Information:


FOR IMMEDIATE RELEASE
Tuesday, May 26, 1998

WESTPORT INNOVATIONS INC. AND THE U.S. DEPARTMENT OF ENERGY'S IDAHO NATIONAL ENGINEERING AND ENVIRONMENTAL LAB ANNOUNCE STRATEGIC ALLIANCE

Vancouver, Canada: Westport Innovations Inc. and the U.S. Department of Energy's Idaho National Engineering and Environmental Laboratory (INEEL) today announced the formation of an alliance to develop a new generation of liquefied natural gas (LNG) fuel systems for heavy duty vehicles.

The goal of the alliance is to promote the development and commercialization of low emission, high efficiency engines and fuel systems for use in trucks, buses and other heavy-duty vehicles. This technology has the potential to reduce operating costs and improve the environmental profile of heavy duty-diesel engines, while expanding the market for a clean, secure energy source. The collaboration is the first between Westport and the U.S. Department of Energy, which is committed to supporting energy technologies which are consistent with national priorities. Lockheed Martin Idaho Technologies Company operates INEEL near Idaho Falls for the Department of Energy.

Under the first phase of the program, scheduled to begin this summer, INEEL will conduct extensive component durability tests of Westport's 6V-92 High Pressure Direct (HPD) injection retrofit system for transit buses. The test will include an extensive 1,000 hour durability test of the system.

The second phase of the program, proposed to begin late this year or in early 1999, provides for the conversion of three INEEL buses to operate on Westport's LNG fuel system, and subsequent field testing of the vehicles.

The alliance will draw upon the expertise and testing facilities of INEEL, one of the largest fleet operations in the U.S. Department of Energy's network of laboratories, and Westport's patented gaseous fuel injection and cryogenic fuel delivery technologies. The initial focus will be on deployment of HPD injection engines and LNG fuel systems.

David Demers, Westport's President and CEO, commented," Having recently completed a series of successful independent emission tests of our HPD Injection system, we welcome this opportunity to work with INEEL on durability testing and further developments to achieve cost reductions and improved design. We value INEEL's recognition of Westport's fuel injection and delivery systems as promising technologies, and the added resources applied to testing and development will contribute significantly to their commercialization."

Westport is commercializing patented combustion technology called High Pressure Direct (HPD) Injection. HPD Injection allows heavy-duty diesel engines to operate on cleaner-burning gaseous fuels, such as natural gas, without sacrificing performance or fuel economy. HPD Injection will enable diesel engines to meet the challenging nitrogen oxide (NOx) and particulate matter (PM) emissions targets set in the U.S. and Europe, as well as reduce carbon dioxide (CO2) emissions to meet proposed global warming initiatives. The company has developed a retrofit system for the Detroit Diesel 6V 92 transit bus engine which will be tested by customers on the road over the next two years. The company's original equipment manufacturers program is focused on developing technology and marketing alliances with diesel engine manufacturers around the world. For more details on the program, visit the company's web site at www.westport.com.

INEEL's natural gas vehicle program began in 1995 as part of a Cooperative Research and Development Agreement between INEEL, Detroit Diesel and CVI Inc. Four buses from INEEL's natural gas-powered fleet were used for transportation during the 1996 Summer Olympics in Atlanta. Two buses also were used in the Summit of the Eight in Denver last summer at the request of summit organizers and were also sent to Yellowstone National Park in 1997 and 1998 in support of the "Greening of Yellowstone" 125th anniversary symposium. For more information on INEEL technologies, visit the company's website at www.inel.gov.

For further information:
Sarah Greenwood, Corporate Communications, Westport direct (604) 718-2016, info@westport.com
Teri Ehresman, Public Relations, INEEL, direct (208) 526-7785 ehr@inel.gov.


Lockheed Martin Idaho Technologies Company
P.O. Box 1625 Idaho Falls, ID 83415-3695 208-526-1693 Fax 208-526-5034