Westport Innovations Inc.

Westport Innovations Inc.

July 06, 2007 08:02 ET

Perseus LLC Announces Exercise of Convertible Debentures and Subsequent Secondary Offering of 16.5 Million Common Shares

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2007) -


Westport Innovations Inc. ("Westport") (TSX:WPT), announces that Perseus, L.L.C. ("Perseus"), a major shareholder, has agreed to exercise the conversion option on its $22.1 million of secured, subordinated convertible debentures and to sell the approximately 16.5 million common shares it receives to a syndicate of underwriters led by National Bank Financial Inc., on a bought deal basis at a price of $3.10 a share, for total gross proceeds of $51.3 million to Perseus. Westport will not receive any proceeds from this offering but has agreed with Perseus and National Bank Financial Inc. to file a short form prospectus to qualify the sale of the common shares in each of the provinces of Canada, excluding Quebec. The offering is subject to all necessary regulatory approval and is expected to close on or about July 26, 2007.

In connection with this offering Westport has agreed, subject to required approvals, to pay 50% of the interest that would have otherwise been payable on the converted debentures, on December 31, 2007 and June 30, 2008. These payments, totalling approximately $884,000, may be made in cash or shares, at Westport's option. These payments represent a significant reduction in the interest that would otherwise have been payable by Westport.

Westport understands that Perseus will continue to hold 4.1 million warrants and approximately 617,000 shares of Westport after completion of the offering.

This press release is not an offering of securities for sale in the United States. The common shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

About Westport Innovations Inc.

Westport Innovations Inc. is a leading global supplier of proprietary solutions that allow engines to operate on clean-burning fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen and biofuels such as landfill gas. Cummins Westport Inc., Westport's joint venture with Cummins Inc., manufactures and sells the world's broadest 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 LNG fuel tanks for vehicles. www.westport.com

All references to $ in this release shall mean Canadian Dollars, unless specifically provided otherwise.

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