News Release

Purolator to take delivery of 115 Azure hybrid electric vehicles

Canada’s largest courier first to deliver cleaner air with new environmentally friendly fleet

Purolator Courier Ltd., Canada’s largest courier company, today signed an order for 115 new hybrid electric vehicles (HEV) for its curb-side delivery fleet from Azure Dynamics Corporation (TSX-AZD & LSE-ADC).

After analyzing the environmental impacts of its operations and services, Purolator identified fleet fuel usage and vehicle air emissions as the best way to reduce its environmental footprint. The commitment to order 115 HEVs comes just four months after introducing HEVs to Purolator’s fleet through a controlled rollout out of the diesel series hybrid delivery vans into daily service. Purolator has already accumulated more than 20,000 km's of in-service mileage with the curb-side delivery vans. The additional HEVs will be integrated into Purolator’s fleet in major metropolitan areas in Canada. Deliveries of the first vehicles will begin in 2006.

“Given commercial realities, Purolator is committed to doing what it can to have a positive impact on the environment. Maintaining our delivery standards to our customers is very important to us, so we are very pleased that the technology is performing at the high specifications that we established at the outset. The performance gives us the required confidence to embark on the next phase of fleet replacement with Azure’s hybrid electric vehicle technology,” said Robert Johnson, President and CEO of Purolator.

The HEVs demonstrate Purolator’s commitment to being a responsible corporation that protects and preserves the environment by reducing the impact of its operations and services. Pre-production testing has shown that the HEVs are capable of eliminating up to 50 per cent of greenhouse gasses currently emitted with conventional gasoline/diesel delivery vehicles as well as significant reductions in fossil fuel emissions. If the experience of these vehicles continues to live up to expectations, then as Purolator replenishes its fleet each year – the company intends to add up to 400 HEV vehicles to its fleet annually.

“The 115 hybrid electric vehicle order is the largest of its kind in the delivery industry. We are proud to be associated with Purolator and believe their bold leadership will be instrumental in changing the way the industry does business. Azure will continue to achieve and exceed the performance standards necessary for Purolator and others to make such ground breaking orders,” said Campbell Deacon, CEO of Azure Dynamics.

HEVs are best used in fleets whose driving cycles are constant stop and go. Energy is regenerated through braking and stored in the battery for driving. Purolator’s HEVs are equipped with a hybrid series configuration, which uses the internal combustion engine combined with a generator to supply electricity for the battery pack and electric motor. There is no mechanical connection between the internal combustion engine power unit and the wheels. All motive power is transferred electrically to one or more electric traction motors that drive the wheels.