Ballard Power Systems Announces Closing of the $861.0-Million Acquisition of XCELLSIS Fuel Cell Engines

    VANCOUVER, B.C.--Nov. 30, 2001--Ballard Power Systems , announced today the closing of its previously announced acquisition of XCELLSIS and Ecostar Electric Drive Systems from DaimlerChrysler and Ford culminating in a 20-year vehicular fuel cell alliance agreement.
    The transaction, including a private placement of $55.0 million in Ballard common shares to DaimlerChrysler and Ford, is valued at $861.0-million (US $547.0-million). Ballard will issue to DaimlerChrysler and Ford a total of 18,403,523 common shares for the acquisition and a further 2,023,173 common shares for the private placement.
    "Today marks the beginning of a new era for Ballard's customers, employees and shareholders," said Firoz Rasul, Chairman and Chief Executive Officer. "We will maintain our leadership position by delivering complete product solutions to our customers."

    Ballard Power Systems is recognised as the world leader in developing, manufacturing and marketing zero-emission proton exchange membrane ("PEM") fuel cells for use in transportation, electricity generation and portable power 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(R) fuel cell that combines hydrogen (which can be obtained from methanol, natural gas, petroleum or renewable sources) and oxygen (from air) without combustion to generate electricity. Ballard is partnering with strong, world-leading companies, including DaimlerChrysler, Ford, ALSTOM and EBARA, to commercialise BALLARD(R) fuel cells. Ballard has also supplied fuel cells to Honda, Nissan, Volkswagen, Yamaha, Cinergy, Coleman Powermate and Matsushita Electric Works, among others. Ballard Material Products, a subsidiary of Ballard Power Systems, is a Tier 1 automotive supplier of friction materials for power train components to General Motors and Borg Warner, as well as a supplier of gas diffusion layer materials for the fuel cell industry.

    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, the Ballard logo and Power to Change the World are registered trademarks of Ballard Power Systems Inc.