Ballard Power Systems: EBARA Invests Additional US$19 Million in Ballard Subsidiary

6 July 2000

Ballard Power Systems: EBARA Invests Additional US$19 Million in Ballard Subsidiary

    VANCOUVER, B.C. - Ballard Power Systems announced today that EBARA Corporation has increased its ownership position in Ballard Generation Systems (BGS) to 11.4 per cent (10 per cent on a fully diluted basis) from six per cent for a total subscription price of US$19.1 million (Cdn$28.3 million).

    EBARA was granted the option to increase its ownership position of BGS to 10 per cent when EBARA made its original investment in 1998 as part of a US$31-million transaction.

    "EBARA has long shown a commitment to the development of fuel cell technology in stationary power systems," said BGS President Jim Kirsch. "This increase in EBARA's ownership position of Ballard Generation Systems reaffirms their commitment to Ballard and fuel cells and builds on the strategic partnership we established in 1998."

    "EBARA's commitment to zero-emission technologies is supported by our association with Ballard," said Hiroyuki Fujimura, Chairman of EBARA Corporation. "EBARA is involved in the development of cogeneration systems combining Ballard(R) fuel cell stationary power generators with EBARA's absorption chillers. EBARA also aims to build ultra low emission energy systems based on Ballard fuel cell stationary power generators using methane gas from wastewater treatment facilities as the fuel."

    "EBARA has given us an important understanding of the Japanese market and we have benefited from their broad expertise in zero-emission technology and manufacturing," said Firoz Rasul, Chairman and Chief Executive Officer of Ballard Power Systems. "EBARA has made an important contribution to our advances in the development of stationary power generators."

    BGS was formed to commercialize proton exchange membrane (PEM) fuel cell power generators that use the Ballard(R) fuel cell. In addition to Ballard Power Systems, which owns 67.8 per cent of BGS, its shareholders include GPU International Inc. of New Jersey, ALSTOM SA of France, and EBARA Corporation of 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.

    Ballard Power Systems is recognized as the world leader in developing, manufacturing and marketing zero-emission proton exchange membrane fuel cells for use in transportation, electricity generation and portable power products. Ballard's proprietary fuel cell technology is enabling automobile, electrical equipment and portable power product manufacturers to develop environmentally clean products for sale. The fundamental component of these end-user products is the Ballard(R) fuel cell that combines hydrogen (which can be obtained from methanol, natural gas or petroleum) and oxygen (from air) without combustion to generate electricity. Ballard is partnering with strong, world-leading companies, including DaimlerChrysler, Ford, GPU International, ALSTOM and EBARA, to commercialize Ballard fuel cells. Ballard has also supplied fuel cells to Honda, Nissan, Volkswagen, Yamaha, Cinergy, Coleman Powermate and Matsushita Electric Works, among others.