Westport Innovations Inc.
TSX : WPT

Westport Innovations Inc.

August 31, 2005 17:00 ET

Westport Innovations Inc. to Form Joint Venture with Beijing Tianhai Industry Co. Ltd.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 31, 2005) - Westport Innovations Inc. (TSX:WPT) today announced that it has signed a Letter of Intent to form a joint venture company with Beijing Tianhai Industry Co. Ltd. (BTIC) of China to market and sell natural gas fuel tanks for the transportation market.

The 50:50 joint venture company, to be located in Beijing, will market and sell on-board liquefied natural gas (LNG) tanks for transportation applications. The fuel storage tanks will be produced in BTIC's new Beijing cryogenic facility, currently under construction. The joint venture will leverage both parents' resources for sales, engineering, and operational personnel.

Mr. Wang Pingsheng, BTIC's Chairman, explained, "Customers are increasingly asking for complete solutions integrated with their existing vehicles. Combining BTIC's world leading manufacturing quality and capability with Westport's automotive LNG expertise will ideally position the new joint venture company to satisfy customer demands in this growing market."

Availability of joint venture LNG tanks in 2006 is expected to help grow the natural gas vehicle market both in the US and China, as improved performance, reliability, and cost will increase the competitiveness of natural gas vehicles. The joint venture company's products will address the needs of all natural gas vehicles, regardless of engine manufacturer.

Global LNG growth is being driven largely by energy security and environmental concerns. Strong political support from both Chinese and American governments, including introduction of the recent US Energy Policy Act, and planned construction of LNG import terminals in both these countries are expected to increase natural gas engine sales and the demand for LNG tanks.

"This new joint venture will be an important addition to Westport's business," said Michael Gallagher, Westport's President and COO. "Westport will see the commercialization of over four years of cryogenic technology development. The joint venture will potentially deliver near term revenues and profits, as well as benefit Cummins Westport and Westport's internal development programs, through the resulting improvement in LNG vehicle economics."

About Beijing Tianhai Industry Co. Ltd. (BTIC)

BTIC is a Sino-Korean cooperative company that has expertise in the design and manufacture of gas cylinders serving a wide range of applications, including automotive and industrial. BTIC manufacturing facilities and quality control processes are certified as per ISO9001:2000, QS9000 and VDA6.1 by TUV, a well known worldwide inspection institute. BTIC manufactured 1.2 million cylinders in their Beijing and Tianjin facilities in 2004, and sold products into over 30 countries including the US and Canada.

About Westport Innovations Inc.

Westport Innovations Inc. is a leading developer of environmental technologies that allow vehicles 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, 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.

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.

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