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Kenworth to produce Liquefied Natural Gas Vehicles

Westport to supply LNG fuel systems through new assembly centre in British Columbia

published: January 24, 2008

VANCOUVER, BC and KIRKLAND, WA – Kenworth Truck Company will expand its presence in the growing market for environmentally friendly, liquefied natural gas (LNG) vehicles by beginning production of Kenworth T800 LNG trucks at its manufacturing facility in Renton, Washington, in 2009. Under an exclusive agreement with Westport Innovations Inc. (TSX:WPT), Kenworth will use Westport’s LNG fuel system technology adapted for the Cummins ISX 15-liter engine.

“This agreement with Kenworth creates a dramatic increase in LNG truck delivery capacity and further strengthens Westport’s ability to efficiently meet the significant growth in market demand for environmentally clean LNG trucks from the ports and other fleet customers,” said Michael Gallagher, president and chief operating officer of Westport.

“The Kenworth T800, equipped with a Cummins ISX and Westport’s HPDI fuel system, offers an industry-leading solution with world-class low emissions and greenhouse gases, while delivering outstanding horsepower, torque, and efficiency comparable to a diesel engine,” said Bob Christensen, Kenworth general manager and PACCAR vice president. “Kenworth is recognized as a technology leader in the commercial vehicle market and the exclusive ability to offer this technology reinforces Kenworth’s reputation as The World’s Best.”

Westport will open a new LNG Fuel System Assembly Center in British Columbia to support the Kenworth factory initiative and to rapidly increase production capacities of LNG fuel systems to meet growing market demand. The Westport Assembly Center will facilitate significant capability for fuel system assembly and engine conversions for delivery direct to the Kenworth plant.

The Kenworth LNG factory installation coincides with the Ports of Los Angeles and Long Beach announcement to approve a new $1.6 billion Clean Truck Superfund. The fund will assist replacing many of the 16,800 Class 8 trucks serving the ports with LNG-powered vehicles. The ports have also introduced a new progressive ban that will remove all pre-2007 trucks by 2012. Westport’s LNG fuel system is the only alternative fuel technology currently qualified for financial support under the ports’ Clean Truck program.

Kenworth and Westport Innovations have previously collaborated on an aftermarket basis to equip Kenworth T800s with LNG fuel systems. These trucks are already serving the Ports of Los Angeles and Long Beach. In addition, Pacific Gas & Electric Company in San Francisco recently became the first utility in the nation to operate Kenworth T800 LNG-powered trucks.

About Westport’s LNG System for Heavy Duty Trucks

Westport’s LNG system for heavy duty Class 8 trucks offers class-leading emissions, including lower greenhouse gas emissions than comparable diesel engines, and allows trucking fleets to move to lower-cost, domestically available natural gas and/or biogas. The Westport LNG system comprises LNG fuel tanks, proprietary Westport fuel injectors, cryogenic fuel pumps and associated electronic components to facilitate robust performance and reliable operation. The Westport LNG system is 2007 EPA and CARB certified to 0.8g/bhp-hr NOx and 0.01g/bhp-hr PM. Kenworth, Southern California dealer Inland Kenworth, Westport and Clean Energy Fuels received the prestigious Alternative Fuel Vehicle Institute’s 2007 Industry Innovation Award for this truck product.

About the Kenworth T800 LNG Truck Specification

The Kenworth T800 is one of the most versatile trucks on the market today. The T800 serves a variety of applications from linehaul tractors with the luxurious 86” Studio AeroCab® sleeper to severe service off-highway dump trucks and urban pickup and delivery vehicles. This operational versatility, coupled with its legendary reliability and high resale value, gives the T800 unmatched levels of customer satisfaction. The Westport engine is fuelled with LNG - a safe, cost effective, low carbon, and low emissions fuel. The Westport LNG system is available with 400 and 450 horsepower ratings and up to 1,750 lb-ft torque for heavy duty port, freight and vocational applications. LNG fuel tanks can be configured to suit customer range requirements. Trucks are eligible for federal tax credits in the United States and may be eligible for other state-specific emissions credits.

About Kenworth Truck Company

Kenworth Truck Company is the manufacturer of The World’s Best® heavy and medium duty trucks. Kenworth is an industry leader in providing fuel-saving technology solutions that help increase fuel efficiency and reduce emissions. The company’s dedication to the green fleet includes aerodynamic trucks, liquefied and compressed natural gas trucks, and medium duty diesel-electric hybrids. Kenworth is the recipient of the 2009 J.D. Power and Associates awards for Highest in Customer Satisfaction for both Over the Road Segment and Pickup and Delivery Segment Class 8 Trucks, and for Heavy Duty Dealer Service. Kenworth’s Internet home page is at www.kenworth.com. Kenworth. A PACCAR Company.

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.

More Information

Westport Fuel Systems
(Investor Inquiries)

Caroline Sawamoto

Senior Manager, Investor Relations & Communications

T 604-718-2046

invest@wfsinc.com

www.wfsinc.com

Kenworth Truck Company

Jeff Parietti

T 425-828-5196

jparietti@paccar.com

www.kenworth.com