Westport Signs MOU with Guangxi Yuchai Machinery Co. Ltd.

    News Editors

    VANCOUVER, British Columbia--(BUSINESS WIRE)--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.



    Westport Innovations Inc. (TSX:WPT)

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CONTACT: Westport Innovations Inc. Alexis Zehr Investor Relations (604) 718-2046 Email: invest@westport.com Website: www.westport.com

KEYWORD: NEW YORK CHINA INTERNATIONAL CANADA ASIA PACIFIC INDUSTRY KEYWORD: AUTOMOTIVE TRANSPORTATION MARKETING AGREEMENTS SOURCE: Westport Innovations Inc.

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