March 10, 2004

News Release: Cummins Westport and Cummins India Sign Memorandum of Understanding on Manufacturing in India

Cummins Westport Inc. (CWI) and Cummins India Ltd. (CIL) today announced in Pune, India that they have signed a Memorandum of Understanding (MOU) whereby both parties intend to shortly sign a comprehensive license and supply agreement enabling CIL to manufacture the CWI natural gas B-series engines in India.

The specific terms of the MOU were not disclosed. However, CWI will license its lean burn spark ignition (LBSI) technology and supply gas-specific components for the B Gas International (BGI) engine to be manufactured by CIL at its manufacturing facilities located at Daman, in Western India. The project is expected to go live in early 2005, and will enable CWI to participate in a growing market for natural gas vehicles in India. Through the project, Cummins India will be extending its product line of stoichiometric gas engines to cater to the growing horsepower and performance requirements of the transit bus market in India. CIL currently is the leading provider of natural gas engines for bus applications in India and has an installed base of approximately 4,000 buses. 'We are very excited about this partnership and the potential that the Indian natural gas transit market offers,'said Hugh Foden, President of Cummins Westport Inc. 'India fits all the key criteria we use to assess potential markets, namely, it has an increasing availability of competitively priced natural gas, a developing infrastructure for natural gas, indigenous bus OEMs, cities with serious air quality issues and a strong Cummins manufacturing and distribution presence.'

Anant Talaulicar, Joint Managing Director of Cummins India Ltd., said, 'As you know Cummins is committed to a cleaner, safer and healthier environment. We have made significant investments in clean diesel and natural gas technologies for automotive power generation applications. CIL has been a leader in the environmentally friendly natural gas vehicles market in India. Today more than 4,000 Cummins natural gas engines operate in India. As gas supply in India increases, we foresee customers moving towards more cost-effective product solutions. Through this agreement, CIL will be uniquely placed to provide customers 150-230 hp products with best in class power-to-weight ratios and improved fuel efficiency. Importantly, operators will be able to leverage this for lower life cycle costs and increased passenger loads while providing OEMs an improved product offering backed by the Cummins service network. The agreement also creates long term export opportunities for us, helping our continued focus in that direction.'

In March 2002, the Supreme Court of India mandated that all buses in the capital of Delhi be converted to run on cleaner-burning compressed natural gas (CNG). As a result, Delhi, the third-largest city in India, currently has the largest natural gas bus fleet in the world, with approximately 7,500 CNG transit and school buses on the road. CIL currently supplies stoichiometric natural gas engines into Delhi but has decided to adopt CWI's lean-burn technology in the future.

In October 2003, the government of India also introduced a programme requiring strict Euro IV vehicular emission norms in 11 target cities (including Delhi) by 2010, with the remainder of the country having to meet Euro III requirements by the same year. The 11 cities comprise the majority of India's bus market, which averages approximately 25,000 new buses (over 8 tonnes GVW) per year. The government of India is particularly interested in promoting natural gas as a key part of this program.

Cummins India Ltd. is a 51% subsidiary of Cummins Inc. and is engaged in manufacture &marketing of engines, generator sets and allied products for powergen, automotive and industrial markets.

Cummins Westport Inc., a joint venture of Cummins Inc. (NYSE:CMI) and Westport Innovations Inc. (TSX:WPT), develops and markets low-emissions, alternative fuel engines manufactured by Cummins. Cummins Inc. is a global power leader in engines, electrical power generation systems and related technologies. Westport Innovations Inc. is the leading developer of clean natural gas- and hydrogen-fueled engines.

Note: This document contains forward-looking statements about Cummins Westport's business, operations, technology development or to the environment in which it operates, which are based on Cummins Westport's estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond Cummins Westport's control. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Cummins Westport disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: Cummins Westport Inc.

Cummins Westport Inc. &Westport Innovations Inc.Gordon Neal, This email address is being protected from spambots. You need JavaScript enabled to view it. Inc.Mark Land, This email address is being protected from spambots. You need JavaScript enabled to view it. India Ltd.Rekha Rangaswamy, +91 20 2538 This email address is being protected from spambots. You need JavaScript enabled to view it.

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