Westport and OMVL Form JV for Sub-5-Liter Class Alternative Fuel Engines

26 October 2007

Westport Innovations Inc. and OMVL SpA have formed an equity joint venture to design, produce and sell alternative fuel engines in the sub-5-liter class for global applications. The new, jointly controlled company will be headquartered in Vancouver, Canada and will exploit the global engineering, production and distribution strengths of OMVL and its parent company, SIT Group, to deliver engines worldwide.

Westport, with expertise in engines and fuel systems which use gaseous fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, and hydrogen-enriched compressed natural gas (HCNG), will support the new venture through supply of technology, design, testing and market development services.

With high oil prices and the growing concern about carbon emissions, we believe the market for engines operating on low carbon fuels such as natural gas, LPG and hydrogen will continue to grow rapidly. Our new partnership with OMVL will create a focused engine specialist to provide market-leading high performance alternative fuel solutions to customers around the world.

—David Demers, Westport CEO

OMVL, based in Pernumia, Italy, designs, manufactures and markets complete fueling systems for new vehicles and for the aftermarket conversion of engines from gasoline to CNG and LPG. OMVL has been part of the SIT Group, an Italian multinational founded in 1953 specializing in safety, monitoring and control systems for domestic gas heating appliances and for alternative fuel vehicles.

OMVL currently collaborates with the global manufacturers of motor vehicles, including Volkswagen, Peugeot, Citroen and Ford, with sales in Europe (33%), the Americas (14%) and Australasia (53%). OMVL and SIT have production and distribution facilities in Europe, North and South America, Australia, and China.

Cummins Westport Inc., Westport’s joint venture with Cummins Inc., manufactures and sells the world’s broadest range of low-emissions alternative fuel engines for commercial transportation applications such as trucks and buses. BTIC Westport Inc., Westport’s joint venture with Beijing Tianhai Industry Co. Ltd., manufactures and sells LNG fuel tanks for vehicles.