Annual General Meeting Azure Dynamics 2009 Scott T. Harrison Chief Executive Officer 3 Forward-Looking Statements

This presentation may contain forward-looking statements that reflect current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. For more information on the risk factors related to these forward-looking statements, please refer to Azure Dynamics’ AIF and the Company’s periodic regulatory filings. 4

Driving a World of Difference

Top Line Growth 173% Growth • Technology Balance Sales • Partners Double • Savings

Margin & Performance Improvement 42% Improvement Cash Flow • Technology for 2010 • Partners Positive • Savings

33% Reduction Break Even Focus on Core Products • Focus 5 Strategic Approach

Best Technology AZD’s Family of System Solutions Full Hybrid Mid Hybrid Pure Electric

Combined with Strategic Partnerships with Market Leaders

Focused on Fleets who Spend 50% of Operating Costs on Fuel 6

Competitive Landscape

Passenger Vehicles Class 3 – 5 Class 6 - 8 Transit Vehicle Class Light Duty Medium Duty Heavy Duty Buses

• Ford 70% Share • Azure only shuttle bus through Altoona

Ford Ford / Azure Volvo BAE/Allison Manufacturers

GM Ford 50% Market Share / Eaton I-SAM ISE/Wright Iveco Honda Orion International / Eaton International/Enova Toyota Toyota / Hino

Azure is focused on Medium Duty Trucks, where there is a limited competition and its partnership with Ford’s 50% market share is key 7

BalanceTM Hybrid Electric Strategy

Strong Best Target Channel Partner Technology Applications Strategy

Distributors

• 40% MPG Direct Ford has 50% market improvement share in Class 2C-5 • 30% Reduction in commercial vehicles Greenhouse Gas • 30% Reduction in Dealers maintenance cost 8

Government Stimulus

Customer “Buy Down” Direct Purchases Grants Support GSA CARB DOE (Transportation $500M allocated for purchase of $15 - $20K coupon for hybrid Electrification) medium duty trucks Azure submitted grant proposal to develop PHEV and electric delivery USPS Clean Cities Coalition (DOE) 2200 vehicle fleet of step to Submissions make for purchase of be replaced with green vehicles 300 vehicles DOE (Component Manufacturing) Azure has demo with USPS Azure submitted grant proposal TIGGER Funding (FTA) with NAVC to expand component State DOT’s Submission for 40 busses manufacturing of advanced Stimulus driving “green” purchases purchased by FTA electrical devices

>$12M in Grants Requested Responses expected by September 2009

Government Actions Strongly Supplement AZD’s Strategy 9

Sales Progress

Balance Hybrid 500 • Order Size Increasing • Customer List Expanding 400 • Oil Price Rising

?? • Economy Improving 300 Units ?? 200 Total Orders of Units 250 Units 171 100 Expected as of Units June 2009 0 2008 2009 2010

BalanceTM Hybrid Becoming the Dominant Solution Ron Iacobelli Chief Technology Officer 11

Balance Performance

Development Highlights Program launch from concept to production in under 2 years Production launched in June 2008 on E-450 stripped and cutaway chassis Altoona test on Shuttle Bus variant completed in September 2008, production start of shuttle bus variant January 2009 IRS Tax Credit approval received for both the 2008 and 2009 model years based on certified fuel economy test results

Product Features & Highlights Industry’s only medium duty full parallel hybrid commercial vehicle with: idle-off and electric launch Plug-in hybrid compatible regenerative braking 30-40% MPG