Cummins Westport Completes Agreement for Local Engine Manufacturing in India

VANCOUVER, British Columbia--Oct. 4, 2004--Cummins Westport Inc. (CWI) (TSX:WPT) and Cummins India Limited (CIL) have completed their formal license and supply agreement that grants CIL an exclusive license to manufacture, sell, and service CWI's B Gas International (BGI) natural gas engines throughout India for a period of six years. Manufacturing in CIL's state-of-the-art Daman facility in Western India is scheduled to begin in mid-2005.

"India is the third largest global market for natural gas buses after China and the USA but has high import tariffs. Local manufacturing of our lean-burn, spark-ignited BGI engine by CIL is key to our growth in India. CIL has extensive local manufacturing and marketing expertise as well as long-term relationships with India's largest OEM's. With these relationships, we will be able to access a vast customer base, leverage CIL's experience, and continue to lower product cost," said Hugh Foden, President of Cummins Westport Inc.

CIL Chairman & Joint Managing Director, Anant Talaulicar said, "Manufacturing and marketing the BGI natural gas engines in India will enable us to seize the opportunity to offer our markets innovative, state-of-the-art technology in the shortest time period. We are excited about the BGI range of products and expect them to be successful. The market is set to grow with the increased availability of natural gas resources in India and the environmental concerns this technology addresses. We hope to offer the product to markets outside India in the future."

Last October, India's national government announced an Auto Fuel Policy that requires all new vehicles in 11 of the worst-polluted cities including Delhi, Mumbai, Bangalore, and Ahmedabad meet Euro-III emissions standards from April 2005 and Euro-IV standards from April 2010. These cities comprise the majority of India's bus market, which averages approximately 25,000 new buses per year. Air quality in Delhi has improved significantly since a Supreme Court order mandating its bus fleets to convert to run on cleaner-burning compressed natural gas (CNG) came into effect in 2002. More cities are expected to follow Delhi in adopting natural gas as a vehicle fuel.

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 Inc. is the leading developer of clean natural gas and hydrogen-fueled engines.

Cummins India Limited, India's largest manufacturer of diesel engines since 1962, is the flagship company of the Cummins group in India whose subsidiaries include a joint venture between Tata Engineering and Cummins, Cummins Diesel Sales and Service, and Cummins Infotech. CIL has produced more than 167,000 engines to date in its manufacturing facilities in Pune.