Cummins Westport receives funding commitment for hydrogen-natural gas bus engine trials

VANCOUVER, March 20 -- Cummins Westport Inc., a joint venture of Cummins Inc. of Columbus, Indiana and Westport Innovations Inc. (TSX:WPT) of Vancouver announced today it is part of a team led by SunLine Services Group that has received a $770,000 (US$476,000) funding commitment for a bus engine field trial using a hydrogen-natural gas fuel blend.

SunLine Services Group is part of SunLine Transit Agency of Thousand Palms, California. SunLine provides transit and other services for a community of approximately 320,000 in the Coachella Valley, 120 miles east of Los Angeles. The U.S. Department of Energy's National Renewable Energy Laboratory and California's South Coast Air Quality Management District (AQMD) are each providing approximately $385,000 (US$238,000) for the project. Approximately 46% of the funding will be used by Cummins Westport for equipment and engine testing.

"The goal of the project is to verify that hydrogen-natural gas fuel blends can be used under normal work conditions while reducing pollution, greenhouse gas emissions and dependence on fossil fuels," said Barry Wallerstein, Executive Officer, South Coast AQMD. "It will also help pave the way for a hydrogen fueling infrastructure needed for fuel cell vehicles in the future."

Hugh Foden, President of Cummins Westport, added, "President Bush's new hydrogen fuel initiative has helped to focus attention on the importance of hydrogen as a fuel for future transportation needs. We think the fastest and most economic pathway to hydrogen is through the development of gaseous fuel engines for transit buses and other fleet vehicles."

SunLine has selected the Cummins Westport 5.9-liter B Gas Plus engine, an advanced, 230-horsepower natural gas engine launched in October 2002, for the blended fuel program. Cummins Westport has begun testing the B Gas Plus to develop a calibration for operation on a hydrogen-natural gas fuel blend.

SunLine operates a fleet of 146 vehicles, of which 67 natural gas transit buses and street-sweepers have Cummins Westport natural gas engines. As previously disclosed, if the program is successful SunLine has indicated it may convert all of its vehicles to a hydrogen-natural gas fuel blend, producing lower emissions than natural gas alone, while preserving performance, safety, and maintainability. SunLine natural gas buses will require little change other than engine software under this program.

In April, after engine testing is complete, SunLine expects to place two B Gas Plus-powered transit buses in revenue service using the hydrogen-natural gas fuel blend, along with two control buses with B Gas Plus engines operating on natural gas. SunLine, an innovator in testing experimental, low-emissions heavy-duty vehicles, plans a three-month, 24,000-mile on-road testing program.

Previous tests have shown that a mixture of 20% hydrogen and 80% natural gas, called Hythane(R), can reduce emissions of oxides of nitrogen and greenhouse gases without affecting the performance and efficiency of a natural gas engine. Hydrogen Components Inc. of Littleton, Colorado, which led the previous Hythane(R) engine tests, is an advisory member of the current project team.

Cummins Inc. is a global power leader in engines, electrical power generation systems and related technologies. Westport Innovations Inc. is the leading developer of natural gas fuel systems for diesel engines. Cummins Westport Inc., formed in 2001, develops and markets low-emissions alternative fuel engines manufactured by Cummins. The Cummins Westport B Gas Plus engine is manufactured by Cummins in Rocky Mount, North Carolina.

Note: This news release contains forward-looking statements about Cummins and Westport business and technology development plans based on the current expectations of management. Cummins and Westport caution investors that due to risks and uncertainties, actual events may differ materially from current expectations.

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