Mr. Dan Sceli reports

WESTPORT ANNOUNCES CLOSING OF PREVIOUSLY ANNOUNCED LIGHT-DUTY SEGMENT DIVESTITURE

Westport Fuel Systems Inc. has closed the previously announced transaction to divest its light-duty segment and has outline its strategic vision for future growth, emphasizing expansion of market share, entering new markets and rightsizing its current operations.

Today, Westport closed the sale of the light-duty segment to a wholly owned investment vehicle of Heliaca Investments Cooperatief UA, a Netherlands-based investment firm supported by Ramphastos Investments Management BV, a prominent Dutch venture capital and private equity firm. The transaction, initially announced on March 31, 2025, includes the sale of Westport Fuel Systems Italia Srl, encompassing the light-duty original equipment manufacturer, delayed OEM and independent aftermarket businesses. Total consideration for the assets was a base price of approximately $79.5-million (67.7 million euros), subject to certain adjustments, along with potential earnouts of up to a revised estimate of $3.9-million (3.3 million euros) based on future performance milestones.

"The successful completion of the disposition of our light-duty segment marks a pivotal step in strengthening our balance sheet," said Dan Sceli, chief executive officer of Westport Fuel Systems. "More importantly, it allows Westport to sharpen our focus on the larger, higher-growth opportunities ahead, including providing the most economical solutions for heavier-duty and high-horsepower commercial mobility and industrial applications that also deeply decarbonize these challenging segments -- where we believe our products and technologies can deliver the greatest value."

The new Westport

With the successful completion of the light-duty segment divestiture, Westport is taking the necessary steps to execute on a new and focused integrated business strategy. The company recognizes the evolving macroeconomic environment and is positioning itself to capitalize on renewed market momentum, drive operational excellence and deliver on key financial objectives.

"The transportation landscape is shifting, and customer demand for cleaner, smarter and more sustainable solutions continues to accelerate," added Mr. Sceli. "We're seeing renewed attention on CNG and LNG fuelled platforms, and Westport is uniquely positioned to deliver the necessary products and technologies. By leveraging our core strengths in fuel-agnostic, high-pressure fuel systems, we aim to meet growing market demand and provide our customers with reliable solutions that perform -- and in many cases are more affordable than the incumbant engines."

During the coming second quarter financial results conference call, Westport will be covering additional details about the transaction and Westport's strategy ahead. It will focus on key priorities, including:

• Cespira: strategic market expansion and technology leadership in heavy-duty transportation and off-road high-horsepower mobility;
• High-pressure controls and systems: complementing the energy transition with versatile solutions that support multiple powertrain platforms;
• Westport financial initiatives: balancing opportunity scale, execution performance and dynamic market conditions.

Westport's key focus going forward recognizes both the opportunities and headwinds in overall market conditions. The company has initiated a comprehensive internal process to review additional ways to maximize its economic benefit from this recent transaction for its stakeholders. It looks forward to providing additional insight and updates when it releases second quarter 2025 results on Monday, Aug. 11, 2025, after market close.

About Westport Fuel Systems Inc.

Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a leading supplier of affordable, alternative fuel and low-emission transportation technologies, it designs, manufactures and supplies advanced components and systems that enable the transition from traditional fuels to cleaner energy solutions.

Its proven technologies support a wide range of clean fuels -- including natural gas, renewable natural gas and hydrogen -- empowering OEMs and commercial transportation industries to meet performance demands, regulatory requirements and climate targets in a cost-effective way. With decades of expertise and a commitment to engineering excellence, Westport is helping its partners achieve sustainability goals -- without compromising performance or cost-efficiency -- making clean, scalable transport solutions a reality.

Westport Fuel Systems is headquartered in Vancouver, Canada.

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