Xcel Energy to be among first to receive Ford Transit Connect Electric

Azure Dynamics Corp., a hybrid electric and electric power train innovator for the commercial truck market, has named Xcel Energy to its “Lead Customer” program to receive a total of 13 vans. An initial van will be delivered in late 2010 with the remaining 12 vans scheduled for delivery in 2011. Ford Transit Connect Electric is a collaborative effort between Ford Motor Company and Azure and reflects the increasing interest in electrified vehicles for the commercial sector.

Xcel Energy, a major U.S. electricity and natural gas company, will add two of the 13 vans into its corporate fleet. The company will also provide $20,000 grants from its Chairman’s Fund to support the purchase of 11 additional Ford Transit Connect Electric vans for its project partners. These partners will agree to invest the remaining cost to take delivery of each van.

“We are excited to be part of this innovative initiative that will help encourage the market for electric vehicles and supports our company’s environmental leadership strategy,” said Dick Kelly, Xcel Energy chairman and CEO. “The Ford Transit Connect Electric is a significant technological achievement in electric transportation, and we want our company and key partners to be among the first to experience this new technology and to help promote it within the communities we serve.”

The Chairman’s Fund is provided through Xcel Energy shareholders, and supports innovative community projects that advance, demonstrate or promote clean energy technologies. Xcel Energy will help fund the vehicles for a number of municipalities, government agencies and businesses that wish to purchase the vehicles and demonstrate the technology. The city of Saint Paul, Minn., is expected to receive the first pre-production Ford Transit Connect Electric in late 2010. The company is finalizing agreements with others eligible to participate, including the city of Minneapolis and Hennepin County in Minnesota and the city of Denver in Colorado. All vehicles will be delivered by year-end 2011. Xcel Energy is also providing technical support and some electric distribution infrastructure to support the effort.

“Azure’s experience with electric vehicles spans more than 20 years and millions of miles driven,” said Scott Harrison, Azure Dynamics CEO. “Still, we understand that the overall electric vehicle market is in its infancy, and we believe strong partnerships with energy producers like Xcel Energy can lead to important developments for both sides. For this reason, we’re thrilled to welcome Xcel Energy to the Ford Transit Connect Electric lead customer program and are appreciative of its support in getting our product into the hands of several of its noteworthy customers.”

To create the Ford Transit Connect Electric, Azure Dynamics integrates its ForceDriveTM electric drive train into the body of a Ford Transit Connect, the dedicated global commercial van platform that received the 2010 North American Truck of the Year award.

“The Ford Transit Connect Electric is the first of five electrified vehicles we will launch over the next three years,” said Nancy Gioia, director of global electrification. “Through our partnership with Azure Dynamics, the Ford Transit Connect Electric will allow businesses like Xcel Energy to operate more environmentally-friendly while reducing its need for gasoline.”

Commercial van users often have predictable, short-range routes with frequent stop-and-go driving and high idle time; these are all performance characteristics that allow for maximum benefit of the Ford Transit Connect Electric and its ForceDriveTM powertrain.

The Ford Transit Connect Electric utilizes an advanced lithium-ion battery from Johnson Controls-Saft to achieve a range of up to 80 miles on a single charge and is rechargeable using either a 240-volt or standard 120-volt outlet. Commercial vans generally return to a central location at the end of each driving cycle making for easy overnight recharging. Use of the vehicles will also reduce fuel and maintenance costs, as well as reducing greenhouse gas emissions.

Azure Dynamics Corp. (TSX: AZD) (OTC: AZDDF) 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 a variety of partners and customers. The company is committed to providing customers and partners with innovative, cost-efficient, and environmentally-friendly energy management solutions.

Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company with regulated operations in eight Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.4 million electricity customers and 1.9 million natural gas customers through its regulated operating companies.

Ford Motor Company (NYSE: F), a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 159,000 employees and about 70 plants worldwide, the company’s automotive brands include Ford, Lincoln and Mercury, production of which has been announced by the company to be ending in the fourth quarter of 2010. The company provides financial services through Ford Motor Credit Company.