April 22, 2003

Azure Dynamics receives engineering contract from the Department of National Defence

Vancouver, B.C. – Azure Dynamics Corporation, a British Columbia based developer of hybrid electric powertrains for commercial vehicles announced it has been awarded an engineering contract from the Department of National Defence (“DND”).

Under the terms of the agreement, The DND will contract Azure to determine the feasibility of converting existing military vehicles from traditional diesel power to hybrid electric power. Azure will determine and recommend the most cost effective solution for retrofitting a military vehicle with a hybrid powertrain. Upon successful delivery of the engineering study for hybrid electric conversion, the DND will authorize the second phase of this program.

Campbell Deacon, CEO of Azure Dynamics said, “We are very pleased to have been awarded this contract and look forward to working with the DND to develop a vehicle that fulfills their requirements.”

Azure Dynamics Corporation is an innovative company that has developed proprietary hybrid electric vehicle technology for the light and medium duty commercial vehicle category. Azure was the recipient of the Canadian Energy Efficiency Award 2003 from Natural Resources Canada in the category of transportation (light duty commercial vehicles) and also received the 2002 Applied Energy Innovation Award from the Canadian Institute of Energy (BC).

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