For the nine months ended September 30, 2009, the company has reported a net loss of C$19.8 million or C$0.05 per share, compared to a net loss of C$24.3 million or C$0.08 per share in the same period of 2008.

Total revenue for the first nine months of 2009 totaled C$5 million, compared to C$5.1 million in the first nine months of 2008.

Scott Harrison, CEO of the company, said: "While the automotive and commercial vehicle industries struggled along with the rest of the economy to recover during the quarter, we saw definite signs of improvement and opportunity. Interest from our current and prospective customers picked up significantly and several new orders that had been on hold were released late in the quarter and into the fourth quarter."

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Most of the new gasoline-electric vehicles are expected to be put into service at a Bronx, New York station, making it all-hybrid facility with about 100 trucks.

John Formisano, vice president of global vehicles at FedEx Express, said: "Even during a challenging fiscal year, FedEx has continued to make investments in hybrid electric and electric vehicles a priority because of the long-term value in vehicle technologies that reduce fuel costs and pollution.

"FedEx now operates seven different hybrid or electric truck models around the globe, demonstrating that commercial delivery vans can reduce pollution and increase efficiency without any sacrifice in performance and durability."

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"Even during a challenging fiscal year, FedEx has continued to make investments in hybrid electric and electric vehicles a priority because of the long-term value in vehicle technologies that reduce fuel costs and pollution," said John Formisano, Vice President of Global Vehicles, FedEx Express. "FedEx now operates seven different hybrid or electric truck models around the globe, demonstrating that commercial delivery vans can reduce pollution and increase efficiency without any sacrifice in performance and durability."

The New York State Energy Research and Development Authority (NYSERDA) is providing a grant to FedEx for the Azure hybrids. NYSERDA, in part, aims to maintain momentum for the State's efforts to develop competitive markets for energy efficiency.

With its electric-launch assist, engine-off at idle and regenerative braking, the Azure Balance(TM) Hybrid Electric walk-in vans specified by FedEx are ideally suited for the tough start and stop conditions endured in the everyday traffic of one of the world's busiest cities. The FedEx Express New York all-hybrid facility demonstrates that cleaner hybrid electric technologies are a viable alternative to conventionally equipped trucks.

The Azure order was placed through Automotive Resources International (ARI), a major fleet management company based in Mount Laurel, New Jersey. ARI has evolved into the largest privately-held fleet leasing and management company in the world.

For more information about Azure Dynamics and its products, please visit www.azuredynamics.com.

About Azure Dynamics

Azure Dynamics Corporation (TSX: AZD) 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 various 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 FedEx

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $34 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 275,000 team members to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit www.fedex.com.

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

Forward-looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning Azure's business development strategy, projected commercial revenues and product deliveries.

The forward-looking statements are based on certain key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs, target market acceptance of Azure's products, current and new product performance, availability and cost of labour and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions on which the forward-looking statements are based 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 inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with Azure's early stage of development, lack of product revenues and history of losses, requirements for additional financing, uncertainty as to commercial viability, uncertainty as to product development and commercialization milestones being met, uncertainty as to the market for Azure's products and unproven acceptance of Azure's technology, competition for capital, product market and personnel, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability of management and key personnel, and acquisition integration risk. These risks are set out in more detail in Azure's annual information form which can be accessed at 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.

SOURCE Azure Dynamics Corporation

The collaboration with Azure Dynamics for the Transit Connect BEV will build on the existing business relationship between Ford and Azure as well as their shared experience with battery supplier, Johnson Controls-Saft.

"We recognize an increasing interest in electrified vehicles and have an aggressive strategy to bring these vehicles to the marketplace," said Nancy Gioia, Ford director of Global Electrification. "Our work with Azure to create a pure electric battery Transit Connect vehicle will allow us to offer our commercial customers an additional option for environmentally friendly transportation."

The Transit Connect BEV will be built on Ford's global commercial vehicle platform as part of the company's One Ford global product vision. It is the first of four electrified vehicles from Ford that will become available over the next three years in the U.S. and Canada including:

    <<
    -  Battery electric Transit Connect van in 2010
    -  Battery electric Ford Focus passenger car in 2011
    -  Next generation hybrid vehicle in 2012
    -  Plug-In hybrid vehicle in 2012
    >>

Collaboration builds on existing business relationship

Azure Dynamics develops hybrid electric and electric drive technology for shuttle buses and commercial trucks, such as the Balance(TM) Hybrid Electric, which is built on the Ford E-450 cutaway and strip chassis for the medium duty commercial vehicle segment.

"The opportunity to work with Ford on the Transit Connect BEV is a breakthrough advancement for us at Azure and for the light commercial vehicle market," said Scott Harrison, Azure Dynamics CEO. "For Azure, it's an important evolution of our existing relationship with Ford. From an industry standpoint, we are seeing delivery fleet and utility vehicle operators move to smaller, more fuel efficient vehicles. The Transit Connect BEV will come to market at an ideal time to meet this growing trend."

Oak Park, Mich.-based Azure Dynamics will integrate its proprietary Force Drive(TM) battery electric drive train into the Transit Connect BEV, which will have a targeted range of 80 miles minimum on a full charge and zero tailpipe emissions. Force Drive(TM) components have previously been deployed in more than 40 vehicle integrations and have more than 25 million miles of on-the-road experience. The Transit Connect BEV will offer fleet owners the opportunity to eliminate the use of gasoline and help to lower operating costs. The vehicle will be badged with both the Ford Blue Oval and Azure's Force Drive logo.

Azure Dynamics has selected Johnson Controls-Saft as the supplier for lithium-ion battery cells and battery packs for the Transit Connect BEV. Azure Dynamics and Ford both currently utilize Johnson Controls-Saft battery technology for other products. The Transit Connect BEV will use the same proven cell technology that is currently deployed in the Ford Escape plug-in hybrid fleet that is on the road today. In addition, Azure had previously announced it would use Johnson Controls-Saft lithium-ion batteries for its E- 450 Balance Hybrid Electric beginning in the second half of 2010. The shared supplier business relationship is expected to provide additional synergy between Ford and Azure in the Transit Connect BEV project.

    <<
    Transit Connect commercial platform ideal choice for battery electric
    power
    >>

The Ford Transit Connect already is a proven global success. Ford introduced the gasoline-engine Transit Connect to North America this year. With a unique combination of car-like driving dynamics, cargo capacity, accessibility and low purchase and operation costs, it is an ideal choice for electrification. Commercial users often travel predictable, short-range routes with frequent stop and go driving in urban and suburban environments. For customers seeking sustainable mobility solutions, the Transit Connect Battery Electric Vehicle with Azure Force Drive(TM) will provide a zero emissions option.

The Transit Connect was designed, engineered and manufactured on a dedicated global commercial vehicle platform to beat tough commercial vehicle durability standards. The final manufacturing location for the Transit Connect BEV has not yet been determined.

About Ford Motor Company

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 201,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com.

About Azure Dynamics Corporation:

Azure Dynamics Corporation (TSX: AZD) 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 various 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.

Forward-looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning Azure's business development strategy, projected commercial revenues and product deliveries.

The forward-looking statements are based on certain key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs, target market acceptance of Azure's products, 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 on which the forward-looking statements are based 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 inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with Azure's early stage of development, lack of product revenues and history of losses, requirements for additional financing, uncertainty as to commercial viability, uncertainty as to product development and commercialization milestones being met, uncertainty as to the market for Azure's products and unproven acceptance of Azure's technology, competition for capital, product market and personnel, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability of management and key personnel, and acquisition integration risk. These risks are set out in more detail in Azure's annual information form which can be accessed at 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.

Go to http://media.ford.com for news releases and high-resolution photographs.

SOURCE: Azure Dynamics Corporation

SOURCE: FORD MOTOR COMPANY

Jennifer Moore, (313) 248-2335, Jmoor186@ford.com; Bud Liebler, (313) 832-4324,
Bud@lieblergroup.com