Westport Innovations Inc.

Westport Innovations Inc.

January 24, 2007 12:00 ET

Westport Awarded AUD1.4 Million in Funding for LNG Truck Evaluation from Australian Government

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 24, 2007) - Westport Innovations Inc. (TSX:WPT) , a global leader in gaseous-fuelled power technologies, today announced the award of AUD1.36 million (C$1.27 million) from the Australian Government's Alternative Fuels Conversion Programme (AFCP) for a project to evaluate the use of LNG as a fuel for heavy-duty highway trucks in Australia. Mitchell Corp., Sands Fridge Lines and Murray Goulburn Cooperative, who each operate large fleets of long-distance trucks, will acquire four new Kenworth T404SAR trucks powered by 2008 model Cummins 15-litre engines incorporating Westport's LNG fuel technology. Emissions and performance tests will be performed to quantify greenhouse gas, noise, and regulated emissions benefits while demonstrating the performance and economic advantages of LNG in real world use in Australia.

"The price differential between diesel and LNG, combined with the very high mileage put on some of these trucks, could deliver over AUD130,000 (C$121,000) in annual fuel cost savings per truck," stated Bruce Hodgins, Westport's Vice President of Market Development. "Of course, LNG will also deliver lower nitrogen oxides, particulate matter and greenhouse gas emissions, including CO2, compared to operation on diesel fuel. Depending on the duty cycle and the test protocol used, we would expect 15% to 20% reductions in greenhouse gases or approximately 130 tonnes per year on a tank-to-wheel basis for a truck operating 400,000 kilometres per year."

For this program, Westport will adapt the North American version of its LNG system for Australian engines and operating conditions. This will include delivery of higher horsepower and torque ratings of 550 hp / 1850 lb-ft and 485 hp / 1650 lb-ft, and certification to the Australian ADR 80/02 emissions standard. This program will also provide information to allow the partners to assess their potential involvement in a commercial LNG truck offering in Australia. According to industry reports, over 10,000 new heavy duty trucks are sold in Australia each year.

About the Alternative Fuels Conversion Programme (AFCP)

The Alternative Fuels Conversion Programme is an Australian Government funding programme which aims to reduce greenhouse gas emissions from heavy commercial vehicles such as buses and trucks by encouraging increased use of alternative fuels or hybrid diesel/electric engines. The programme encourages commercial fleet operators to trial new technologies and to demonstrate their feasibility to the wider transport industry. The AFCP allows the Australian trucking industry to explore whether the potential environmental and economic advantages of natural gas can be demonstrated in Australia's harsh operating environment. www.greenhouse.gov.au/transport.

About Westport Innovations Inc.

Westport Innovations Inc. is a leading global supplier of alternative fuel power 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 Cryostar, Cummins, Ford, BMW, and Isuzu, as well as an ownership interest in Clean Energy, the largest provider of natural gas for vehicles in North America. Cummins Westport Inc., Westport's 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. BTIC Westport Inc., Westport's joint venture with Beijing Tianhai Industry Co. Ltd., manufactures and sells liquefied natural gas (LNG) fuel tanks for vehicles. www.westport.com.

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

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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