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Westport and Delphi Sign Joint Development Agreement to Commercialize Natural Gas Injector Technology

March 3, 2014

~ Global Auto Supplier and Westport Combine Strengths for Natural Gas
Heavy-Duty Applications ~

VANCOUVER, March 3, 2014 /PRNewswire/ – Westport Innovations Inc. (TSX:WPT /
NASDAQ:WPRT), engineering the world’s most advanced natural gas engines
and vehicles, today announced a joint development agreement with Delphi
Automotive PLC (NYSE:DLPH) to help entrench Westport High Pressure
Direct Injection (Westport(TM) HPDI) as the leading natural gas technology
platform for heavy-duty engine applications. Through the agreement,
Westport and Delphi will combine their intellectual property and
engineering strengths to co-develop and manufacture high-pressure
natural gas fuel injectors designed for multiple engine original
equipment manufacturers (OEMs). The first in a family of injectors to
be developed will be one of the core components of Westport’s recently
announced HPDI 2.0 fuel system. Delphi is one of few global injector
manufacturers capable of producing fuel system components demanded by
heavy-duty diesel engine OEMs.

Under the Agreement:

        --  Westport is combining over twenty years of natural gas
            high-pressure direct injection research with Delphi's deep,
            comprehensive and innovative powertrain technology portfolio to
            create and manufacture a mass-market-ready natural gas injector
            to power multiple engine platforms.

        --  Westport will be investing in critical equipment including but
            not limited to tooling, manufacturing, assembly, and end of
            line test equipment within Delphi's state of the art, global
            production footprint. The investment was previously identified
            in Westport's prospectus in September 2013 for dedicated
            production equipment of proprietary natural gas engine fuel
            injection equipment and will enable Westport to deliver high
            volumes of injectors for multiple OEM applications ranging from
            trucks to trains.

        --  Delphi will provide injector designers and engineering
            resources to work with Westport's experts to optimize design,
            development, manufacturing, and assembly of the injectors.

        --  Based on current OEM projections, Delphi and Westport are
            intending to invest in and develop annual production capacity
            in excess of 100,000 injectors within the next 4 years.

        --  Intellectual property rights arising from the development
            program will be jointly owned by Delphi and Westport and
            maintained by Westport.

Key injector features include:

        --  Simplified design and smaller footprint: The single actuator
            design allows for simplified adaptability to multiple engine
            OEMs for various applications, resulting in lower development
            and product costs.

        --  Higher performance:Superior actuator performance obtained by
            using Delphi's high-performance twin valve technologyresults in
            increased flow capacity and compatibility with high power and
            high power density applications.

        --  Improved reliability and longer life: The combination of
            optimised design and proven Delphi technology results in
            industry standard reliability and durability.

        --  Lower cost:Cost of the new injector is expected to be
            significantly lower than current HPDI injectors, meeting both
            the commercial and performance demands of diverse markets
            globally from Europe to North America to China.

“Our agreement and investment with Delphi combines intellectual property
with global production capacity at one of the world’s most
sophisticated injector facilities,” said David Demers, CEO of Westport.
“Delphi’s support for natural gas fuel systems and Westport HPDI means
having an integrated and dedicated manufacturing partner to develop and
produce components that will help create a landmark product with
industry defining pricing, quality and performance characteristics for
global engine OEMs.”

“Delphi sees natural gas as an important part of mainstream
transportation and believes that Westport HPDI will be the industry
standard technology for natural gas-powered heavy-duty applications,”
said Jeff Owens, chief technology officer of Delphi. “Working with
Westport to create a highly scalable, quality production partnership
and reduce system pricing for HPDI is a great opportunity to help
change the trucking world.”

About Westport HPDI

Westport(TM) HPDI is the only natural gas technology currently capable of
delivering performance and fuel economy equivalent to that of current
high performance diesel-fueled engines, but with diesel substitution of
over 90%. This combination of high performance and high efficiency is
critical for heavy-duty engines in demanding commercial applications.
Westport is working with seven OEM applications on HPDI in its current
iteration, dubbed “HPDI 2.0,” and Westport anticipates first
availability of customer products in late 2014 and 2015. This new
generation of the class-leading natural gas technology will provide
global vehicle and engine OEMs with a vertically integrated natural gas
solution with reduced costs and improved performance and fuel economy.
Developed to the most rigorous OEM-quality standards, HPDI 2.0 system
components will be manufactured in state-of-the-art, high-quality
facilities, offer ready integration into OEM operations globally, and
provide an attractive way to reach scalable volume deliveries as
natural gas markets mature and grow.

About Westport

Westport engineers the world’s most advanced natural gas engines and
vehicles. More than that, we are fundamentally changing the way the
world travels the roads, rails and seas. We work with original
equipment manufacturers (OEMs) 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 westport.com, subscribe to our RSS feed,
or follow us on Twitter @WestportDotCom.

About Delphi

Delphi Automotive PLC (NYSE: DLPH) is a leading global supplier of
technologies for the automotive and commercial vehicle markets.
Headquartered in Gillingham, England, Delphi operates major technical
centers, manufacturing sites and customer support services in 32
countries, with regional headquarters in Bascharage, Luxembourg; Sao
Paulo, Brazil; Shanghai, China and Troy, Michigan, U.S. Delphi delivers
innovation for the real world with technologies that make cars and
trucks safer as well as more powerful, efficient and connected. Visit www.delphi.com.

Note: This document contains forward-looking statements.
Forward-looking information is typically identified by words such as
“anticipate”, “estimate”, “expect”, “forecast”, “may”, “will”, “could”,
“plan”, “intend”, “should”, “believe”, “outlook”, “project”,
“potential”, “target” and similar words suggesting future events or
future performance. In particular, this press release contains
forward-looking information which includes statements regarding the
launch date, availability and pricing for the Westport HPDI 2.0
systems, production capability, costs of products, demand for our
products, the future success of our business and technology
strategies, intentions of partners and potential customers, the
performance and competitiveness of our products and expansion of
product coverage and future market opportunities. 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, the
availability and price of natural gas, global government stimulus
packages, the acceptance of and shift to natural gas vehicles in fleet
markets, 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
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made. We disclaim any obligation to publicly update or revise such
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incorporated by reference herein.

SOURCE Westport Innovations Inc.


Source: PR Newswire



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