Ballard Signs Exclusive Joint Agreement with MicroCoating Technologies

    VANCOUVER, B.C.--May 2, 2001--Ballard Power Systems Inc. and MicroCoating Technologies, Inc. (MCT) announced today that they have signed an exclusive agreement to develop MCT's proprietary Combustion Chemical Vapour Deposition process (CCVD) for use in the manufacture of BALLARD(R) fuel cells.
    Ballard will also acquire shares of convertible preferred stock, representing approximately three per cent of the equity of MCT on a fully diluted basis, at a price of $10.5 million (US$7.0 million).
    Under the joint development agreement, Ballard has acquired the exclusive rights, for a defined period, to licence MCT's proprietary CCVD technology for use in catalyst application for BALLARD(R) fuel cells. Ballard will also fund a portion of MCT's related development costs.
    "MCT's proprietary CCVD technology has the potential to decrease our catalyst loading and assist in reducing costs and improving performance, while providing manufacturing flexibility," said Kip Smith, Ballard's President and Chief Operating Officer. "This collaboration with MCT supports our long-term strategy to reduce costs and simplify manufacturing processes for BALLARD(R) fuel cell products."
    Mr. Smith will join the MCT board as part of Ballard's strategic investment in MCT.
    Andrew Hunt, MCT's founder and CEO, said, "Our relationship with Ballard began over three years ago, and we are excited about the potential incorporation of CCVD technology in PEM fuel cells. We are optimistic that our complementary technologies and management teams will result in successful fuel cell introductions."
    MCT's proprietary CCVD technology is an innovative open-atmosphere, flame-based technique for depositing high-quality thin films of advanced materials. This revolutionary process operates without the expensive vacuums required by other thin film deposition processes.