September 18, 2006

Azure Dynamics to provide chassis for hybrid shuttle buses

Azure Dynamics, based in Toronto, has signed a definitive supply agreement with StarTrans, a North American commercial bus manufacturer, for the production of hybrid electric shuttle buses. Under terms of the agreement, Azure will provide hybrid cab-chassis on which StarTrans will assemble shuttle bus bodies at its manufacturing facilities in Goshen, Indiana. The manufacturer intends to use its HD Senator Series model for the production of hybrid shuttle buses.

When fully assembled, the Azure/StarTrans hybrid electric shuttle bus will be compliant with the United States' Buy-America program and after successful testing, would be eligible for the Federal Transit Administration's funding for bus purchases.

Campbell Deacon, CEO of Azure Dynamics, noted that, "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."

"This hybrid electric shuttle bus will be the first available commercially-produced unit," said Sam Craig, a vice-president with StarTrans. "We have 38 distribution points around North America and we are exited about the potential for this product," he added.

Azure's hybrid shuttle bus cab-chassis utilizes the same G1 Series hybrid delivery truck chassis currently in production and integrates Azure's newly developed shuttle bus cab. Its hybrid systems offer significant fuel and maintenance savings for shuttle bus operators. Tests of Azure's hybrid delivery vans demonstrated nearly a 50% reduction in fuel consumption on a mile per gallon basis in city driving, compared to conventional chassis. The hybrid chassis was also found to reduce vehicle emissions significantly, achieving reductions in hydrocarbon, carbon monoxide and nitrogen oxide emissions of up to 83%, 91% and 53% respectively.

Azure and StarTrans plan to jointly market the hybrid shuttle bus via the StarTrans dealer and distributor network. They will begin by displaying the new hybrid shuttle bus at Bus-Con in Chicago in October 23-25th. More information is available from Steven Glaser at Azure Dynamics, 416/367-0220, ext 105, E-mail sglaser@azuredynamics.com, Web site www.azuredynamics.com, or on the StarTrans Web site, www.startransbus.com.

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