Westport Signs MOU with Beijing Sinogas Co., Ltd.

VANCOUVER, British Columbia--Dec. 6, 2004--Westport Innovations Inc. (TSX:WPT) today announced it has signed a Memorandum of Understanding with Beijing Sinogas Co. Ltd. (Sinogas) and Qingdao Sino-Canada S&T Park Co. Ltd. to work together on establishing a business plan to develop, market, and sell gaseous fuelled vehicles and infrastructure solutions in the People's Republic of China (PRC).

Sinogas is a company registered under the laws of the PRC, specializing in the construction of CNG/LNG stations and managing operations involving natural gas. Sinogas has registered subsidiaries in 15 cities in China and has constructed a CNG station network consisting of more than 60 CNG/LNG stations.

"China is now devoting major efforts to increase the proportion of natural gas used to deal with its environmental concerns and energy security issues, and our natural gas business has expanded in the past few years as a result" said Mr. Deng Tianzhou, President of Sinogas. "We are very excited to be working with Westport Innovations, who is a world leader in internal combustion engine technologies for the use of CNG, LNG and hydrogen, to bring environmental solutions to China's commercial transportation market."

"Westport is pleased to be working with Sinogas and Qingdao Sino-Canada S&T Park to advance the use of CNG and LNG in transportation applications in China. In the past year we have been studying and gaining a stronger understanding of the Chinese natural gas marketplace. Working with a company like Sinogas will enable Westport to bring environmental solutions to the Chinese marketplace faster, and more effectively." says Phil Hodge, Westport's Vice President responsible for Westport's China expansion.

Qingdao Sino-Canada S&T Park Co., Ltd. is an initiative between the National Research Council Canada and the Ministry of Science and Technology of PRC which was established to facilitate the technology and R&D collaboration between companies and organizations of the two countries.

"The Canadian government is very supportive of Westport's efforts to bring its environmental technology solutions to China, and we are very happy to have helped facilitate this venture between Westport and Sinogas," said Bruce Pridmore, Executive Director of the National Research Council Canada's Industrial Research Assistance Program. "Westport is one of Canada's leading clean energy companies and we think this will be an exciting opportunity to work together to develop solutions that will benefit both countries."

Westport Innovations Inc. is the leading developer of technologies that allow engines to operate on clean-burning fuels such as natural gas, hydrogen, and hydrogen-enriched natural gas (HCNG). Westport has technology development alliances in place with Ford, MAN, BMW and Isuzu, and an ownership interest in Clean Energy, the largest provider of vehicular natural gas in North America. Cummins Westport Inc., its joint venture with Cummins Inc., manufactures and sells the world's widest range of low-emissions alternative fuel engines for commercial transportation applications such as trucks and buses.

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.