November 29, 2002

London Taxis signs with Canadian company for hybrid electric technology

Vancouver, B.C. – Azure Dynamics Corporation, a developer of hybrid electric systems for commercial vehicles, and London Taxis International, a leading manufacturer of purpose-built taxis, are pleased to announce the signing of a Memorandum of Understanding concerning a joint program to develop and produce advanced hybrid electric powered taxis.

Under the terms of the MOU, Azure and London Taxis agree to work towards a
development agreement and supplier relationship for hybrid electric
powertrains for current and new generation taxis; annual volumes are projected
to be up to 3,000 vehicles.

Campbell Deacon, Chairman and CEO of Azure Dynamics said, “Taxis are core
constituents of our modern city lifestyles; with the enhancement of hybrid
electric technology they can now become a significant contributor to smog
reduction, thus improving the quality of the environment in which we live and
work. We are particularly pleased to establish this MOU with London Taxi
International. The London taxi is a recognized icon around the world. Not only
are the potential volumes large for Azure, the exposure of Azure’s “Smart
Energy Management System” in one of the leading financial and cultural centres
of the world will help our company to educate people of its environmental and
economic benefits.”

Ian Pickering, CEO of Manganese Bronze Holdings PLC (100% owner of London
Taxi International) stated that “London Taxi is continually focused on
providing the best possible vehicles to taxi operators. We believe the Azure
Dynamics hybrid electric option will become a popular transport choice”

Azure Dynamics Corporation is an innovative company that has developed
proprietary hybrid electric vehicle technology for retrofit and new vehicle
powertrains in the light and medium duty commercial category. Azure’s
intellectual property combined with interchangeable, off-the-shelf components
provides an affordable and effective solution for fleet managers in
applications such as the postal and courier delivery fleets.

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