Azure Dynamics Corp AZDDQ

NEWS

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Azure Dynamics and Kidron Sign Supply Agreement for Low Emission Electric Power ("LEEP") Systems for Refrigerated Trucks Toronto, Ontario - October 10, 2007 - Azure Dynamics Corporation (TSX: AZD & LSE: ADC) (“Azure” or the “Company”) a leading developer of hybrid electric and electric powertrains for commercial vehicles, today announced that it has signed a supply agreement with Kidron, Incorporated (“Kidron”), a division of VT Specialized Vehicles Corporation (“VT SVC”). The supply agreement encompasses branding, marketing and sale of Azure’s Low Emission Electric Power (“LEEP”) systems throughout the North American refrigerated truck body market. The Agreement structure has Azure providing Kidron with LEEP systems for integration into their cold plate refrigerated truck and truck body units. Kidron will market this product through its direct sales force and distribution channels across North America. “This formalized agreement represents a significant milestone for Azure, as we now have an industry-leader in the refrigerated truck segment actively marketing the LEEP system to their customers,” said Scott Harrison, Azure’s Chief Executive Officer. “We are excited to partner with an industry leader like Kidron, to help them advance their commitment to customer driven solutions.” Azure’s LEEP system uses the vehicle powertrain to generate clean electric power for a range of auxiliary and export power applications. The LEEP system delivers significant improvements in fuel utilization and emission levels by allowing the vehicle to power auxiliary loads with the engine off. The LEEP system has a wide range of applications beyond refrigeration including utility and telecomm. Azure believes that the LEEP market available to it is estimated at 160,