Westport Innovations Inc.

Westport Innovations Inc.

January 17, 2005 09:05 ET

Westport Signs MOU with Guangxi Yuchai Machinery Co. Ltd.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WESTPORT INNOVATIONS INC.

TSX SYMBOL: WPT

JANUARY 17, 2005 - 09:05 ET

Westport Signs MOU with Guangxi Yuchai Machinery Co.
Ltd.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2005) - Westport
Innovations (TSX:WPT) today announced it has signed a Memorandum of
Understanding with Guangxi Yuchai Machinery Co. Ltd. (Yuchai) to work
together on exploring business opportunities to develop, market, and
sell gaseous fuelled vehicles in the People's Republic of China (PRC)
using Westport's portfolio of direct injection technologies.

Yuchai, one of China's largest engine manufacturers for light-, medium-
and heavy-duty buses and trucks, is 76.4% owned by China Yuchai
International Limited (NYSE:CYD). Yuchai's primary manufacturing
facilities are located in Yulin City, Guangxi Zhuang Autonomous Region
in Southern China, which is approximately 380 miles west of Hong Kong.
In 2003, Yuchai had sales of 172,000 units. The company has a
nation-wide network of over 500 authorized service centers and 25 sales
offices in China.

"China has a growing demand to use natural gas in transportation
applications to deal with its environmental concerns and energy security
issues" said Dr. Qin Li, Senior Technical Advisor of the Chief Executive
Officer of Yuchai. "We are looking forward to working with Westport,
which has proven itself to be a world leader in internal combustion
engine technologies using CNG, LNG and hydrogen, to bring clean
environment engine solutions to China's transportation market."

Phil Hodge, Westport's Vice President responsible for Westport's China
expansion said Westport feels extremely fortunate to be working with one
of the premier engine manufacturers in China to advance the use of
Westport's CNG and LNG technologies for transportation. "Yuchai's market
depth and expertise in China will enable Westport to bring our
environmental technologies to the Chinese marketplace faster, and more
effectively," said Hodge.

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.

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.

-30-

Contact Information