DaimlerChrysler, Ford to Invest in Ballard

NEW YORK December 17, 2004; The AP reported that fuel cell maker Ballard Power Systems Inc. on Friday said it exercised its right to call a $55 million Canadian ($44.6 million) investment from DaimlerChrysler AG and Ford Motor Co.

Under the call agreement, which dates back to Dec. 31, 2003, DaimlerChrysler will purchase about 2.4 million Ballard common shares worth $30 million Canadian ($24.3 million). Ford will buy about 2 million shares for $25 million Canadian ($20.3 million). The companies will pay $12.34 Canadian ($10) per share.

Under a nonbinding agreement reached on July 8 this year, the share price would have been reset to market price if Ballard had not called the investment by year-end, the company said. The deal is expected to close in the first week of January.

"Discussions with respect to the transaction announced on July 8 of this year are ongoing and we continue to expect completion in the first half of 2005," said Ballard president and chief executive Dennis Campbell in a statement.

In February, the company said it was exploring strategic alternatives to improve an alliance with DaimlerChrysler and Ford. The companies reached the agreement in July to establish funding for further fuel cell development and to define the roles and responsibilities of their alliance.

In a separate alliance, DaimlerChrysler and General Motors Corp. reported an agreement this week to develop fuel-saving hybrid engines, which are considered a bridge to longer-range fuel cell vehicles.