The other end of the pipe is open, it has to suck air from somewhere - its just heated as it passes through.
The basic stock setup I've seen (probably applies more to full sized Holdens) just has a kind of extra little cover over the exhaust manifold which traps some heat. None of them have anything at the other end (they certainly don't go into the exhaust or anything), its only sucking fresh air which is heated along the way - its the heat transfer which is the important part.
edit: that one above actually appears to have the open end attached to the air cleaner, I guess that would avoid it getting blocked up, big ugly loop though
Edited by 76lxhatch, 22 December 2011 - 11:18 AM.