Westport Signs New Collaboration Agreement with Isuzu for Compressed Natural Gas Direct Injection engine (CNG-DI) technologies

VANCOUVER, British Columbia--Sept. 7, 2004--Westport Innovations Inc. (TSX: WPT) has signed a new joint partnership and funding agreement with Isuzu for the application of Westport's Compressed Natural Gas Direct Injection engine (CNG-DI) technologies on Isuzu commercial ELF vehicles.

Isuzu will provide to Westport approximately CDN$1.5 million for the design and construction of two next-generation CNG-DI ELF trucks which will be delivered in 2005. The new vehicles will use Westport's electronic, directly actuated, high-pressure natural gas fuel injectors, on-board compressor system, electronic controls and hot surface ignition system. The cooperative development work will be performed in advanced engine laboratories in Japan and Canada.

This continued collaboration follows from the successful first-generation technology development program completed in June 2004 and a joint marketing study that showed strong global sales potential for CNG-DI vehicles in Japan, China, other Asian countries, North America, and Europe. Westport and Isuzu will continue to review the global market opportunities for CNG-DI vehicles as the program prepares for approval for commercial production.

Westport and Isuzu's first generation CNG-DI ELF truck successfully combined the power and efficiency of a diesel engine with clean CNG technology. The prototype ELF won two gold awards and one silver award at the 2003 Michelin Challenge Bibendum competition for excellent fuel economy, ultra low exhaust emissions, and low vehicle noise.

"At Isuzu, we believe that the direct injection technologies we are advancing with Westport represent the future of natural gas fuel systems providing the high thermal efficiency and ultra-low exhaust emissions our customers will require. We are also studying the prospect of applying these systems to Isuzu's full-range of trucks and buses," said Mr. Takashi Urata, Executive, Powertrain Engineering at Isuzu in Tokyo.

Masaki Okada, Isuzu's Senior Specialist, Engine Design and Development, will present a paper on Westport and Isuzu's CNG-DI technology development work at the upcoming 9th IANGV (International Association for Natural Gas Vehicles) biennial Conference and Exhibition on October 27 in Buenos Aires, Argentina.

The Japanese Ministry of Land, Infrastructure and Transport (MLIT) recently announced its full-scale support for the move towards CNG use in vehicles, away from diesel vehicles, as they emit fewer harmful emissions, according to Kyodo News. Beginning in early 2005, the MLIT plans to promote CNG vehicles in the cities of Tokyo, Nagoya, and Osaka, set up public and private initiatives to establish more CNG fuelling stations, expand subsidies for CNG vehicles, and lower CNG prices. There are currently 270 fuelling stations for 20,000 CNG vehicles in Japan.

"We are very pleased to have signed this new agreement with Isuzu, which provides significant funding over the next year for our ongoing technology development and demonstration partnership. We look forward to working with Isuzu to create the next-generation vehicles with the ultimate goal of satisfying customers around the world with clean natural gas trucks using our CNG-DI technologies", stated Dr. Michael Gallagher, Chief Operating Officer, Westport Innovations Inc.

Westport Innovations Inc. is the 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 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.

Isuzu Motors Limited is one of the world's leading manufacturers of commercial vehicles and diesel engines and ranks number one globally in medium-duty and heavy-duty truck production with the Isuzu ELF as Japan's best-selling light-duty truck. Isuzu promotes conservation of the global environment and is committed to the development and dissemination of clean diesel and low pollution, environmentally positive vehicles that run on alternative fuel.