Ballard and Millennium Cell Complete Joint Development Agreement

VANCOUVER, British Columbia, Nov. 12, 2002; Ballard Power Systems and Millennium Cell, a technology solutions company that has created an energy dense proprietary technology to safely store, deliver and generate pure hydrogen, have successfully completed their Joint Development Agreement. The two companies have moved into a new phase of their business relationship, with Ballard obtaining a licensing option for Millennium Cell's Hydrogen on Demand(TM) hydrogen fuel system and making a strategic investment in Millennium Cell.

Ballard has converted the $2.4 million prepaid license fee into a secured three-year debenture issued by Millennium Cell that is convertible into its common stock at $4.25 per share. Ballard retains its licensing option for the non-exclusive right to manufacture and sell products with Hydrogen on Demand(TM) technology for specific portable fuel cell products and internal combustion engine generator sets.

"Ballard is pleased to move forward in our relationship with Millennium Cell," said Dennis Campbell, Ballard's President and Chief Operating Officer. "Millennium Cell's technology represents a potential pathway for the practical delivery of hydrogen in a convenient and safe manner, and Ballard will continue to investigate opportunities for Millennium Cell's hydrogen fuel storage and delivery system with our customers."

"Ballard is the industry leader in proton exchange membrane fuel cells and Millennium Cell appreciates their support and investment in our future," said Dr. Stephen Tang, Millennium Cell's President and Chief Executive Officer. "Ballard's participation in this joint development activity has been critical to Millennium Cell's success and Ballard will continue to play an important role as our technology moves forward into commercial markets."

Founded in 1998, Millennium Cell is based in Eatontown, NJ and has developed a multi-faceted patent portfolio, which Millennium Cell is pursuing in the United States and internationally, surrounding a proprietary process called Hydrogen on Demand(TM). Hydrogen on Demand(TM) safely generates pure hydrogen from environmentally friendly raw materials. In the process, the energy potential of hydrogen is carried in the chemical bonds of sodium borohydride, which in the presence of a catalyst, releases hydrogen. The primary input components of the reaction are water and sodium borohydride, a derivative of borax. Borax is found in substantial natural reserves globally. Hydrogen from this system can be used to power fuel cells or can be fed directly to internal combustion engines. Millennium Cell also has a patented design for boron-based longer-life batteries.

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 other electric vehicles, power conversion products, natural gas and hydrogen generator sets 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® fuel cells. Ballard has supplied fuel cells to Honda, Nissan, Volkswagen, Yamaha, Cinergy, Coleman Powermate and Matsushita Electric Works, among others.