1. 2005 Joint Service Power Expo May 4, 2005 Hybrid Electric Military Vehicles with Export Power Capability

2. Page 2 Azure Dynamics Completes Acquisition of US-based Solectria Toronto, Ontario – January 31, 2005 Azure Dynamics CorporationAzure Dynamics Corporation (TSX – AZD & LSE - ADC) (“Azure Dynamics”, or the “Company”) a leading developer of hybrid electric powertrains for commercial vehicles today announced that it had successfully completed the acquisition of Solectria Corporation (“Solectria”), a leading US hybrid electric powertrain and components supplier.TSX – AZDLSE - ADC “With the acquisition of Solectria, Azure Dynamics becomes a world leader with probably the largest dedicated engineering group in hybrid commercial vehicles. The combined companies will provide a broad range of hybrid commercial powertrains and will have a customer base and sales in North America, Europe and the Far East,” said Mr. Campbell Deacon, Chief Executive Officer of Azure Dynamics Corporation. Azure Dynamics acquired all the outstanding shares of Solectria in exchange for 25,297,655 of its common shares, resulting in Solectria’s former shareholders now owning approximately 19.8% of the Company’s issued and outstanding common shares. The newly issued shares have been conditionally approved for listing on the Toronto Stock Exchange. Application has also been made for the shares to be admitted to AIM and trading on AIM is expected to commence at 8.00 a.m. on February 4 th, 2005. Solectria will henceforth operate as Azure Dynamics US Inc. Azure Dynamics CorporationAzure Dynamics Corporation and its group of companies provide hybrid electric and electric vehicle technology for commercial and military vehicles. Azure Dynamics is a public company trading on both the TSX exchange in Canada as well as the AIM market in London, UK. The Company is a world leader in the development and manufacture (outsourced) of hybrid electric and electric commercial vehicles and systems. In its history, the group has delivered more than 4,000 electric and hybrid electric vehicles (greater than 25 million miles of vehicle experience). 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 has employees based in North America and Europe. For more company information please visit our website at www.azuredynamics.com. www.azuredynamics.com

3. Page 3 Fuel is the largest single budget item Logistical issues Reduced logtail Reduced cost Tactical issues Silent mobility Silent watch Capability Better range Export power The Army’s Interest in Hybrid Electric Technology

4. Page 4 Better Efficiency due to Fewer Energy Conversions System Cost is Less Due to Fewer Components System Weight is Less Due to Fewer Components Less Intrusive to Vehicle Drive Easing Installation Does not Limit Vehicle Performance Azure is a Strong Advocate for Parallel HE Drives

5. Page 5 Up to 50% Reduction in Fuel Consumption Up to 90% Reduction in Emissions Reduced Maintenance Requirements Idle Reduction Silent Watch/Mobility Export Power Capability System Benefits

6. Page 6 Design to Provide Compelling Economic Case Electric Launch in Inefficiency Range Operate as Conventional Vehicle in Most Efficient Range 20-60 MPH Use Ultracaps as Energy Storage When Possible Drive Fans and Pumps Electrically When Possible Azure’s Design Philosophy

7. Page 7 HE HMMWV Repower NAC initiated HMMWV Repower Partners include Roush Industries, International, and Solectria Replaces 6.5L turbo diesel with 4.5L twin turbo diesel mated to a 30kW starter/motor/generator (Parallel hybrid) Includes 15kW distributed power 30% more power and torque 100% better fuel economy

8. Page 8 HE FMTV Stewart & Stevenson National Automotive Center Solectria System Design  ISA  48 kW Export Power

9. Page 9 Export Power Fuel Consumption Reduction > 30% Silent Watch/Mobility Power Generation – Replace TQG Reduced Logistical Footprint

10. Page 10 Second Generation APDS 15 kW 3-Phase, 4-Wire Inverter Output: 120V/220 Single Phase 208V 3-Phase Selectable 50, 60, or 400 Hz Output Voltage Frequency Two Unit Paralleling Capability, Providing 30 kW of 3-Phase Power

11. Page 11 NAC –HMMWV with ISA and Export Power National Automotive Center Solectria System Design  ISA  15 kW Export Power  Bi-Direction DCDC Converter

12. Page 12 General Engine Products –HMMWV with ISA and Export Power Phase 1 Demonstrator for AUSA Phase 2 for Rodeo 1 Phase 1 System Design  ISA  30 kW Export Power

13. Page 13 Baseline Firefinder Section Requires Four HMMWV’s, eight Soldiers Provides 90 Degrees of Coverage and Requires 15 Minutes to Emplace Fixed Site Operations Disrupt Coverage for Mobile Operations High Mobility Firefinder Section Using Four HMMWV’s, and eight Soldiers Provides 180 Degrees of Coverage and Requires 2 Minutes to Emplace Operate-on-the-Move C3 Node Improves Support for Mobile Operations High Mobility Configuration Provides 200% Increase in Area Coverage And 87% Reduction in Emplacement Time Raytheon - High Mobility Firefinder with Export Power

14. Page 14 High Mobility Firefinder Configuration With Integrated Onboard Power In 51 Minute Period (Consisting of two 5 minute movements), A Single High Mobility Firefinder Achieves 38 Minutes of Operational Time Compared to Baseline Firefinder 6 Minutes – A 633% Increase 024681012141618202226384042243628303234 MOVEMENT START ARRIVE IN POSITION RADAR EMPLACED MOVEMENT ORDER MOVEMENT START MOVEMENT START ARRIVE IN POSITION RADAR EMPLACED MOVEMENT ORDER MOVEMENT START ARRIVE IN POSITION ARRIVE IN POSITION RADAR EMPLACED OPERATIONAL MINUTES 4850524644 RADAR EMPLACED OPERATIONAL Operational Uptime Current v. High Mobility Firefinder Configuration

15. Page 15 High Mobility Firefinder Configuration Provides 200% Capability in Single C-130 Lift High Mobility Firefinder Configuration Provides 200% Capability in Single C-130 Lift Tactical Lift Improved

16. Page 16 AMCOM Aviation APDS Shop Equipment Contact Maintenance (SECM) Shelter Programs New Aviation Ground Power Systems (NAPS) 48 kw, 3 phase, 4 wire 110/120vac, 60 hz 115/200vac, 400 hz 28 vdc, 500-750 amps 270 vdc, 20 kw

17. Page 17 Collective Protection CBPS APDS Chemical/Biological Protective Shelter HMMWV Based 20 kW, 3 phase, 4 wire 110/120vac, 60 hz 115/200vac, 400 hz 28 vdc

18. Page 18 Thank You! Mark Federle Vice President, Sales (781) 932-7455 mfederle@azuredynamics.com www.azuredynamics.com