Ballard Power Systems, Osaka Gas, EBARA BALLARD and EBARA Advance Relationship

    VANCOUVER, Canada--July 17, 2002--Ballard Power Systems announced today that its subsidiary Ballard Generation Systems has signed a two-year agreement with Osaka Gas, EBARA BALLARD and EBARA Corporation to develop a 1 kW cogeneration stationary Proton Exchange Membrane (PEM) fuel cell system, comprised of a Ballard(R) fuel cell and an EBARA BALLARD system using Osaka Gas' fuel processing technology, for the Japanese residential market. Ballard Generation Systems and EBARA BALLARD also signed a License Agreement to use Osaka Gas' fuel processing technology worldwide for PEM fuel cell systems that are 10 kW or less.
    "This advanced relationship shows our progress towards the goal of commercialising residential fuel cell power generation technology in a number of markets in Japan," said Mike Murry, Ballard's Vice-President and General Manager, Power Generation Division. "Ballard's work with Osaka Gas complements our other development activities in Japan and expands our exposure in that market. It also allows us access to Osaka Gas' world class fuel processing technology."
    "Our relationship with Osaka Gas continues to advance," said EBARA BALLARD President, Masakatsu Ohya. "Today's licence agreement and our third phase collaboration agreement are necessary stages on the path to commercial market introduction and represent a strengthening of our relationship with Osaka Gas."
    EBARA BALLARD is a jointly held company of EBARA Corporation and Ballard Generation Systems with a mandate to supply fuel cell power generators incorporating Ballard(R) fuel cells to customers in Japan.
    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 energy technology.
    Osaka Gas Co. Ltd. is one of the largest natural gas utilities in Japan, serving more than 6,000,000 customers. They are developing compact and highly efficient fuel processing systems to accelerate the commercialization of residential PEM fuel cell cogeneration systems.
    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 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 product 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.
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