Southern California Commits to Westport Technology for Trucks

VANCOUVER, British Columbia--Dec. 8, 2004--Westport Innovations Inc. (TSX:WPT) today announced an award of US $1.95 million from the South Coast Air Quality Management District (AQMD) to advance the development of Westport's proprietary High Pressure Direct Injection (HPDI) technology for heavy-duty truck engines.

The AQMD oversees air quality for the 16 million residents of Orange County and major portions of Los Angeles, San Bernardino and Riverside counties. Under the program, Westport will continue developing its HPDI natural gas fuel systems for 450 horsepower Cummins ISX engines to meet approaching emissions regulations for oxides of nitrogen (NOx) and particulate matter (PM) emissions set by the United States Environmental Protection Agency and California Air Resources Board.

"California is the clear leader in emissions regulations and clean air technologies. AQMD's commitment, partnership, and support are critical as we advance from technology development, to market development and demonstration, to commercial release," said Dr. Michael Gallagher, Westport's President and Chief Operating Officer. "We are very encouraged that AQMD recognizes the potential of Westport's HPDI program to contribute to cleaner air for Southern California."

In its announcement of the award, the AQMD cited Westport's HPDI technology as an important component in the district's efforts to achieve U.S. air quality standards and reduce dependency on petroleum-based fuels. The AQMD believes this project will expedite the commercialization of low emission alternative fuel heavy-duty engine technology in California, both in the Basin and intrastate operation.

Dr. John Wall, Cummins Vice President and Chief Technical Officer said, "Westport's HPDI technology promises excellent fuel efficiency, power density, and transient response in engines. We are encouraged by its performance and emissions results to date. Westport continues to work to develop commercial products based on this technology, and we are delighted to see this support for continued development by the South Coast AQMD."

The AQMD project complements Westport's overall program to develop and deploy the next generation of HPDI trucks, which will achieve emission levels and reduce greenhouse gas emissions and petroleum use. The AQMD contribution is part of a larger heavy-duty truck program undertaken by Westport and its partners. Westport recently announced a US $1.5 million cost-sharing subcontract with the U.S. Department of Energy's National Renewable Energy Laboratory.

Westport is validating the benefits and capabilities of HPDI trucks in real-world application while building strategic relationships with customers, industry partners, and policy-makers and is working to encourage private and public investment in fuel infrastructure, fuel pricing programs and purchase incentives.

HPDI technology uses natural gas in a diesel cycle while maintaining diesel-like attributes of high performance and efficiency, and reducing emissions of NOx and PM, greenhouse gases, and dependency on petroleum resources. With HPDI engines, approximately 95% of diesel consumed in a diesel heavy-duty truck is displaced with natural gas. HPDI natural gas engines can produce approximately 50% less NOx, 90% less PM, and 15%-25% less carbon dioxide emissions than equivalent diesel engines.

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., our 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.

The South Coast Air Quality Management District (AQMD) is the air pollution control agency for Orange County and major portions of Los Angeles, San Bernardino and Riverside counties.

Note: This document contains forward-looking statements about Westport's business, operations, and 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.