News Release

Purolator Announces Signing an Order for up to 2,000 Canadian-made Hybrid Electric Vehicles

Vehicles to Dramatically Reduce Emissions and Increase Fuel Efficiency

September 22, 2003 - Toronto, ON

Purolator Courier Ltd, Canada's largest overnight courier company, is pleased to announce today the signing of an agreement with Azure Dynamics Inc., a subsidiary of Azure Dynamics Corp., (TSX Venture Exchange - AZD), based out of Toronto and Vancouver. Purolator hopes that this is the first step towards replacing the vast majority of its 3,700 urban delivery vehicles. Today's order with Azure Dynamics means that Purolator is the first courier company in Canada to begin the transition to hybrid electric vehicles.

"We're delighted to be able to invest in technology that is environmentally friendly and efficient," said Purolator President and CEO Robert Johnson. "We are sure that on-going reductions in green house gas emissions and fuel savings will make this a true win-win investment for us and for the environment."

After months of field testing with Azure-equipped vehicles, Purolator saw green house gas emissions reduced by up to 50% while fuel efficiency increased by up to 50%.

"We're equally delighted to have found made-in-Canada technology that accommodated Canadian road and weather conditions and that met our fleet requirements," Johnson added.

An order of 30 will be filled in 2004 with the new vehicles to be deployed in Toronto. If the experience with these vehicles lives up to expectations, then as Purolator replenishes its fleet each year the company may add up to 400 hybrid electric vehicles annually beginning in 2005.

"We know this first step will help alleviate some of the air pollution problems that can exist in a large city. Given the millions of kilometres our vehicles cover each year filling customer orders, we're going to see, over time, a truly significant reduction in pollutants while at the same time, cutting our reliance on fossil fuel," Johnson concluded.

Before undertaking the purchase, Purolator had to assure itself that the Azure technology would meet its standards for dependability and performance with acceptable maintenance costs under 'real-world' conditions.

"First and foremost, we had to ensure that our customers would continue receiving the standard of service they're used to from Purolator," said Ray Pedersen, Senior VP of Operations and Field Sales at Purolator. "So we put the vehicle through rigorous testing in Calgary and Vancouver during the fall and winter of 2002/2003. The technology and its reliability passed with flying colours, giving us the confidence to place this order and to plan an on-going program of fleet replacement."

Arif Khan, Purolator Hybrid Electric Vehicle Courier Driver said he really enjoyed test-driving the new vehicles. "They performed well and were much quieter," he noted. "They were so quiet in fact, that it was hard to tell if the vehicle was even running at times. The increased fuel efficiency and low emissions did not compromise the range or acceleration of the vehicle in any way."

As part of Purolator's corporate environmental program, the new hybrid electric vehicle purchase joins Purolator's "No Idling" rule and the tractor-trailer emissions reduction program.

About Purolator
As Canada's leading overnight courier company, Purolator Courier Ltd. of Mississauga, Ontario is committed to making shipping the easiest part of the day for its customers. From automated solutions to 24 hour pick up and delivery, Purolator provides customers with the services and customized solutions required to get their shipments across town or around the world. Purolator operates Canada's largest dedicated air express fleet. Purolator has an extensive service network, with over 12,500 employees, including more than 4,000 couriers, over 140 operations locations, over 170 Shipping Centres, over 490 Authorized Shipping Agents and more than 800 drop boxes. Purolator processes over 5.5 million pieces (delivery and pick up) each week for destinations across Canada and around the world.

About Azure Dynamics
Azure Dynamics Corporation is an innovative company that has developed proprietary hybrid electric vehicle technology for the light and medium duty commercial vehicle category. Azure was the recipient of the Canadian Energy Efficiency Award 2003 from Natural Resources Canada in the category of transportation (light duty commercial vehicles) and also received the 2002 Applied Energy Innovation Award from the Canadian Institute of Energy (BC). For more information, visit the company website at www.azuredynamics.com.

For PR inquiries please contact;

Tracey Pearce-Dawson
Corporate Communications Consultant
Purolator Courier Ltd.
(905) 712-1084 Ext. 3851