the Ford E-450 platform. Looking ahead, our goal is to secure two additional major delivery fleet operators as lead customers by year end to further strengthen our order book and increase our production volumes with our key supply partners.”

Purolator’s amended purchase order was placed shortly after the August 8 funding announcement by the Ontario government. Ontario is investing $15 million over four years in a pilot project to encourage businesses to convert to more environmentally-friendly technologies, such as hybrid power. The project will help make medium-duty hybrid trucks more affordable for commercial fleet operators.

“Since introducing Azure’s hybrid-electric vehicles (HEVs) to our fleet of curb-side delivery vehicles in 2005, we have logged more than 333,000 kilometers, saving almost 60,000 liters of fuel and preventing the emission of over 150 tons of greenhouse gas emissions,” said Robert Johnson, president and CEO of Purolator. “We look forward to advancing our deployment of HEVs using Azure’s new parallel hybrid-electric Ford E-450 as we progress in achieving our vision of leading the industry toward a future standard of zero emission vehicles.”

Under terms of the initial purchase order (dated September 15, 2005), Azure supplied 19 HEVs to Purolator. Under terms of an amendment to the initial purchase order (dated August 3, 2006), Azure was to supply an additional 115 HEVs to Purolator. To date, 30 of these additional HEVs have been delivered to Purolator and are currently in service.

Under terms of the amended purchase order (dated August 14, 2007), Azure will supply the remaining 85 HEVs to Purolator on its new parallel hybrid-electric Ford E-450 platform. Further, Purolator has increased the order to include an additional 20 HEVs for a total of 105 HEVs on the Ford E-450 platform. Azure expects to deliver all 105 Ford E-450 HEVs in the third and fourth quarters of 2008.

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