Cummins, Westport extend JV agreement, create tech partnership

Westport Innovations Inc. and Cummins Inc. of Columbus, Indiana, announced today the extension of their joint venture agreement to develop markets for alternative fuel engines. In addition, the two companies have signed a Technology Partnership Agreement that creates a flexible arrangement for future technology development between Cummins and Westport.Tim Solso, Cummins Chairman and Chief Executive Officer, said, "We are pleased to continue our partnership with Westport. Over the past three years, Cummins Westport has built a business that we believe can build on the strong customer relationships it has developed as well as achieve a sustainable bottom line. We wish the CWI team great success in this exciting venture and we look forward to this new partnership with Westport to build this business."Cummins Westport Inc. (CWI) was originally formed as a joint venture company in March 2001 to explore a range of product and technology opportunities using natural gas as fuel. Westport provided personnel, financing and key technologies for the venture, while Cummins provided an existing product line, manufacturing, product distribution and customer service functions, as well as key management and engineering personnel.CWI will continue as a 50:50 joint venture. Cummins has agreed to convert its preferred share interest in CWI, and as of January 1, 2004, both Westport and Cummins will hold equal numbers of common shares in CWI.CWI's achievements include the development and release of the industry- leading "Plus" line of mid-range natural gas and propane engines, significant technical achievements in the development of low-emissions engines that maintain high performance and fuel efficiency, successful technology demonstrations in both trucking and power generation and increased product sales in markets around the world, including China.CWI's engines have proven successful in varied customer markets and are in service in 18 countries worldwide. In North America, CWI is now the leader in natural gas transit buses. Transit agencies in large cities such as Los Angeles, Tacoma, Boston, San Diego and Washington have selected CWI engines.In China, cities such as Beijing and Xian have purchased multiple orders, in addition to six other cities that have received their first shipments in the past year. These eight Chinese cities have a combined transit fleet of nearly 50,000 buses.