Hydrogenics And GM Combine To Form Hydrogen Partnership

TOKYO, Oct. 17 -- General Motors Corporation and Hydrogenics Corporation announced today the two companies have formed a strategic alliance to accelerate the development of fuel cell technology into global commercial markets. The alliance will include shared intellectual property rights and joint efforts in fuel cell product development, engineering, prototyping, testing, branding, and marketing strategies. As part of the agreement, GM will acquire more than 11 million shares of Hydrogenics common stock, or approximately 24% of Hydrogenics' outstanding shares. Hydrogenics will also issue GM warrants to acquire an additional 2.4 million Hydrogenics common shares, representing an additional 5% of outstanding equity. "GM and Hydrogenics share a joint vision to commercialize fuel cell technology and develop the energy and propulsion systems that will use this technology," said Larry Burns, GM vice president of research and development, and planning. "Hydrogenics offers innovative applications for fuel cells, and we believe we have added a key player to our GM team, bringing us one step closer to fuel cell commercialization." Pierre Rivard, Hydrogenics president and chief executive officer, added, "We are delighted to be partnering with the world's largest vehicle manufacturer and the world's leading developer of fuel cell technology. Our relationship with GM and the members of its world class innovation and technology team will significantly enhance our ability to take advantage of markets across the transportation, stationary, and portable power spectrum. I am confident that our collective efforts will significantly accelerate the introduction of fuel cell vehicles and other products into commercial use."

Headquartered in Toronto, Hydrogenics develops and commercializes proton exchange membrane (PEM) fuel cell systems for clean power generation, including related subsystems and associated fuel cell diagnostic monitoring and control equipment. The company is applying the knowledge and expertise acquired from the development and manufacture of its proprietary FCATS(TM) line of fully automated test and control systems to the development of tomorrow's fuel cell power products.

General Motors , the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide. In 2000, GM earned $4.5 billion on sales of $184.6 billion. It employs about 386,000 people globally. General Motors is actively involved in fuel cell research and development. The company has demonstrated continuously improved mobile and stationary fuel cell applications, including the world's first gasoline processor, and has developed a fuel cell with the world's highest degree of power density.

To further its fuel cell development, GM has established ownership positions and technical partnerships with leading companies in the field, including General Hydrogen, Quantum Technologies, and Giner Electrochemical Systems.