A four-cylinder, intake boosted, port fuel injection (PFI), spark-ignition (SI) engine is modified to a three-cylinder engine with the outer two cylinders working in the conventional four stroke cycle and with the inner cylinder working only with the expansion and exhausting strokes. After calibration and validation of the engine cycle simulation models using the experimental data in the original engine, the performance of the three-cylinder engine with the ultra-expansion cycle is numerically studied. Compared to the original engine, the fuel consumptions under the most-frequently operated conditions are improved by 9-26% and the low fuel consumption area on the operating map are drastically enlarged for the ultra-expansion cycle engine with the proper design. Nonetheless, a higher intake boosting is needed for the ultra-expansion cycle engine to circumvent the significant drop in the wide-open-throttle (WOT) performance, and compression ratio of the combustion cylinder must be reduced to avoid knocking combustion. Despite of the reduced compression ratio, however, the total expansion ratio is increased to 13.8 with the extra expansion of the working gas in the inner cylinder. Compared to the conventional engine, the theoretical thermal efficiency is therefore increased by up to above 4.0% with the ultra-expansion cycle over the most load range. The energy balance analysis shows that the increased combustion efficiency, reduced exhaust energy and the extra expansion work in the inner cylinder are the primary contributions to improving the fuel conversion efficiency at the middle and high loads. At the low load, reductions in the pumping loss and exhaust energy are the main causes of the reduced fuel consumption, while the contribution of the extra expansion work in the inner cylinder becomes small. (C) 2015 Elsevier Ltd. All rights reserved.