Westport Innovations Inc.

Westport Innovations Inc.

June 12, 2008 16:18 ET

Westport Innovations Announces Debt Financing Agreement For $15 Million

Financing Supports Growth Opportunities

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2008) -


Westport Innovations Inc. (TSX:WPT), a global leader in alternative fuel, low-emissions transportation technologies, has signed a financing agreement with a Canadian based independent equity investment firm to help fund Westport's corporate development activities and other growth opportunities currently being pursued by Westport. Under the terms of the agreement, the investment firm has agreed to purchase $15,000,000 of debenture units on a "bought-deal", underwritten basis. Each debenture unit consists of $1,000 principal amount, 9% unsecured subordinated debentures with a three year maturity and 180 common share purchase warrants. Each warrant will entitle the holder to purchase one common share of Westport at an exercise price of $5.35 for a period of two years from the closing date of the offering. The offering will be made by way of short form prospectus and is scheduled to close on or about June 27, 2008.

"The financing provides a straight forward solution to help us meet the growing demand for product and potential new commitments in the near term," stated David Demers, CEO of Westport. "Westport's product market is growing on a global scale and at an unprecedented pace. With the anticipated opportunities on the horizon we can see with our partners, we felt that it was imperative to secure capital at this time to ensure that those opportunities come to fruition."

The securities forming the debenture units will not be registered under the U.S. Securities Act of 1933 (the Securities Act) and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

The debenture will mature three years from the Closing Date and bear interest of 9% per annum, compounded annually, payable in cash semi-annually in arrears on December 15th and June 15th of each year during the term, commencing on December 15, 2008. Westport shall pay to the investment firm a cash commission equal to 4.95% of the gross proceeds of the offering. In addition, Westport will grant the investment firm 161,413 common share purchase broker warrants. Each broker warrant shall entitle the holder to purchase one common share at an exercise price of $4.60, for a period of 2 years following the closing date of the offering.

This transaction is subject to certain conditions including customary regulatory approvals and specifically, the approval of the Toronto Stock Exchange.

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.

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 received and does not accept responsibility for the adequacy or accuracy of this news release.

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