Azure Dynamics Corp. (AZDDQ)

[B7$4]

"AZDDF News" Azure Dynamics Receives 34 Unit Bus Order via the Illinois Department of Transportation

http://www.prnewswire.com/news-releases/azure-dynamics-receives-34-unit-bus-order-via-the-illinois-department-of-transportation-95400764.html

- Illinois Department of Transportation (IDOT) sponsored the 34 unit
order on behalf of nine transit agencies in the state
- IDOT utilized a Transit Investments for Greenhouse Gas and Energy
Reduction (TIGGER) Grant to reduce acquisition costs
- Azure Dynamics technology is available to transit agencies throughout
the United States via established contracts
- Azure Dynamics has announced 177 Balance(TM) Hybrid Electric vehicle
sales to a total of 25 end users since the start of the second
quarter on April 1st, 2010

OAK PARK, MI, June 2 /PRNewswire-FirstCall/ - Azure Dynamics Corporation (TSX: AZD)(OTC:AZDDF) the fast growing hybrid electric and electric power train innovator for the commercial truck and bus market, today announced a 34 unit Balance(TM) Hybrid Electric bus sale via the Illinois Department of Transportation (IDOT). IDOT will leverage available funding from a Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER) Grant to help offset acquisition costs.

"Our products have an economic advantage for the user and an environmental advantage for society at large. Add the federal stimulus funds and you have a confluence of factors that make our Balance(TM) Hybrid Electric a very attractive opportunity for public fleets," said Jay Sandler, Azure's Vice President of Sales.

Azure Dynamics has announced 177 Balance(TM) Hybrid Electric vehicle sales to a total of 24 end users since the start of the second quarter on April 1st, 2010.

The IDOT contract is the result of a TIGGER Grant that the State of Illinois was awarded earlier this year. Those grants, in part, provide incentives to public transportation systems looking to acquire efficient, green technology to assist in the reduction of energy consumption and/or greenhouse gas emissions.

Midwest Transit Equipment of Kankakee, IL will be the dealership for the contract. Midwest Transit Equipment also recently partnered with Azure on a contract with the Michigan Department of Transportation (MDOT) for up to 50 buses. StarTrans Bus, a Supreme Corporation Company, of Goshen, IN, will supply shuttle bodies for the IDOT buses.

"Although IDOT is listed as the buyer for these buses, Azure actually benefits from placing our technology with nine different transit agencies throughout the State of Illinois," said Sandler. "We relish the opportunity to bring new customers into the fold and have them experience our product's economic and operational benefits firsthand."

The Azure Balance(TM) Hybrid Electric system has unique attributes like engine-off at idle and at below 20 miles per hour, while electronically supporting key ancillary functions like air conditioning, power steering and braking. The drive train, with a Ford 5.4L engine, can improve fuel economy substantially, while reducing carbon emissions by up to 30% in city conditions. The hybrid drive train also offers a significant reduction in maintenance costs versus conventionally equipped competitors.