OAK PARK, Michigan, December 14, 2011 /PRNewswire/ --

  • Azure Dynamics and RøhneSelmer, Ford Motor Company's market leading dealer in Norway, sign a "Letter of Intent" to sell up to 400 Transit Connect Electric vans annually
  • RøhneSelmer has placed 158 orders in its first nine months as a Transit Connect Electric dealership and sees continued strong demand in the Nordic Region
  • RøhneSelmer's major customers include Norway Post (Posten Norge AS) and other major commercial customers

Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF) ("Azure" or the "Company"), a world leader in the development and production of hybrid electric and electric components and powertrain systems for light and medium duty commercial vehicles, and RøhneSelmer AS announced today that they signed a Letter of Intent (the "LOI") to enter into an agreement whereby RohneSelmer will import and distribute up to 400 Ford Transit Connect Electric vans annually.  The LOI is not a purchase order, but rather sets in motion a collaborative effort to reach a definitive distribution agreement within the coming weeks to further develop the business in the Nordic Region. RøhneSelmer will focus its importation, distribution, sales and service effort in Norway.

In March, 2011, RøhneSelmer supported Azure's inaugural European Transit Connect Electric sale of 58 vans, including 20 vans to Post Norway (Posten Norge AS) via its five locations in and around Norway and in August, 2011, placed an order for 100 additional vans.

"The Transit Connect Electric European market continues to develop quickly," said Scott Harrison, CEO of Azure Dynamics.  "This arrangement with RøhneSelmer will offer Azure and its Transit Connect Electric a sophisticated distribution platform to further develop the significant opportunities we see in the Nordic Region.  This agreement exemplifies how we are leveraging our valued partners like RøhneSelmer and, as a result, we believe our mutual customers will be well served in the most expedient manner possible."

RøhneSelmer reports that the Transit Connect Electric is proving itself to be the right EV van for today's Norwegian market and that consumer interest is strong and growing.

"Norway has a great appreciation for electric vehicles to help achieve our aggressive environmental goals," said Christian August Selmer, RøhneSelmer's owner.  "Our experience shows that the Transit Connect Electric has the right performance and cargo characteristics to meet the needs of a large customer base in Norway."

Pursuant to the LOI, RøhneSelmer will submit purchase orders each calendar quarter with a target of up to 400 vans annually.  Azure and RøhneSelmer point out that the LOI is neither an indication of future sales, nor a guarantee of actual sales.  The LOI confirms the intentions of Azure and RøhneSelmer to enter into a definitive agreement for the importation, distribution, sale and service of the Transit Connect Electric in the Norwegian region.

The Transit Connect Electric offers Norwegian customers the opportunity to eliminate petroleum fuel bills, take advantage of car-pool lanes and to lower overall maintenance and operating costs. The vehicle is an ideal choice for battery electric power thanks to its unique combination of car-like driving dynamics, generous cargo capacity, easy accessibility and low operating costs.  Transit Connect Electric can be recharged in approximately eight hours using standard European 220-volt outlets.

To create the Transit Connect Electric, Azure integrates its proven Force Drive[TM] electric powertrain into the award-winning Ford Transit Connect. Utilizing an advanced lithium-ion battery from Johnson Controls, Transit Connect Electric can achieve a range of 80KM/50 miles to 130KM/80 miles on a single charge and has a load capacity of 530 kgs. With 28 kWh of power to call on, Transit Connect Electric has a top speed of 120 km/h (75 mph). The product has been brought to market at a time when increasing numbers of fleet operators are demanding the benefits of efficient, clean alternative powered vehicles.

The Transit Connect Electric went into production in Europe in June, 2011 following its successful production launch in North America in April, 2011. Since the Transit Connect Electric was introduced in North America in December 2010, global Transit Connect Electric sales have exceeded $29 million.

About Azure Dynamics

Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF) is a world leader in the development and production of hybrid electric and electric components and powertrain systems for light and medium duty commercial vehicles. Azure is strategically targeting the commercial delivery vehicle and shuttle bus markets and is currently working internationally with a variety of partners and customers. The Company is committed to providing customers and partners with innovative, cost-efficient, and environmentally-friendly energy management solutions.  For more information on how Azure Dynamics products are Driving a World of Difference, please visit http://www.azuredynamics.com.

The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements Advisory

Certain information included in this press release constitutes forward-looking statements and information and future-oriented financial information under applicable securities legislation and is provided for the purpose of expressing management's current expectations and plans for the future.  Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.

More particularly, this press release contains statements concerning Azure's anticipated business development strategy and sales and deliveries of the Transit Connect Electric. The forward-looking statements are based on a number of key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs and sales, target market acceptance of Azure's products, specifically the Transit Connect Electric, current and new product performance, availability and cost of labor and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions used to develop the forward-looking statements are reasonable, undue reliance should not be placed on the forward-looking statements because Azure can give no assurance that they will prove to be correct.

Since forward-looking statements address future events and conditions, by their very nature they involve numerous risks and uncertainties that contribute to the possibility that the projections and forecasts in the forward-looking statements will not occur and that actual performance or results could differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks associated with Azure's stage of development, history of losses and lack of historical product revenues, uncertainty as to product development and sales milestones being met, product defect and performance risks, competition for capital and market share, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability and retention of management and key personnel, exchange rate and currency fluctuations, uncertainties relating to potential delays or changes in plans with respect to product development or capital expenditures, the ability of Azure to access sufficient capital on acceptable terms, and environmental and safety risks. This is not an exhaustive list and additional information on these risks and other factors that could affect Azure's operations and financial results are included in reports on file with the Canadian securities regulatory authorities and can be accessed through the SEDAR website at http://www.sedar.com. 

The forward-looking statements contained in this press release are made as of the date hereof and Azure undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.  Additionally, Azure undertakes no obligation to comment on the expectations of, or statements made by, third parties about Azure.

For further information:

Ricardo Espinosa, Managing Director European Operations, +44(0)1438-729819

Email: respinosa@azuredynamics.com 



Juris Pagrabs, Vice President, Investor Relations, +1(248)298-2403 ext 7570

Email: jpagrabs@azuredynamics.com



Copyright 2011 PR Newswire

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