TORONTO, July 19 /PRNewswire-FirstCall/ -- Azure Dynamics Corporation,
(TSX: AZD & LSE: ADC) ("Azure" or the "Company") a leading developer of
hybrid electric and electric powertrains for commercial and military
vehicles, today announced that it has received a CDN$2.8 million components
purchase order from DRS Sustainment Systems, Inc. (formerly DRS Engineered
Air Systems Inc.), an operating unit of DRS Technologies, Inc. (NYSE: DRS).
    Under terms of the purchase order, Azure will deliver advanced power
electronics, such as inverters, converters and under-the-hood export power
components to DRS to be integrated into DRS's Chemical Biological
Protective Shelter ("CBPS-M2"). The total contract, including previous
awards, is valued in excess of CDN$19.0 million for more than 220 systems.
    "Azure Dynamics has established itself in the forefront of suppliers of
vehicle-based hybrid and export power systems to the military, and we are
continuing to receive interest on several fronts for this application of
our technology," said Mark Federle, Azure's Senior Vice President, Sales.
The CBPS-M2 was jointly developed by Azure and DRS for military and
homeland security applications and provides a clean medical shelter
environment in chemically or biologically contaminated areas. The CBPS-M2
is deployed on a HMMWV (High Mobility Multipurpose Wheeled Vehicle) and
replaces the existing hydraulic-based system with state-of-the-art
electronic-based controls for better efficiency, reliability and
maintainability. The product demonstrates the flexibility and
interchangeability of Azure's components in hybrid and electric-based
vehicle architecture.
    About DRS Sustainment Systems
    Located in St. Louis, Missouri, DRS Sustainment Systems is part of the
DRS Sustainment Systems & Services Group, and designs and engineers various
types of equipment and systems that support the U.S. military. The company
is a leader in the design, development and production of complex military
hardware systems and has been providing military ground support equipment
to all branches of the U.S. military since World War II. DRS Technologies,
headquartered in Parsippany, New Jersey, U.S.A., is a leading supplier of
integrated products, services and support to military forces, intelligence
agencies and prime contractors worldwide. The company employs approximately
10,000 people. For more information on DRS, please visit the company's web
site at http://www.drs.com. DRS Technologies is at Farnborough International 2006
in the United Kingdom this week through July 23rd in Chalet C27-28.
    About Azure Dynamics Corporation
    Azure Dynamics Corporation is a world leader in the development and
production of hybrid electric and electric commercial and military vehicles
and systems. The Company estimates it has more than 25 million miles of
vehicle experience. Azure Dynamics' operations are based in North America
and Europe.
    Azure is currently working internationally with various partners and
customers, including Purolator Courier Ltd., Canada Post, United States
Postal Service, Smith Electric Vehicles, Workhorse Custom Chassis, DRS
Sustainment Systems, Inc. and AM General LLC. Azure Dynamics Corporation is
a public company trading on the TSX (TSX: AZD) in Canada and on the AIM
(LSE: ADC) in the UK.
       For more Company information please visit http://www.azuredynamics.com.

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                    adequacy or accuracy of this release.

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