Westport Innovations Inc.: Philippines Commits to CWI Engines for New CNG Transit Initiative

VANCOUVER, British Columbia--Sept. 3, 2004--Cummins Westport Inc. (CWI) (TSX:WPT) will supply 100 B-series compressed natural gas-fueled (CNG) engines for public transit buses in Metro Manila as part of the Philippine government's Natural Gas Vehicle Program for Public Transport (NGVPPT). These will be the first fleets of low-emissions CNG buses to be used in the country.

Philippine President Gloria Macapagal-Arroyo, on a 3-day China state visit, witnessed the signing of the supply agreement together with Energy Secretary Vicente Perez. "We can significantly reduce our dependence on oil imports by making natural gas our fuel of choice. It is not only indigenous, it is also a cleaner fuel," said President Arroyo when she unveiled her new energy agenda in August. She added that by 2005, the government expects 60 percent of the targeted 1,500 buses plying Metro Manila to run on CNG.

Secretary Perez said, "I am delighted to witness the purchase of the first batch of CNG buses today, which signals the final step towards the commencement of our natural gas public bus program early next year." Secretary Perez has personally pushed the introduction of buses running on cleaner, cheaper and indigenous natural gas.

The Department of Energy will accelerate incentives for NGVPPT fleet participants and will support building the necessary refueling infrastructure. President Arroyo has directed government financial institutions to extend financing to bus operators for the purchase of CNG buses. Fleet participants in NGVPPT include local bus operators HM Transport, Inc., NGV Adbus Corp., First CNG, Inc., Vergara, Greenstar Express, G-Liner, Pascual, and RRCG Transport Systems Co., Inc. Several other bus operators are expected to follow shortly.

"This marks a major milestone for CWI's expansion into Southeast Asia, and the Philippines has all the criteria of our key markets," said Steven Chapman, Chairman of CWI's Board of Directors and Cummins Vice President - International and General Manager, International Distributor Business.

"Our mission is to provide clean, sustainable transportation for the world's cities. We are encouraged by President Arroyo's vision for energy independence and commitment to clean air and the environment. CWI's successful partnership with Chinese OEMs offers the Philippines an economically viable yet environmentally-friendly solution to their energy independence and transit needs."

Chinese bus manufacturers led by Anhui Ankai Automobile and Zhengzhou Yutong Company will supply the new buses. Over 2000 CWI engines have been operating successfully throughout China since 1999. The engines will be manufactured in Cummins' joint-venture engine plant in Rocky Mount, North Carolina, USA and will be supported through Cummins Sales and Service Philippines.

Cummins Westport Inc., a joint venture of Cummins Inc. and Westport Innovations Inc. (TSX:WPT), develops and markets low-emissions, alternative fuel engines manufactured by Cummins. Cummins is a global power leader in engines, electrical power generation systems and related technologies. Westport Innovations is the leading developer of clean natural gas- and hydrogen-fueled engines.

Note: This document contains forward-looking statements about Cummins Westport's business, operations, technology development or to the environment in which it operates, which are based on Cummins 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 Cummins 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. Cummins 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.