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Ford, Daimler-Benz and Ballard Work Jointly to Develop Fuel-Cells

7 April 1998

Ford, Daimler-Benz and Ballard Complete Agreement To Develop Fuel-Cell Technology for Future Vehicles

    BASEL, Switzerland, April 7 -- The global alliance whose goal
is to be the world's leading commercial producer of fuel-cell-powered drive
trains and components for cars, trucks and buses was formalized today by
Ballard Power Systems , Daimler-Benz AG and Ford Motor Company
.
    Representatives met in Basel, Switzerland, to complete and sign the final
alliance agreements.  The three companies had worked enthusiastically toward
this objective since signing a memorandum of understanding on Dec. 15, 1997,
in Stuttgart, Germany.
    Under the agreement, which consists of three parts, Ballard will be
responsible for fuel cells, with Daimler-Benz and Ford holding 20 percent and
15 percent of Ballard Power Systems Inc., respectively.
    Daimler-Benz will have majority ownership of DBB Fuel Cell Engines GmbH,
which is responsible for fuel-cell systems, with Ballard holding about 27
percent and Ford 22 percent.
    Ford will be the majority owner of a new company responsible for electric
drive train systems, with Ballard and Daimler-Benz owning 21 percent and 17
percent, respectively.
    Ford's total investment in the alliance is about Can. $600 million (U.S.
$420 million), consisting of cash, technology and assets.  Together, Ballard,
Daimler-Benz and Ford have invested over a billion Canadian dollars in this
alliance.
    Mazda Motor Corporation will participate in the Ford/Daimler-Benz/Ballard
alliance, through its close association with Ford Motor Company.
    Ford is making its investment in Ballard through its wholly owned
subsidiary, Ford Global Technologies, Inc., and has acquired an aggregate of
4,079,055 Common shares in the capital of Ballard.  These shares constitute
all of the Common shares in Ballard that Ford owns, controls or directs.  In
addition, in order to permit Ford to appoint a number of directors in
proportion to its holdings of Common shares (currently one director), Ford has
direction over one Series 3 Preferred share in Ballard, the terms of which
grant these rights specifically to Ford.  The acquisition of Common shares was
made through the issuance of 3,746,900 Common shares from Ballard's treasury
and the private purchase of 332,155 Common shares from Daimler-Benz.  Ford has
made the acquisition to participate in the global alliance with Ballard.
There is no other person acting jointly or in concert with Ford in connection
with its acquisition of securities of Ballard.

SOURCE  Ford Motor Company