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Corporate Partnership Formed to Demonstrate Fuel Cell Vehicles

20 April 1999

Ballard, DaimlerChrysler, Ford, Arco, Shell, Texaco and the State of California Form Partnership to Demonstrate Fuel Cell Vehicles

    SACRAMENTO, Calif.--April 20, 1999--Ballard Power Systems announced today a major step forward in the commercialization of fuel cells for transportation applications with the formation of the "California Fuel Cell Partnership - Driving for the Future." Under this unique collaboration between automobile manufacturers (DaimlerChrysler and Ford Motor Company), energy providers (ARCO, Shell, and Texaco), the State of California, and Ballard Power Systems, vehicles using Ballard(R) fuel cells will be demonstrated and tested in real-life operating conditions.
    The California Fuel Cell Partnership will place about 50 fuel cell vehicles on the road between 2000 and 2003. Ford and DaimlerChrysler will each initially provide five fuel cell powered passenger cars by 2001. The Partnership will work with California transit agencies to test approximately 25 buses. The vehicles will use Ballard fuel cells and will be powered with engines and electric drives developed by Ballard's alliance partners, dbb fuel cell engines inc. (dbb) and Ecostar Electric Drive Systems (Ecostar). dbb and Ecostar are part of a global alliance formed between Ballard, DaimlerChrysler, and Ford to commercialize fuel cell drive trains for cars, buses and trucks.
    An important aspect of this partnership is that it moves fuel cells out of the lab and into demonstration vehicles for testing on public streets. By involving three leading fuel providers, the collaboration will also address the larger issue of fuel selection and infrastructure requirements in preparation for commercial market introduction.
    Through the California Fuel Cell Partnership, industry participants, the State of California, its citizens, and Ballard will gain insight into the real-life operation of this groundbreaking technology in cars and buses. Similar to Ballard and dbb's current bus demonstration programs operating in Chicago and Vancouver, experience from the California Partnership's demonstration programs will assist in preparing for the successful market introduction of fuel cell vehicles that may be fueled by alternative fuels such as hydrogen or methanol.
    "The California Fuel Cell Partnership shows the progress of the fuel cell industry to date, which Ballard through its leadership position in PEM fuel cells, has helped to bring about," said Firoz Rasul, President and Chief Executive Officer of Ballard Power Systems. "This field trial demonstration of cars is an important step on the path to successful introduction of fuel cell vehicles by the auto industry and the fuels they will require. It is fitting that demonstrations begin in California which has led the world in the search for clean transportation solutions."
    Ballard fuel cells offer the automobile industry the potential to offer commercial fuel cell vehicles that will be comparable to conventional powered cars in passenger space, acceleration, speed, range, lifetime, and refueling time. In addition, they will provide higher fuel efficiency and lower noise, vibration, and air emissions than vehicles powered by internal combustion engines. This combination makes fuel cells the most likely alternative technology to power the vehicles of the next century.
    Ballard Power Systems is the world leader in developing, manufacturing and marketing zero-emission proton exchange membrane (PEM) fuel cells for use in transportation, electricity generation and portable products. Ballard Power Systems' proprietary fuel cell technology is enabling automobile, electrical equipment and portable power product manufacturers to develop environmentally clean products for sale. The fundamental component of these end-user products is the Ballard fuel cell which combines hydrogen (which can be obtained from methanol, natural gas or petroleum) and oxygen (from air) without combustion to generate electricity. Ballard is partnering with strong, world-leading companies including DaimlerChrysler, Ford, GPU International, ALSTOM and EBARA to commercialize the Ballard fuel cell. Additional customers using the Ballard fuel cell include General Motors, Nissan, Honda, Volkswagen, Volvo, Matsushita Electric Works, and Cinergy.

    This release contains forward-looking statements reflecting Ballard Power Systems' current expectations as contemplated under the Safe Harbor provisions of the US Private Securities Litigation Reform Law of 1995. Investors are cautioned that all forward- looking statements involve risks and uncertainties, including, without limitation, product development delays, changing environmental regulations, the ability to attract and retain business partners, future levels of government funding, competition from other fuel cell manufacturers, competition from other advanced energy technologies, competition from existing energy technologies, evolving markets for electric power and transportation vehicles, and the ability to provide the capital required for product development, operations and marketing. Investors are encouraged to review the section Management's Discussion and Analysis in Ballard's 1998 Annual Report titled "Operating Results, Capital Requirements, and Risks" (pages 30 to 34) for a more complete discussion of factors that could affect Ballard's future performance.

California Fuel Cell Partnership Web Site - www.drivingthefuture.org

    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 "BLDP". Ballard and the Ballard logo are registered trademarks of Ballard Power Systems Inc.