Azure Dynamics and RøhneSelmer Target Up To 400 Transit Connect Electric Van Sales Annually in Norway

Oak Park, Michigan (ots/PRNewswire) -

- Azure Dynamics and RøhneSelmer, Ford Motor Company's market
leading
          dealer in Norway, sign a "Letter of Intent" to sell up to 
400 Transit Connect Electric
          vans annually
        - RøhneSelmer has placed 158 orders in its first nine months 
as a Transit
          Connect Electric dealership and sees continued strong 
demand in the Nordic Region
        - RøhneSelmer's major customers include Norway Post (Posten 
Norge AS) and other
          major commercial customers

Azure Dynamics Corporation ("Azure" or the "Company"), a world
leader in the development and production of hybrid electric and
electric components and powertrain systems for light and medium duty
commercial vehicles, and RøhneSelmer AS announced today that they
signed a Letter of Intent (the "LOI") to enter into an agreement
whereby RohneSelmer will import and distribute up to 400 Ford Transit
Connect Electric vans annually. The LOI is not a purchase order, but
rather sets in motion a collaborative effort to reach a definitive
distribution agreement within the coming weeks to further develop the
business in the Nordic Region. RøhneSelmer will focus its
importation, distribution, sales and service effort in Norway.

In March, 2011, RøhneSelmer supported Azure's inaugural European
Transit Connect Electric sale of 58 vans, including 20 vans to Post
Norway (Posten Norge AS) via its five locations in and around Norway
and in August, 2011, placed an order for 100 additional vans.

"The Transit Connect Electric European market continues to develop
quickly," said Scott Harrison, CEO of Azure Dynamics. "This
arrangement with RøhneSelmer will offer Azure and its Transit Connect
Electric a sophisticated distribution platform to further develop the
significant opportunities we see in the Nordic Region. This agreement
exemplifies how we are leveraging our valued partners like
RøhneSelmer and, as a result, we believe our mutual customers will be
well served in the most expedient manner possible."

RøhneSelmer reports that the Transit Connect Electric is proving
itself to be the right EV van for today's Norwegian market and that
consumer interest is strong and growing.

"Norway has a great appreciation for electric vehicles to help
achieve our aggressive environmental goals," said Christian August
Selmer, RøhneSelmer's owner. "Our experience shows that the Transit
Connect Electric has the right performance and cargo characteristics
to meet the needs of a large customer base in Norway."

Pursuant to the LOI, RøhneSelmer will submit purchase orders each
calendar quarter with a target of up to 400 vans annually. Azure and
RøhneSelmer point out that the LOI is neither an indication of future
sales, nor a guarantee of actual sales. The LOI confirms the
intentions of Azure and RøhneSelmer to enter into a definitive
agreement for the importation, distribution, sale and service of the
Transit Connect Electric in the Norwegian region.

The Transit Connect Electric offers Norwegian customers the
opportunity to eliminate petroleum fuel bills, take advantage of
car-pool lanes and to lower overall maintenance and operating costs.
The vehicle is an ideal choice for battery electric power thanks to
its unique combination of car-like driving dynamics, generous cargo
capacity, easy accessibility and low operating costs. Transit Connect
Electric can be recharged in approximately eight hours using standard
European 220-volt outlets.

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 from
Johnson Controls, Transit Connect Electric can achieve a range of
80KM/50 miles to 130KM/80 miles on a single charge and has a load
capacity of 530 kgs. With 28 kWh of power to call on, Transit Connect
Electric has a top speed of 120 km/h (75 mph). The product has been
brought to market at a time when increasing numbers of fleet
operators are demanding the benefits of efficient, clean alternative
powered vehicles.

The Transit Connect Electric went into production in Europe in
June, 2011 following its successful production launch in North
America in April, 2011. Since the Transit Connect Electric was
introduced in North America in December 2010, global Transit Connect
Electric sales have exceeded $29 million.

About Azure Dynamics

Azure Dynamics Corporation is a world leader in the development
and production of hybrid electric and electric components and
powertrain systems for light and medium duty 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 on how Azure Dynamics products are Driving a World of
Difference, please visit http://www.azuredynamics.com.

The TSX Exchange does not accept responsibility for the adequacy
or accuracy of this release.

Forward-Looking Statements Advisory

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 and
sales and deliveries of the Transit Connect Electric. 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, specifically
the Transit Connect Electric, 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
athttp://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:
        Ricardo Espinosa, Managing Director European Operations, 
+44(0)1438-729819
        Email: [email protected]  
[[email protected]%C2%A0 ]
        Juris Pagrabs, Vice President, Investor Relations, 
+1(248)298-2403 ext 7570
        Email: [email protected]

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