REG-Azure Dynamics Corporation: Issue of Equity

Attention Business Editors:
Azure Dynamics announces issuance of stock options

OAK PARK, MI, Jan. 15 /CNW/ - Azure Dynamics Corporation (TSX: AZD & LSE:
ADC) ("Azure" or the "Company"), a leading developer of hybrid electric and
electric powertrains for commercial vehicles has granted 875,000 stock options
to the Directors of the Company. The annual option grants to Directors are
made as part of Azure's Director Compensation Policy.
The options were granted by the Compensation Committee on January 1, 2008
and approved at the Board of Directors meeting on January 15, 2008. The
options have an exercise price of 19.34p (CDN $0.38) which was the TSX closing
price of the Company's shares on December 31, 2007. The options are issued
pursuant to the Company's stock option plan, have a seven-year term and are
subject to applicable vesting provisions.
Pursuant to and in accordance with the terms of the Company's stock
option plan, the Company granted share options to directors as follows:

Azure Dynamics Options Granted
Directors Grant Date (ordinary shares) Exercise Price

Nicholas O. Brigstocke 01-01-2008 75,000(x) 19.34p
D. Campbell Deacon 01-01-2008 75,000(x) 19.34p
Robert A. Donaldson 01-01-2008 75,000(x) 19.34p
James J. Padilla 01-01-2008 75,000(x) 19.34p
Dennis A. Sharp 01-01-2008 75,000(x) 19.34p
Scott T. Harrison 01-01-2008 500,000(xx) 19.34p

(x) The options granted are exercisable immediately and expire on
December 31, 2014.
(xx) The options granted to Mr. Harrison, the Executive Director, vest
over a twenty-four month period starting with a 1/3 on April 14,
2008 and a further 1/3 on each anniversary date. The options
expire on December 31, 2014.

About Azure Dynamics

Azure Dynamics Corporation (TSX: AZD) (LSE: ADC) is a world leader in the
development and production of hybrid electric and electric components and
powertrain systems for commercial vehicles. Azure is strategically targeting
the commercial delivery vehicle and shuttle bus markets and is currently
working internationally with various partners and customers. The Company is
committed to providing customers and partners with innovative, cost-efficient,
and environmentally-friendly energy management solutions.
For more information please visit www.azuredynamics.com.

The TSX and LSE Exchanges do not accept responsibility for the adequacy
or accuracy of this release.

Forward-looking Statements

This press release contains forward-looking statements. More
particularly, this press release contains statements concerning Azure's
business development strategy, projected commercial revenues and product
deliveries.
The forward-looking statements are based on certain key expectations and
assumptions made by Azure, including expectations and assumptions concerning
achievement of current timetables for development programs, target market
acceptance of Azure's products, current and new product performance,
availability and cost of labour and expertise, and evolving markets for power
for transportation vehicles. Although Azure believes that the expectations and
assumptions on which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking statements because
Azure can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of factors
and risks. These include, but are not limited to, the risks associated with
Azure's early stage of development, lack of product revenues and history of
losses, requirements for additional financing, uncertainty as to commercial
viability, uncertainty as to product development and commercialization
milestones being met, uncertainty as to the market for Azure's products and
unproven acceptance of Azure's technology, competition for capital, product
market and personnel, uncertainty as to target markets, dependence upon third
parties, changes in environmental laws or policies, uncertainty as to patent
and proprietary rights, availability of management and key personnel, and
acquisition integration risk. These risks are set out in more detail in
Azure's annual information form which can be accessed at www.sedar.com.
The forward-looking statements contained in this press release are made
as of the date hereof and Azure undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by applicable
securities laws.

For further information: Steven Glaser, Vice-President, Corporate Affairs,
(416) 367-0220, Email: sglaser@azuredynamics.com; David Poutney, Stuart Skinner,
Richard Kenny, Tel: +44 207 260 1000, Numis Securities Limited, Nominated
Adviser to the Company
(ADC)

END