Cummins Westport Receives Additional Engine Orders From China.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 4, 2004

Cummins Westport Inc. (CWI) today announced two engine orders from two different cities in China. The transit fleets in these cities have ordered a total of 40 CWI 195- and 230-horsepower, B series low-emissions natural gas engines for delivery by this summer.

One sale is a repeat order while the other is to a new customer in a large city in western China. The two transit agencies operate a total of more than 6,000 buses, about 40% of which are natural gas-powered. These sales validate the performance and value of CWI products to existing customers while demonstrating that new markets in China are rapidly opening up to Cummins Westport technology.

"We are very pleased to see these orders from existing and new customers in China," said Hugh Foden, President of Cummins Westport Inc. "In the last 18 months, we have added seven new cities to our customer list after our initial sales to Beijing. With more than 160 cities that have populations in excess of 1 million people and serious air quality issues, this region is providing CWI with opportunity for rapid expansion and significant growth."

CWI is evaluating options to produce its natural gas engines at plants in China. Locally produced engines could potentially be available in the Chinese market in 2005. Locally built engines will provide an increased competitive advantage for CWI.

Explosive growth in the Chinese economy has translated into mass migrations of rural inhabitants into urban centers, putting heavy pressure on city transit operators. To accommodate this growth the new bus market in China has doubled over the past four years and is forecasted to grow another 33% over the next four. While bus builds in North America have been relatively flat since 1997 and will remain at about 5,000 new buses per year, China built more than 60,000 new units in 2003 alone.

Assisting China's drive to alternative fuel use is its vast reserves of natural gas with pipeline infrastructure under continual development. The government is committed to improving environmental standards and to rapidly increasing its use of natural gas as an energy alternative. In China, the cost of natural gas is 35% less than the energy equivalent of diesel.

Cummins Westport Inc., a joint venture of Cummins Inc. (NYSE:CMI) and Westport Innovations Inc. (TSX:WPT), develops and markets low-emissions, alternative fuel engines manufactured by Cummins. Cummins is a global power leader in engines, electrical power generation systems and related technologies. Westport Innovations is the leading developer of clean natural gas- and hydrogen-fueled engines.

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.