3/17/00 - Purchases Full Title to Technology From UBC
WESTPORT INNOVATIONS INC ("WPT-T;WPIVF-L") - Purchases Full Title to Technology From UBC
Westport Innovations Inc. announced that it has purchased full title to a patented technology previously licensed by Westport from the University of British Columbia.
Under the terms of the agreement, Westport purchased from UBC all rights to the original patents on which Westport has developed its high pressure direct injection (HPDI) technology. In exchange for the technology, Westport has granted to UBC a five-year right to receive common shares of Westport with a value of up to $1.5 million.
UBC can exercise its right after Westport has announced a commercialization agreement involving HPDI. The number of common shares issued to UBC will be based on the average of the closing prices for Westport of the shares on The Toronto Stock Exchange for the 20 days prior to the exercise of UBC's right.
The technology purchased by Westport was originally invented at UBC by a team led by Dr. Philip Hill, now Westport's Senior Scientific Advisor. The purchase of full title by Westport supercedes a 1994 exclusive license agreement under which Westport committed to pay royalties to UBC on certain gross revenues from products that use the technology.
"Westport is pleased with the technology purchase," said David Demers, Westport's President and Chief Executive Officer. "With this transaction we maintain our close relationship with UBC. In addition the transaction makes it easier for Westport to plan for the commercialization of the company's low-emissions fuel systems."
Westport HPDI technology uses clean-burning natural gas as the primary fuel for diesel engines. The natural gas is ignited by a separate, prior injection of a small amount of diesel fuel. The technology is intended to retain all of the performance and fuel economy of diesel engines while meeting future U.S. Environmental Protection Agency emissions targets for oxides of nitrogen (NOx) and particulate matter (PM). Westport's fuel systems are also intended to significantly reduce carbon dioxide (CO2) emissions to meet proposed global warming initiatives.
Westport's strategy is to develop natural gas technology for diesel engines through key strategic alliances. Westport Innovations is working with Cummins Engine Company, Inc. of Columbus, Indiana to develop natural gas- fuelled diesel engines for heavy-duty trucking and electric power generation. Separately, with Ford Motor Company of Dearborn, Michigan, Westport Innovations is developing the enabling technologies for a natural gas fuelled diesel engine for light-duty vehicles.
Note: This news release contains forward-looking statements about Westport's plans for its technology based on the current expectations of management. Westport cautions investors that due to risks and uncertainties, actual events may differ materially from current expectations. TEL: (604) 718-2016 Alan Bayless, Manager, Investor Relations FAX: (604) 718-2001 e-mail abayless@westport.com
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