Ultimately, Azure intends to offer a
full range of series and parallel hybrids. Azure will
continue to work to achieve and exceed the performance standards necessary for
Purolator and others to make such ground breaking orders.5 million pieces (delivery and pick up) each
week for destinations across Canada and around the world. Azure Dynamics Corporation is a
public company trading on the TSX (AZD) in Canada and on AIM (ADC) in the UK.com.

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

Scott Lindholm, Cobasys Chief Sales Officer, noted "We are pleased to be
working with ISE Corporation on this important military project. For more information about Cobasys' products
contact Ray Wagner, Vice President of Marketing at 248-620-5765 or visit our
website at http://www.

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For more
information please visit the company website at http: //www.

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Campbell Deacon, CEO of Azure Dynamics said, "The 115 hybrid electric
vehicle order is the largest of its kind in the delivery industry. 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 has an extensive service network, with over 11,500 employees,
including more than 3,500 couriers, over 140 operations locations, over 155
Shipping Centres, over 550 Authorized Shipping Agents and more than 420 drop
boxes. The system also incorporates the newly developed Cobasys Hawkeye(TM)
algorithm, which assures accurate and reliable battery state-of-charge for
optimum vehicle system operation.

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Deliveries of the first vehicles will
commence in 2006.
For more company information please visit http://www.S. (Nasdaq: ENER).Cobasys .

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We are
proud to be associated with Purolator and believe their bold leadership will
be instrumental in changing the way the industry does business. ISE is a
leader in the design and development of hybrid drive systems for commercial
applications."
ISE Corporation, based in San Diego, is a leading supplier of hybrid drive
systems and components for heavy-duty vehicles such as buses, trucks, trams,
airport equipment, and military vehicles.

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, Canada Post, US Department of
Defense, United States Postal Service, SEV Group Limited, Leyland Product
Development and London Taxis International. The plug and play
NiMHax battery packs include battery monitoring, electronics , CAN
communications and thermal management.
Cobasys designs and manufactures advanced Nickel Metal Hydride (NiMH)
battery system solutions for transportation markets, including HEV, Electric
Vehicles (EV) and 42 volt applications, in addition to Stationary Back-Up
power supply systems for large Uninterruptible Power Supply systems (UPS),
Telecom and Distributed Generation markets .

tanfield hybrid

purolator.

azure ise

"
Robert Johnson, President and CEO of Purolator remarked, "Given
commercial realities , Purolator is committed to doing what it can to have a
positive impact on the environment. of
Mississauga , Ontario is committed to its customers.

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Azure continues to advance it's product through various test
prototypes to preproduction vehicles.

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The order placed by Purolator marks a significant move forward regarding
Purolator's commitment to replace its urban courier vans with environmentally
sensitive vehicles."

About Purolator
---------------
As Canada's largest courier company , Purolator Courier Ltd. This system contains 96 Series
1000 battery modules and is designed to deliver 576 Volts and 240 kilowatts of
power.

aerovironment azure

"
According to Debbi Bourke, Cobasys Program Engineer , "The Cobasys NiMHax
576-240 battery system supplied to ISE offers longer life and more power in a
smaller, lighter package than typical lead acid batteries.

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("Purolator"), Canada's largest courier company, has executed an order to
purchase 115 new hybrid electric vehicles. Purolator is
committed to helping alleviate hunger in Canada, and works closely with the
Canadian Association of Food Banks to support local communities. Azure Dynamics' operations are based in North America and Europe." Mike Simon, Chairman of the Board of ISE, commented that "The
Cobasys NiMHax battery packs are an ideal solution for the FMTV project due to
the complete integration of all necessary components to provide a safe,
reliable high performance battery pack.
ISE recently displayed an FMTV development vehicle with the Cobasys packs at
the Clean Heavy Duty Conference held in La Quinta, CA.

unmanned wheeled

Eric Johnson , Cobasys Manager of Transportation Sales for the program,
noted "The NiMHax 576-240, our battery system solution for ISE is part of our
standard pack architecture.

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15 - Azure Dynamics Corporation
(TSX - AZD + LSE - ADC) ("Azure Dynamics" or the "Company") a leading
developer of hybrid electric and electric powertrains for commercial and
military vehicles is pleased to announce that Purolator Courier Ltd. ISE's advanced control system will enable the FMTV
to travel for several miles on battery power alone, with the engine turned
off, thereby providing a "stealth" operating capability sought by the Army.

electric unmanned

The high performance FMTV, built by Stewart + Stevenson Tactical
Vehicle Systems, is the "platform of choice" for combat arms and other support
applications. This is a very exciting application because it is
one of the largest NiMHax HEV packs available. The high power, 240kW, and liquid
cooled NiMHax packs are ideal for military applications where dirt, dust and
water intrusion are concerns.

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TORONTO, Sept.azuredynamics. ISE is a world leader in electric,
hybrid -electric, and fuel cell technologies, and the U.

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It gives us the
confidence to embark on the next phase of fleet replacement with Azure's
hybrid electric vehicle technology. Purolator operates Canada 's largest dedicated air express
fleet.

ise hybrid

Purolator Courier Ltd. orders 115 Azure hybrid electric vehicles

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The group estimates it has over 25 million miles of vehicle
experience."
The ISE hybrid drive system is expected to offer several benefits,
including improved fuel economy, reduced harmful emissions, greater operating
range and reduced noise. distributor for
Siemens ELFA electric and hybrid-electric drive components.

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Azure Dynamics Corporation is a world leader in the development and
production of hybrid electric and electric commercial and military vehicles
and systems.
Azure Dynamics is currently working internationally with various partners
and customers including Purolator Courier Ltd.

ISE Selects Cobasys NiMHax Packs for Development of U.S. Army Family of Medium Tactical Vehicles (FMTV) Demonstration Project

, Cobasys, a leader in
advanced NiMH battery technology , announced today that it was selected by ISE
Corporation to provide its NiMHax battery packs for development of a new
hybrid-electric powertrain for the Army's Family of Medium Tactical Vehicles
(FMTV).

Manufacturers of electric-powered vehicles (two, three and four wheeled)

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We are pleased that the technology
continues to perform at the high standards we need to see in order to maintain
our excellent delivery performance for our customers.com .

electrically propulsion

In September 2003, Azure Dynamics and Purolator signed a
supply agreement for the replacement of up to 2,000 conventional powered
vehicles with Azure powered hybrid electric vehicle technology. Purolator processes over 5.
Cobasys is a joint venture between ChevronTexaco Technology Ventures, an
operating unit of ChevronTexaco Corporation (NYSE: CVX) and Energy Conversion
Devices, Inc.

electric azure

The order now
placed by Purolator represents the first commercial production vehicles to be
produced by Azure under that agreement and comes after a period of extensive
pre-production testing by both Purolator and Azure of Purolator vans outfitted
with Azure powertrain technology.com. ORION, Mich.

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