Azure Dynamics Common Share Purchase Warrants Exercised

Azure Dynamics Corp. (Vancouver, BC), a leading developer of hybrid-electric power trains for commercial vehicles, announced that all outstanding December 1, 2004, common share purchase warrants have been exercised. Additionally, 99.5% of the warrants were exercised by the warrant holders with the balance of 0.5% taken up by the underwriters in accordance with an underwriting agreement executed in July 2004.