Azure Dynamics Closes Pounds Sterling 5,250,050 Financing.

TORONTO -- Azure Dynamics Corporation (TSX:AZD)(LSE:ADC) ("Azure Dynamics" or the "Company") a leading developer of hybrid electric powertrains for commercial and military vehicles announced today that it has closed the financing that it previously announced on February 15, 2005. The Company has issued 12,805,000 common shares at a price of 41 pence per share (approximately CDN$0.96) thereby raising gross proceeds of Pounds Sterling 5,250,050 (approximately CDN$12.2 million). Conditional approval of the financing was received from the Toronto Stock Exchange on February 16, 2005.

After expenses, net proceeds from the financing are expected to be approximately CDN$11.6 million. The net proceeds of the financing, combined with cash on hand, will provide the Company with available cash funds of approximately CDN$22 million.

Azure Dynamics Corporation and its group of companies is a world leader in the development and production of hybrid electric and electric commercial and military vehicles and systems. The group estimates it has over 25 million miles of vehicle experience. Azure Dynamics' operations are based in North America and Europe.

Azure Dynamics is currently working internationally with various partners and customers including Purolator Courier Ltd., Canada Post, DHL, London Taxis International, US Department of Defence, Leyland Product Development, Renault Trucks UK and the United States Postal Service. Azure Dynamics Corporation is a public company trading on the TSX (AZD) in Canada and on AIM (ADC) in the UK. For more company information please visit our website at www.azuredynamics.com.

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

Azure Dynamics Corporation (TSX:AZD) (LSE:ADC)