Warrant Exercise Generates $8.4 million in Cash for Westport

Published: April 14, 2010

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VANCOUVER,BC– Westport Innovations Inc. (TSX:WPT/ NASDAQ:WPRT), a global leader in alternative fuel, low-emissions transportation technologies, today announced that 790,614 warrants previously issued to Industry Canada, a department of the Government of Canada, have been exercised at a price of $10.65 per warrant generating $8.4 million in cash for the company. Each warrant entitled the holder to one common share ofWestport.  As a result of the exercise of warrants, the total outstanding number ofWestportcommon shares has increased to 39,325,853 from 38,535,239.

The warrants were issued to IndustryCanadaunder its former Technology Partnerships Canada (TPC) Program. Under the TPC program,Westportreceived $18.9 million to support the development of high-performance low-emissions engines for vehicles. Much of that development is now being commercialized through the Westport HD system. TPC funding supported approximately 80 jobs during the work phase of the project, which was successfully concluded on March 31, 2008. Under the terms of the TPC agreement,Westportis also obligated to pay the greater of $1.35 million or 0.33% of annual gross revenues until March 31, 2018.Westportmade its first annual payment of $1.35 million in 2009.

“We are pleased to be part of a successful partnership with TPC that has providedCanadawith a leadership position in gaseous fuels engine development at a time when demand for such products is increasing,” saidDavid Demers, CEO of Westport Innovations. “Government funding plays a key role in developing new technologies such as our Westport HD system, helping create highly technical jobs and leverage public and private investment in research and development.  We have appreciated TPC’s support over the years, and we are glad to see them financially rewarded for their investment in Westport.” 

About Westport

Westport, a division of Westport Fuel Systems Inc., engineers the world’s most advanced natural gas engines and vehicles. We work with original equipment manufacturers worldwide from design through to production, creating products to meet the growing demand for vehicle technology that will reduce both emissions and fuel costs. To learn more about our business, visit www.westport.com, subscribe to our RSS feed, or follow us on Twitter @WestportDotCom. 

Cautionary Note Regarding Forward Looking Statements

This document contains forward-looking statements, including statements regarding the demand for our products, the future success of our business and technology strategies, investment, cash and capital requirements, intentions of partners and potential customers, the performance and competitiveness of our products and expansion of product coverage, future market opportunities, speed of adoption of natural gas for transportation, growth in demand as a result of new emission standards and terms of future agreements. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward looking statements. These risks and assumptions include risks and assumptions related to our revenue growth, operating results, industry and products, the general economy, conditions of and access to the capital and debt markets, governmental policies and regulation, technology innovations, fluctuations in foreign exchange rates, global government stimulus packages, the acceptance of natural gas vehicles in fleet markets, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the sufficiency of bio methane for use in our vehicles, the development of competing technologies as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward looking statements except as required by National Instrument 51-102.