Press Release

Ballard Power Systems Announces $850,000 in Fuel Cell Orders

09/27/96

Ballard Power Systems Inc. Secures $1.2 Million Order From Volkswagen
And Volvo

VANCOUVER, British Columbia, Sept. 25 -- Ballard Power
Systems announced today that it had secured contracts totalling $1.2
million (US$850,000) from Volkswagen AG and AB Volvo for the supply of
Ballard Fuel Cells, test equipment and related support services.

The fuel cells will be used by Volkswagen and Volvo in their joint
research and development program to develop fuel cell powered
passenger and commercial vehicles.

"These contracts represent the increasing interest in Ballard Fuel
Cells for transportation applications," said Firoz Rasul, President
and Chief Executive Officer at Ballard. "We welcome Volkswagen and
Volvo, both internationally renown companies, as new customers and
look forward to what we expect will be a long and beneficial
relationship between our companies."

"Fuel Cells offer a highly interesting way to power automobiles in the
future," said Dr. Friedrich Quissek, Research Director of
Volkswagen. "We are very pleased to begin working with Ballard.''

Lars-Goran Rosengren, Research Director of Volvo stated, "Fuel cells
offer the promise of powering clean efficient vehicles which have the
range and passenger capacity of today's internal combustion engine
power models."

Ballard Power Systems is the world leader in the development of proton
exchange membrane fuel cell power systems. At the heart of its
products is the Ballard Fuel Cell, a proprietary zero-emission engine
that converts natural gas, methanol, or hydrogen fuel into electricity
without combustion. Ballard Fuel Cells are currently being used by
leading international companies including Daimler-Benz, General
Motors, Hitachi, Honda and Howaldtswerke- Deutsche Werft to develop
zero-emission vehicles and clean stationary electric power plants.

Ballard's Common shares are listed on The Toronto Stock Exchange under
the trading symbol "BLD" and on the Nasdaq National Market System
under the symbol "BLDPF".