August 18, 2006

Azure Dynamics formalizes supply agreement for hybrid shuttle buses

Toronto, Ontario - Azure Dynamics Corporation, a Vancouver-based developer of hybrid electric and electric powertrains for commercial and military vehicles, has announced it has signed a definitive supply agreement for the production of hybrid shuttle buses with StarTrans. The companies had previously announced a Memorandum of Understanding.

Under the agreement, Azure will provide StarTrans with hybrid cab-chassis; StarTrans will assemble the shuttle bus body at its manufacturing facilities in Goshen, Indiana. After successful testing, the bus will be eligible for the U.S. Federal Transit Administration's funding for bus purchases.

"Our supply agreement with StarTrans represents a significant milestone for Azure Dynamics as we focus on increasing our penetration in the North American shuttle bus market," says Campbell Deacon, CEO of Azure Dynamics. "More than 10,000 shuttle buses are sold each year in North America, and with federal and state funded subsidization programs available in the U.S. for shuttle bus operators that adopt environmentally cleaner hybrid solutions, this sector represents a compelling opportunity for both Azure and StarTrans. We are very pleased to have such a strong partner in StarTrans and we look forward to bringing a hybrid HD Senator Series shuttle bus to market."

In testing, Azure's hybrid delivery vans demonstrated nearly a 50 per cent reduction in fuel consumption on a mile-per-gallon basis in city driving, compared to conventional chassis; they also significantly reduced vehicular emissions, achieving reductions of up to 83 per cent in hydrocarbon, 91 per cent in carbon monoxide and 53 per cent in nitrogen oxide emissions. The two companies will commence jointly marketing the new hybrid shuttle bus at the Bus-Con in Chicago in October 2006.

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