Azure Dynamics Announces MOU With StarTrans for Hybrid Bus Production

July 17, 2006 by Jeff Shepard

Azure Dynamics Corp. announced it has signed a Memorandum of Understanding ("MOU") for the production of hybrid shuttle buses with StarTrans, a business division of Supreme Corp. and one of North America's leading commercial bus manufacturers.

Under the proposed terms of the MOU, Azure will provide StarTrans with hybrid cab-chassis' on which StarTrans will assemble their shuttle bus body at its manufacturing facilities in Goshen, Indiana. StarTrans intends to utilize its HD Senator Series model line of shuttle buses. Azure's hybrid cab-chassis is a derivative of Azure's series hybrid chassis integrated with a newly developed cab. When fully assembled, the Azure hybrid electric shuttle bus will be compliant with the United States' Buy-America program and after testing will be eligible for the Federal Transit Administrations funding for bus purchases.

Azure's hybrid systems are intended to offer significant fuel and maintenance savings for shuttle bus operators. Azure's systems have demonstrated nearly a 50% reduction in fuel consumption on a mile per gallon basis in city driving, compared to conventional chassis. Azure's hybrid chassis also significantly reduce vehicular emissions, achieving reductions in hydrocarbon, carbon monoxide and nitrogen oxide emissions of up to 83%, 91% and 53% respectively. Azure and StarTrans plan to jointly market the hybrid shuttle bus via the StarTrans dealer and distributor network.