Azure Dynamics Receives Record 600 Unit Balance(TM) Hybrid Truck Order Via Its First Multi-year Contract With Purolator

Purolator places record order for 600 BalanceTM Hybrid Electric units to be delivered over the next three years at 200 units per year. Purolator will operate the world's largest fleet of Azure's BalanceTM Hybrid Electric vehicles with 955 units, including the 2011-2013 deliveries Azure Dynamics Corporation is the world's #1 provider of hybrid electric powertrain solutions in the medium duty commercial hybrid truck market where it controls approximately 60% market

Azure Dynamics Corporation , a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles, today announced that it has received a record 600 unit order from Purolator. The order is the single largest order of hybrid electric technology for Azure Dynamics. 200 units will be delivered in 2011 with an additional 200 units scheduled in both 2012 and 2013, subject to annual authorizations by Purolator.

"Purolator continues to be our largest volume customer and consistently demonstrates a strong commitment to the environment by adding cleaner, greener Azure vehicles to its fleet," said Scott Harrison, Chief Executive Officer of Azure. "As a result of our long and mutually beneficial relationship with Purolator, our BalanceTM Hybrid Electric volume has consistently increased allowing us to reduce internal costs, refine our processes and implement product upgrades. Meanwhile, Purolator's proactive fleet managers have been able to substantially reduce tailpipe emissions, operating costs and improve overall efficiency of their fleet. This relationship is a manifestation of what will ultimately drive hybrid electric and electric powertrain market share increases."

"Purolator is proud to invest in the environmental welfare of Canada," said Serge Viola, Director, Fleet and Ground Line Haul for Purolator. "Still, environmental stewardship requires a balance with customer satisfaction objectives that require predictable, on-time deliveries. We have extensive experience with the Azure product and continued confidence that the vehicles can perform well and meet the requirements of our hard working fleet."

The initial allotment of 200 units will be built and delivered primarily in the third and fourth quarters of 2011 and will be delivered to Purolator facilities across Canada. All units will include the BalanceTM Hybrid Electric second generation architecture characterized by the Johnson Controls-Saft lithium ion battery plus many other upgrades designed to improve efficiency, reliability and durability. As a result, the BalanceTM Hybrid Electric can improve fuel economy by up to 40%, while reducing carbon emissions by up to 30% in city conditions. The drive train also offers a significant reduction in maintenance costs versus conventionally equipped competitors.

"Considering Purolator's extensive real-world experience operating our BalanceTM Hybrid Electric product in its fleet, this order is an especially rewarding product validation," said Harrison. "This order is also our first multi-year order in the hybrid electric truck market and helps us to build a predictable product backlog."

Purolator operates a fleet of 3,500 vehicles and is consistently rated as one of Canada's most admired corporate cultures. In 2005, Purolator was the first express transportation company in Canada to introduce hybrid electric vehicles. Among the many Purolator locations receiving new hybrid electric vehicles, 43 have been added to the Halifax and Dartmouth fleet, making Purolator's City of Halifax fleet 100 per cent hybrid electric. An additional 60 BalanceTM Hybrid Electric vans have been added in Guelph, while 19 have been added in Niagara, and finally, 79 in the Greater Toronto Area.

The Azure BalanceTM Hybrid Electric vehicles ordered by Purolator are integrated on a Ford E450 chassis with a Ford 5.4L gasoline engine. The hybrid electric drive train features unique attributes such as engine-off at idle and below 20 miles per hour, while electronically supporting key ancillary functions like power steering and braking, is ideally suited for commercial activity in urban environments.