Westport's high-efficiency distributed power generation technology now in full-scale operation

VANCOUVER, Oct. 16, 2003 -- Westport Innovations Inc. (WPT:TSX) announced today that its proprietary distributed power generation technology installed in the City of Grande Prairie, Alberta, has been integrated into the Alberta power distribution system and is fully operational. The generator was primarily installed as a back-up unit for the wastewater treatment plant, however the City, through its utility corporation Aquatera Utilities Inc., is now also using the unit as a source of revenue, exporting up to 1.6 megawatts (MW) of power capacity to the Alberta Power Pool. This distributed generation system is powered by an engine using an advanced version of Westport's direct injection technology. This technology enables a low-emissions natural gas generator set to retain power density, fuel economy and responsiveness equivalent to a diesel-powered generator set.

This first full-scale operation of this latest stationary engine technology, developed by Cummins Westport Inc. (CWI), operates at approximately 85% lower NOx and 20% less greenhouse gas emissions levels than a diesel-fueled equivalent without requiring expensive after-treatment. Release of particulate matter (PM) has been cut to less than 50% of the 2006 EPA Tier 2 emissions standards. CWI has two other generator sets in field trial operation, located in Anaheim, CA and Vancouver, BC.

"We have deployed this exciting new technology as a demonstration on stationary engines, and we also see opportunities to apply this to mobile engines in the future to help meet increasingly stringent standards" said Dr. Patric Ouellette, Chief Technology Officer for Westport. He added that with the combination of low cost natural gas fueling and high operating efficiency, Westport's generator set is suitable for a wide range of power generation applications. This includes applications where waste heat recovery is used for combined heat and power.

The August 2003 blackout in parts of the US and Canada confirmed the power transmission vulnerability that officials had been predicting for at least two years. With most of North America's power interconnected in a 200,000-mile network of transmission lines susceptible to such widespread failure, the use of distributed power generation can improve availability for power consumers. Using natural gas engines in power generation has the added advantage of reduced greenhouse gases and dependence on insecure sources of oil.

The distributed generation market in North America, although widely discussed over the past decade, is only now emerging. Westport's power generation program is still in the demonstration phase and the company intends to monitor market demand and the preconditions for a significant product launch. Some analysts forecast potential demand of up to 130 gigawatts (GW) of product in the distributed generation market over the next decade.

Westport Innovations Inc. is the leading developer of gaseous fuel engine technologies. It develops, manufacturers and sells a wide range of engines for commercial transportation applications such as trucks and buses through Cummins Westport Inc., its joint venture with Cummins Inc. Technology development alliances are in place with a number of other leading engine manufacturers, including Ford, MAN, Isuzu, and BMW to develop engines that operate using cleaner-burning fuels such as natural gas, propane, hydrogen, and blended fuels such as HCNG.

Note: This document contains forward-looking statements about Westport's business, operations, technology development or to the environment in which it operates, which are based on Westport's estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond Westport's control. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Westport disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

  For further information please contact:
  Gordon Neal - Director, Investor Relations
  Phone: (604) 718-2046, Fax: (604) 718-2001
  Email: invest@westport.com, Web: www.westport.com