TMX group

TORONTO, Oct. 4 /CNW/ - Azure Dynamics Corporation (TSX - AZD &       
LSE - ADC) ("Azure Dynamics" or the "Company") a leading developer of hybrid
electric and electric powertrains for commercial and military vehicles is
pleased to announce the sale of four 20-passenger hybrid electric shuttle
buses to UPROSE (the United Puerto Rican Organization of Sunset Park) made
possible with a grant from the New York Power Authority (NYPA).
The hybrid electric "Citibus" employs the same chassis and hybrid
electric drive system currently used in delivery vans supplied to other Azure
customers. The hybrid chassis is fitted with a conventional shuttle bus body.
"The sale of these four buses demonstrates the continued successful
launch of our Citibus product. We are pleased to be working with UPROSE in
support of their mission to provide a clean environment for the residents of
Sunset Park in Brooklyn. Our Citibus product improves fuel economy by as much
as 40% and reduces emissions by up to 90% when compared to a conventional
shuttle bus," said Mark Federle, Azure's Vice-President, Sales.
"Working with electric drive component developers to introduce emission
reduction technologies is a major goal for the New York Power Authority," said
NYPA President and Chief Executive Officer, Eugene W. Zeltmann. "We have
successfully worked with Azure Dynamics on several electric drive projects and
look forward to additional opportunities to improve air quality for all New
Yorkers."
The purchase of the Citibuses was made with funding and support from
NYPA. UPROSE will distribute the buses to the Al Noor School, the Chinese-
American Planning Council, and the Sunset Park Senior Center. "Not only have
these organizations been involved with the NYPA project from the beginning,
but they also represent constituencies that range in age and ethnicity to
reflect the diversity of Sunset Park," stated Elizabeth Yeampierre, UPROSE's
Executive Director. "Through projects like the purchase of hybrid shuttle
buses, UPROSE hopes to raise the awareness of pollution reduction efforts."

NYPA is the largest state-owned electric utility in the United States and
operates a diversified electric transportation program responsible for placing
750 electric and hybrid electric drive vehicles in service with its public
sector and economic development customers.

Founded in 1964, UPROSE is Brooklyn's oldest Latino community-based
organization. As an intergenerational community-based organization dedicated
to the development of southwest Brooklyn and the empowerment of its residents
primarily through broad and converging environmental, sustainable development
and youth justice campaigns. UPROSE aims to ensure and heighten community
awareness and involvement, develop participatory community planning practices,
and promote sustainable development with justice and governmental
accountability.

Azure Dynamics Corporation is a world leader in the development and
production of hybrid electric and electric commercial and military vehicles
and systems. The group estimates it has over 25 million miles of vehicle
experience. Azure Dynamics' operations are based in North America and Europe.
Azure Dynamics is currently working internationally with various partners
and customers including Purolator Courier Ltd., Canada Post, US Department of
Defense, United States Postal Service, SEV Group Limited, Leyland Product
Development and London Taxis International. Azure Dynamics Corporation is a
public company trading on the TSX (AZD) in Canada and on AIM (ADC) in the UK.
For more company information please visit www.azuredynamics.com.

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                      accuracy of this release.