Isuzu and Westport Sign New CNG Collaboration Agreement

VANCOUVER, Jan. 20, 2004 -- Westport Innovations Inc. (TSX:WPT) today announced it has signed a new collaboration agreement with Isuzu Motors of Japan to further advance their development partnership.

Isuzu and Westport will assess the global market opportunity for the monofuel CNG-powered direct injection technology the two companies have developed. Isuzu will provide funding for Westport to continue technical development of key technologies for the project while the marketing analysis is underway.

Michael Gallagher, Westport's Chief Operating Officer, said, "We are pleased to have this new agreement, formalizing our ongoing and expanding relationship with Isuzu. This follows on successful efforts in 2003 to demonstrate the viability of the technology, including the completion of the prototype truck and its success at the Michelin Challenge Bibendum in September."

The Isuzu-Westport entrant in the 2003 Michelin Challenge Bibendum was the prototype ELF CNG-DI truck, equipped with a 4.5 litre monofuel engine using Westport's direct injection technology. The vehicle was awarded best-in- class with two gold medals (efficiency and emissions) and a silver medal (vehicle noise). The Michelin Challenge Bibendum is the world's premiere competition for environmental, advanced technology engines.

Westport Innovations Inc. is a leading developer of gaseous fuel engine technologies. It develops, manufactures 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. 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 on Westport Innovations Inc., please contact:

  Gordon Neal
  Director, Investor Relations
  Phone: 604-718-2046   Fax: 604-718-2001
  Email: invest@westport.com   Web: www.westport.com