Ballard and EBARA Corporation to Develop Pilot-Scale Manufacturing for Fuel Cell Membranes

    VANCOUVER, British Columbia--May 21, 2002-- Ballard Power Systems and the Precision Machinery Group of EBARA Corporation and EBARA Research Co. Ltd. (EBARA) today announced that they have entered into an exclusive agreement to develop pilot scale manufacturing processes and equipment for Ballard's BAM(R) Grafted Proton Exchange Membrane (PEM). This agreement combines EBARA's core processing and manufacturing capabilities with Ballard's expertise in membrane development for Ballard(R) fuel cells.
    The agreement consists of an initial 18-month development period jointly funded by both parties. During this period, EBARA will construct and demonstrate its pilot-scale manufacturing capabilities for BAM(R) Grafted PEM. Ballard will validate the performance specifications of the membrane manufactured by EBARA through demonstration in Ballard(R) fuel cell systems.
    Ballard's BAM(R) Grafted PEM represents an advancement in membrane technology as it uses a commercially available base substrate, combined with proprietary active components, to meet specified operating requirements.
    "This agreement builds upon our relationship with EBARA and provides us with another pathway to achieve our goals of performance, reliability and cost reduction," said Firoz Rasul, Ballard's Chairman and Chief Executive Officer. "Ballard has developed significant experience and knowledge in its membrane development programs and is pleased to be moving another of its internally developed membrane technologies from the research and development stage to pilot-scale production."
    "EBARA is pleased to expand its relationship with Ballard," said Mr. Hiroyuki Fujimura, Chairman of EBARA. "EBARA's goal is to become a key participant in this growing industry and we look forward to demonstrating our expertise in reel to reel processing of thin-film materials through the manufacture of Ballard's BAM(R) Grafted PEM."
    EBARA Corporation is globally recognized as a major developer, manufacturer and distributor of fluid machinery and systems, precision machinery and environmental engineering systems and as a leader in zero-emission technology. EBARA is a direct shareholder in Ballard, as well as a 51% owner of EBARA BALLARD Corporation, a jointly held company with Ballard Generation Systems Inc. that has exclusive manufacturing and distribution rights for Ballard(R) fuel cell power generators in Japan.
    This release contains forward-looking statements that are based on the beliefs of Ballard's management and reflect Ballard's current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. When used in this release, the words "estimate", "project", "believe", "anticipate", "intend", "expect", "plan", "predict", "may", "should", "will", the negative of these words or such other variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current views of Ballard with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in those forward-looking statements.
    Ballard Power Systems is recognized as the world leader in developing, manufacturing and marketing zero-emission proton exchange membrane ("PEM") fuel cells. Ballard is commercializing fuel cell engines for transportation applications and fuel cell systems for portable and stationary products ranging from 1 kilowatt to 250 kilowatts. Ballard is also commercializing electric drives for fuel cell and battery-powered electric vehicles, power conversion products for fuel cells and other distributed generation products, and is a Tier 1 automotive supplier of friction materials for power train components. Ballard's proprietary technology is enabling automobile, bus, electrical equipment, portable power and stationary generator manufacturers to develop environmentally clean products for sale. Ballard is partnering with strong, world-leading companies, including DaimlerChrysler, Ford, EBARA, ALSTOM and FirstEnergy, to commercialize Ballard(R) fuel cells. Ballard has supplied fuel cells to Honda, Nissan, Volkswagen, Yamaha, Cinergy, Coleman Powermate and Matsushita Electric Works, among others.
    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. BAM is a registered trademark of Ballard Advanced Materials, a subsidiary of Ballard Power Systems Inc.