Isuzu To Develop Natural Gas Powered Truck with Westport

VANCOUVER, Nov. 27, 2002; Westport Innovations Inc. announced today that it has agreed with Isuzu Motors of Tokyo, Japan, to develop a prototype Isuzu ELF truck powered with a Westport Cycle(TM) natural gas engine.

The project has been initiated by Isuzu, which will also fully fund it. Leading the effort is Isuzu's Powertrain Engineering Division and Natural Gas Group. The development will take place at Isuzu's engine manufacturing plant in Fujisawa, Japan. Westport will support Isuzu's vehicle team in producing, testing and calibrating the prototype vehicle. Westport will retain all ownership of its Westport Cycle intellectual property, which uses high- pressure direct injection to bring natural gas into the engine cylinder.

The Isuzu ELF truck will use a diesel engine in the 4-liter range that runs solely on natural gas using Westport's hot surface ignition technology. The natural gas version of the engine is expected to achieve the same performance and fuel efficiency as its diesel counterpart but with lower emissions and fuel costs. The ELF is Japan's No. 1 selling light-duty commercial truck with 32% of the market. Isuzu also proudly offers a natural ELF using spark-ignited engine technology, with an approximate 70% market share in Japan.

"Demonstrating this technology in one of our most advanced diesel-based commercial trucks represents a significant milestone in our relationship with Westport," said Takashi Urata, Isuzu's Executive Officer, Powertrain Office. "We are sponsoring this initiative because we are optimistic about prospects for the Westport Cycle in Isuzu diesel engines."

In June 2003, after internal testing and evaluation by Isuzu, the prototype vehicle will be demonstrated to the Japanese government, including the Ministry of Economy, Trade and Industry (METI) and New Energy and Industrial Technology Development Organization (NEDO). It will also be demonstrated to the Japan Gas Association (JGA)

The natural gas-powered direct injection engine will be based on an advanced diesel engine fitted with cooled exhaust gas recirculation and common rail fuel injection. The diesel-fueled version is currently in commercial production. The light- to medium-range ELF truck, which will have a payload capacity of 2-3 tonnes, is used for city deliveries, food services, light contracting and many other applications.

Westport currently has an agreement with Isuzu to test its proprietary Westport Cycle technology in an engine intended for light and medium duty trucks. Westport and Isuzu have commenced discussions to extend the current agreement, which expires in March 2003.

Isuzu is one of Japan's largest truck manufacturers and is the primary supplier of diesel engines to General Motors. In October 2002, General Motors acquired a majority stake in Isuzu's diesel-engine units in Europe and the U.S.

Westport's strategy is to develop natural gas technology for diesel engines through key strategic alliances. In addition to Isuzu, Westport has strategic alliances with Ford Motor Company of Dearborn, Michigan; and MAN Nutzfahrzeuge AG and BMW AG, both of Munich, Germany. Westport has a joint venture with Cummins Inc. of Columbus, Indiana.