Ballard, Tokyo Gas to Develop Fuel Processor for Residential Fuel Cell Generator.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 13, 2000

Ballard Power (Nasdaq:BLDP)(TSE:BLD.) Ballard Power Systems announced today that its subsidiary, Ballard Generation Systems, signed an agreement with Tokyo Gas, EBARA BALLARD, and EBARA Corporation to develop a fuel processor for a one-kilowatt natural gas-fuelled fuel cell power generator targeted at the Japanese residential market.

"This agreement takes us into the second phase of our relationship with Tokyo Gas," said Ballard Generation Systems President Jim Kirsch. "We intend to demonstrate a prototype before introducing a commercial product."

The agreement involves collaboration in the development of a fuel processor, which will be incorporated by EBARA BALLARD in a one-kilowatt proton exchange membrane (PEM) fuel cell power generator. The co-generation unit will provide electric power for Japanese homes and apartments as well as heat for space heating and hot water.

"Tokyo Gas is committed to finding residential power solutions that will meet the needs of our customers while also reducing emissions of greenhouse gases," said Yasuyuki Yamaguchi, Senior Managing Director of Tokyo Gas. "We see PEM fuel cell technology as the best new technology to deliver clean, reliable and cost-effective onsite residential power generation to our customers."

EBARA BALLARD, EBARA Corporation, Ballard Generation Systems, and Tokyo Gas collaborated on market research and product specification prior to signing the agreement.

"Tokyo Gas has extensive expertise in natural gas fuel processing," said EBARA BALLARD President Masakatsu Ohya. "Their expertise, combined with that of EBARA BALLARD and Ballard Generation Systems in PEM fuel cell power generators and EBARA Corporation's manufacturing skill, will accelerate the development of a commercial one-kilowatt residential power generator for Japan."

"EBARA Corporation's broad knowledge and experience in the development and manufacture of fluid and precision machinery as well as zero-emission technologies will allow us to support EBARA BALLARD in this undertaking," said EBARA Senior Managing Director Yoshio Hirayama. "We are confident that the result of this collaboration will be a power product that meets the needs of the Japanese public."

Tokyo Gas is the largest natural gas company in Japan both in terms of the number of customers - over 8.5 million in total - and gas sales volume. Founded in 1885, its service area now covers 3,129 square kilometres in the heart of the Kanto region, Tokyo and neighbouring prefectures, the largest and most densely populated region in Japan with a total of some 40 million people. Tokyo Gas is conducting research and development in many areas including cost reduction, safety enhancement and efficient utilization of natural gas, and fuel-processing technologies.

EBARA BALLARD is a jointly held company of EBARA Corporation and Ballard Generation Systems. Its mandate is to market and manufacture Ballard Generation Systems fuel cell power generators incorporating the Ballard(R) fuel cell to customers in Japan.

Ballard Generation Systems was formed to commercialize PEM fuel cell power generators that use the Ballard fuel cell. In addition to Ballard Power Systems, 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 the world leader in developing, manufacturing and marketing zero-emission PEM fuel cells for use in transportation, electricity generation and portable power products. Ballard Power Systems' 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 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 General Motors, Honda, Hyundai, Nissan, Volkswagen, Yamaha, Cinergy and Matsushita Electric Works, among others.

Ballard's Common shares are listed on The Toronto Stock Exchange under the trading symbol "BLD" and on the Nasdaq National Market System under the symbol "BLDP". Ballard and the Ballard logo are registered trademarks of Ballard Power Systems Inc.