Westport Receives Purchase Order from BMW Group on Hydrogen Engine Development Program.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 22, 2004

Westport Innovations Inc. (TSX:WPT) announced today that it has received a purchase order from BMW AG of Munich, Germany to support BMW Group Research and Technology on hydrogen internal combustion engine development. The commitment is expected to cover work through September 2005.

Westport will provide fuel injection hardware and engineering support, including sets of Westport's prototype hydrogen fuel injectors for testing at BMW Group facilities. Westport retains the intellectual property and ownership rights for the injectors. The advanced hydrogen injector design incorporates Westport's patented and proprietary high pressure direct injection technology.

"Our new agreement with BMW Group is another demonstration of Westport's gaseous-fueled engine technology leadership," said Michael Gallagher, Westport's Chief Operating Officer. "We are proud to be selected by BMW, one of the world's leaders in high-performance engine design and development. Although hydrogen as a fuel for mass-produced vehicles remains some time away, it's clear that the combination of low-cost internal combustion engines with the environmental benefits of hydrogen could be an important step towards sustainable mobility."

BMW Group is one of the leading automotive partners in the European Integrated Hydrogen Project Phase II (EIHP2) and has been conducting trials with hydrogen-powered vehicles for decades. More information about BMW Group's hydrogen program is available on the Internet at www.bmwgroup.com/cleanenergy.

Westport Innovations Inc. is the leading developer of gaseous fuel engine technologies. It develops, manufactures and sells a wide range of engines for commercial transportation applications such as trucks and buses through Cummins Westport Inc., its joint venture with Cummins Inc. Technology development alliances are in place with a number of other leading engine manufacturers, including Ford, MAN, Isuzu, and BMW to develop engines that operate using cleaner-burning fuels such as natural gas, propane, hydrogen, and blended fuels such as HCNG.

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.