Ballard Successfully Completes CDN $156 Million/US $100 Million Equity Financing

    VANCOUVER, British Columbia--Dec. 30, 2002-- Further to its releases of December 11, 2002 and December 18, 2002, Ballard Power Systems (TSX:BLD) announced that it has successfully completed the issuance of 7.7 million common shares of Ballard to an underwriting syndicate led by RBC Capital Markets and CIBC World Markets, with BMO Nesbitt Burns, National Bank Financial, TD Securities and UBS Bunting Warburg. The common shares were sold on a "bought deal" basis at a price of CDN $20.25 per common share or US $13.016 per common share for total net proceeds of approximately CDN $149.1 million or US $95.8 million, after deducting the Underwriters' fee and the estimated expenses of the offering.
    "We believe that as a result of the offering, in addition to our previously announced funding commitments from our partners DaimlerChrysler and Ford, we have sufficient cash resources to fund our planned operations beyond 2007 and, therefore, have significantly improved our ability to achieve positive cash flow from operations," said Dennis Campbell, Ballard's President and Chief Operating Officer.
    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 Law 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. 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(R) fuel cells. Ballard has supplied fuel cells to Honda, Nissan, Volkswagen, Yamaha, Cinergy and Coleman Powermate, among others. Ballard, the Ballard logo and Power to Change the World are registered trademarks of Ballard Power Systems Inc.