Canada, Vancouver

Less than a week after announcing alternative fuel engine development agreements with an unnamed European heavy vehicle OEM, Westport Innovations has announced a joint venture agreement with Weichai Power Co.,Ltd , China's largest heavy duty engine manufacturer, and Hong Kong Peterson (CNG) Equipment Limited. In a separate development Westport has also issued notice that they have filed documentation with the U.S. Securities and Exchange Commission concurrently with a short-form prospectus in Canada in connection with a planned initial public offering of common shares in the United States via the Nasdaq.

The new JV entity, Weichai Westport Inc. (WWI), will research, develop, design, manufacture, market, distribute and sell advanced, alternative fuel engines (and relevant parts and kits) for use in automobiles, heavy duty trucks, power generation and shipping applications.

"We are working with the largest heavy duty engine manufacturer in China where over 450,000 Heavy Duty trucks are introduced onto Chinese highways every year," said David Demers, CEO at Westport Innovations. "Our High Pressure Direct Injection (HPDI) liquefied natural gas (LNG) fuel system technology provides a clean, low-emission solution to address a burgeoning market opportunity and the pressing need in China and Asia to reduce high emissions in major cities. With over 11% of the global heavy duty engine market share, Weichai is not only a strong partner for the Chinese market, but a greater partner in global expansion of low-emission, alternative fuel engines."

The rapid growth in demand in China for energy, especially in the transport sector, is creating a strong demand for newer, cleaner fuels in China such as natural gas. China has a growing reserve of natural gas and is in various stages of reviewing and approving a number of new LNG import terminals to be constructed along its eastern shore. Altering natural gas use from power generation to transportation frees up increasingly expensive oil based fuels for other applications and provides an economic advantage to the vehicle owner where natural gas is less expensive than diesel on a per unit of energy basis.

According to The National Clean Vehicle Productivity Promotion in China, there are over 185,000 Natural Gas Vehicles (NGV) in China and the fueling infrastructure required to fuel these vehicles is growing quickly.

Adding to the scope of the joint venture, WWI will provide ancillary services including inventory, warehousing, training, applications engineering, sales promotion, technology consulting, installment, maintenance and after sale service.

Under the terms of the 30-year joint venture agreement, Westport's initial investment is expected to be approximately US$4.5 million (30 million RMB) equaling a 35 per cent share. Weichai Power and Hong Kong Peterson will hold 40 per cent and 25 per cent shares respectively. Westport Innovations and Weichai Power will appoint two members each to the board of directors and Hong Kong Peterson will appoint one. The Chairman of the board will rotate between Weichai Power and Westport after each three-year term, with Weichai power appointing the first board chair.

Westport IPO Listing

In relation to the proposed listing on the NASDAQ of Westport Innovations, common shares in the business are being concurrently offered in Canada under a short-form prospectus. Copies of the registration statement can be accessed through the SEC's website at www.sec.gov, and copies of the Canadian short-form prospectus are available at www.sedar.com.

Westport is already listed on the Toronto Stock Exchange (TSX) and has just completed a consolidation of issued and outstanding common shares. Westport common shares are expected to trade on the TSX on a post-consolidated basis beginning at the open of market on July 24, 2008. Listing of the common shares on NASDAQ will be subject to Westport fulfilling all applicable listing requirements.

The offering will be made only by means of a prospectus. Details of prospectus availability can be found on the Westport website.