Vancouver, BC, June 14, 2006--Westport Innovations Inc. (TSX:WPT.TO), a global leader in gaseous-fuelled power technologies, today announced that it has entered into an agreement with Matco Capital Ltd. ("Matco") to reorganize Westport Research Inc. ("WRI"), a wholly-owned subsidiary of Westport, as part of Westport's shareholder value program.
Westport will transfer all of the current assets, liabilities and operations of WRI to other wholly-owned Westport subsidiaries. Matco will then purchase a 45% equity interest in WRI, following which Westport and Matco will source and pursue other opportunities to maximize the value of their respective interests in WRI. The reorganization and share sale is expected to close on or before July 31st, 2006. Westport expects to access not less than $10 million in cash on closing with the ultimate amount to be determined by the value of the reorganized WRI, including any new ventures.
There will be no changes to the share ownership of Westport, its listing on the Toronto Stock Exchange, Cummins Westport Inc., the composition of the Board of Directors, management or in any of its relationships and commitments to shareholders, employees, government and industry partners, customers, and suppliers. Westport will also retain all rights to its intellectual property and will continue to develop and commercialize HPDI technology under its current business plans.
"We believe this transaction clearly unlocks value for our shareholders," stated David Demers, CEO of Westport. "We will immediately access $10 million of non-dilutive capital for our business expansion plans, with additional upside possible. We look forward to working with Matco to fully develop this opportunity."
Results Conference Call
Westport has scheduled a conference call for tomorrow, Wednesday, June 14, 2006 at 8:00AM Pacific Time (11:00AM Eastern Time) to discuss this transaction and fourth quarter financial results. The public is invited to listen to the conference call in real time or by replay. To access the conference call by telephone, please dial: 1-888-694-4728 (North America Toll-Free) or 1-973-582-2745 (Toll-International). Alternatively, the webcast of the conference call can be accessed through the Westport website at www.westport.com by selecting "Investors" and then "Investor Overview" from the menu. Replays will be available in streaming audio on the same website shortly after the conclusion of the conference call.
About Westport Innovations Inc.
Westport Innovations Inc. is the leading developer of environmental technologies that allow engines to operate on clean-burning fuels such as natural gas, hydrogen, and hydrogen-enriched natural gas (HCNG). Westport has technology development alliances in place with Cummins, Ford, BMW, and Isuzu, as well as an ownership interest in Clean Energy, the largest provider of natural gas for vehicles in North America. Cummins Westport Inc., Westport's joint venture with Cummins Inc., manufactures and sells the world's widest range of low-emissions alternative fuel engines for commercial transportation applications such as trucks and buses.
Note: This document contains forward-looking statements about Westport's business, operations, future financing plans, technology development and the environment in which Westport operates, which are based on 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 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. 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.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
Westport Innovations Inc.
Jonathan Burke
Investor Relations
(604) 718-2046
invest@westport.com
http://www.westport.com