Azure Dynamics Corporation

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• Azure Dynamics Corporation
• CIE/EMA Conference Feb 26/04

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History

• Smart Energy Management System developed by BC
  Research
• 1999, Azure Dynamics spun off to commercialise
  technology
• Technology developed over 8 years approx cost
  Cdn30m
• Award winning technology
• Sep 2003, Innovation Award for Sustainable
  Development (BC)
• Jan 2003, Applied Energy Innovation Award (Cdn
  Institute of Energy)
• Jan 2003, Canadian Energy Efficiency Award (Nat
  Resources Can)
• Publicly traded company on the TSX Venture
  Exchange

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Business Model No Manufacturing

• Dell Computer Model Azure controls optimisation
  expertise, IP and customers whilst using an
  existing customer manufacturing and delivery
  infrastructure
• Component Suppliers
• (ZF Sachs, Ford, Mototron)
• Chassis Assemblers
• (Workhorse, Detroit Chassis, LTI)
• Body Builder
• (Utilimaster, UCBC, LTI)
• Customer
• (Purolator, Canada Post, LTI, USPS)

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The Sales Cycle

• Data Acquisition
• Drive cycle, mileage, fuel consumption
• Prototype Demonstration
• Prove performance
• Business Case
• Mileage x fuel reduction maintenance savings
  Annual Savings / Capital Cost IRR
• Contract Signed Gateways/Guarantee
• Performance achievement / 3 year warranty

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Recent Commercial Agreements
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Canada Post

• up to 2000 vehicles over 5 years (New
  Retrofit) NAFTA requires RFP
• 5 Prototypes delivered in January 2004

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Purolator

• 2000 vehicles over 5 years starting Q1 2005
• Pre-Production 30 to be delivered starting
  end of 2004
• Initial launch as Series Hybrid

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USPS CRV Hybrid

• proposed gasoline hybrid w/2.3 L Ford Ranger
  engine 17KW inline electric motor
• USPS plans to purchase 160,000 new vehicles over
  8 yr period commencing 2006

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USPS 2 Ton Step Vans Powertrain Retrofit

• Up to 10,000 vehicles over 5 year period
• Target lifecycle cost benefit or neutral
• Proposed Diesel parallel hybrid with Ford 2.4L
  common rail PUMA engine 30 kw electric motor

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London Taxi TXII

• Up to 2000 vehicles per year starting Q3 2005
• Prototypes 2 by Q1 2004 (series hybrid) 1 in
  Q4 2004
• Parallel will use 1.4L Ford Gemini engine with
  17 kW motor

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Other UK Projects

• Azure is developing a new ground up delivery
  vehicle with Manganese Bronze, the first
  prototype will be delivered in July, 2004 the
  vehicle can be used as a goods delivery vehicle
  or as a shuttle bus
• Azure has a relationship with Leyland Product
  Development (LPD) and Zebra Batteries
  (Zebra). With a leading European truck
  manufacturer they are displaying an electric
  power train vehicle at the Commercial Vehicle
  Show in Birmingham, March 23 to 25, 2004. The
  vehicle will potentially be available as either a
  utility delivery van or a passenger minibus.

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Canadian DND US Military

• Currently a single vehicle study and prototype
  project
• Reviewed with US Military on June 20
• Target weight class of Humvee, G-Wagon

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