~ Acquisition Marks Continued Expansion into Growing Automotive Segment
for Global Leader in Natural Gas Engines ~

VANCOUVER, Oct. 12, 2011 /PRNewswire/ – Westport Innovations Inc. (TSX:WPT /
NASDAQ:WPRT), the global leader in natural gas engines, today announced
that it has acquired Alternative Fuel Vehicle Sweden AB (AFV) of
Gothenburg, Sweden for approximately SEK 51 million (approximately
US$7.6 million). AFV is the sole supplier of natural gas fuel systems
to Volvo Car Company (VCC).

“Natural gas technology is playing an increasingly important role in
European automotive markets, where there is a longstanding interest in
cleaner, more economical transportation solutions,” said Ian Scott,
President of Westport Light Duty (LD). “We have seen steadily growing
demand in Sweden, particularly from corporate and fleet customers. As
fuelling infrastructure continues to expand and more automakers offer
natural gas options, we expect to see that trend to continue across
Europe.”

Volvo dealers in Sweden have offered a bi-fuel 231-hp 2.5 litre
turbocharged version of the popular V70 wagon, with the natural gas
fuel system engineered and installed by AFV, since 2009. The Volvo V70
Bi-Fuel has been approved as a company car for Swedish businesses, and
Swedish drivers can fuel up at more than one hundred public natural gas
filling stations. In addition to emissions benefits, corporate and
private customers are eligible for tax incentives that make natural gas
an even more economical alternative. AFV now aims to expand into other
European markets.

According to NGVA Europe, there are currently more than 1.4 million
natural gas vehicles on European roads – most of them cars or other
light duty vehicles – a more than three-fold increase over the past
decade. Europe has more than 4,000 natural gas filling stations and
demand for natural gas vehicles is expected to grow as tough new CO2
emission standards begin to take effect in 2012.

Founded in 2009 by a team of former Volvo employees, AFV builds and
installs the natural gas systems at facilities located inside VCC’s
main production center in Gothenburg. In addition to close ties to
management at both VCC and heavy duty vehicle producer Volvo AB, AFV
has had strong support from one of Sweden’s leading energy suppliers,
Göteborg Energi.

The acquisition creates strong synergies for Westport LD, providing a
highly competitive new OEM for Europe as well as proven OEM-level
validation and integration capabilities and a high performance system.
AFV’s strength in Sweden complements Westport LD’s existing presence in
Europe and Asia.

The purchase price consists of a closing amount of approximately SEK 21
million (approximately US$3.1 million), of which SEK 14.3 million
(approximately US$2.1 million) is payable in cash and SEK 6.7 million
(approximately US$1.0 million) in shares of Westport’s common stock
with the number of shares calculated using a 20 day volume-weighted
average price. Westport also assumes AFV’s existing debt of
approximately SEK 8.2 million (approximately US$1.2 million) and repays
a SEK 2.8 million (approximately US$0.4 million) shareholder loan to
Göteborg Energi. The total purchase price also includes earn-out
payments of SEK 19.0 million (approximately US$2.8 million) payable in
Westport shares and tied to revenue and production milestones to be
achieved no later than December 31, 2014. AFV 2010 revenues were
approximately SEK 42 million (approximately US$6.2 million) and is
expected to add approximately US$1.5 million of revenue to Westport for
the three months ended December 31, 2011.

About Westport Innovations Inc.

Westport Innovations Inc. is a global leader in alternative fuel,
low-emissions technologies that allow engines to operate on
clean-burning fuels such as compressed natural gas (CNG), liquefied
natural gas (LNG), hydrogen, and renewable natural gas (RNG) fuels such
as landfill gas. Our unique technologies reduce nitrogen oxides (NOx),
particulate matter (PM), and greenhouse gas emissions (GHG). The
Company focuses on three distinct categories or target markets –
light-, medium-, and heavy-duty – through Westport business units or
joint ventures. Westport LD is focused on light-duty automotive
systems, components and engines, including 2.4L engines for industrial
applications such as forklifts and oilfield service. Cummins Westport
(CWI), a joint venture with Cummins, sells the world’s broadest range
of low-emissions alternative fuel engines for commercial urban fleets
such as buses, refuse trucks and vocational vehicles. Westport Heavy
Duty (Westport HD) is engaged in the engineering, design and marketing
of natural gas-enabling technology for the heavy-duty diesel engine and
truck market. To learn more about our business, visit our website or
subscribe to our RSS feed at www.westport.com, or follow us on Twitter @WestportWPRT.

Note: 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.

SOURCE Westport Innovations Inc.