Ballard Power Systems and Millennium Cell Agree to Collaborate on Hydrogen Generators for Portable Power.

Business Editors

VANCOUVER, Canada & EATONTOWN, N.J.--(BUSINESS WIRE)--Oct. 30, 2000

Ballard Power Systems Inc. (NASDAQ:BLDP) and Millennium Cell Inc. (NASDAQ:MCEL) announced today that they have entered into a joint development agreement to further develop Millennium Cell's proprietary hydrogen generation system for use with Ballard's portable power fuel cell products. Under the terms of the agreement, Ballard has received the right to purchase up to 400,000 common shares of Millennium Cell stock at a predetermined price.

Upon successful completion of the joint development and product prototype agreement, Ballard will have the right to licence Millennium Cell's technology for use in its portable products on an exclusive basis for a defined period of time. Ballard paid US $2.4 million as an advance for prospective royalties payable under the licence.

"This agreement helps establish Millennium Cell's role as a provider of key enabling technology in the fuel cell industry," said Stephen Tang, Millennium Cell President and Chief Executive Officer. "Our goal is to commercialize a hydrogen-generating system that provides significant advantages over current hydrogen generation and storage methods. We recognize the value of working with an experienced leader of Ballard's calibre. This relationship will play a significant role in reaching an emerging mass market for portable power with a market leader."

"The successful development and commercialization of Millennium Cell's hydrogen generation system will complement Ballard's portable fuel cell products," said Kip Smith, Ballard President and Chief Operating Officer. "Fuel flexibility will enhance the commercial introduction of Ballard(R) fuel cells and we are excited about this promising technology."

Ballard Power Systems is recognized as the world leader in developing, manufacturing and marketing zero-emission proton exchange membrane (PEM) 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.

Millennium Cell has invented, patented and developed a proprietary process called Hydrogen On Demand(TM) that safely generates pure hydrogen or electricity 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 or produces electricity in PEM Fuel Cells. The primary input components of the reaction are water and sodium borohydride, a derivative of borax, which is found in substantial natural reserves globally.

This press release may include statements which are not historical facts and are considered "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Millennium Cell's current views about future events and financial performance. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "plan," "anticipate" and similar expressions identifying forward-looking statements. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Millennium Cell's expectations, and Millennium Cell expressly does not undertake any duty to update forward-looking statements. Ivestors should be aware of these risk factors. These factors include, but are not limited to, the following: (i) the cost and timing of development and market acceptance of Millennium Cell's fuel systems, (ii) competitive factors, such as price competition and new product introductions, (iii) the cost and availability of products, (iv) the cost of complying with current governmental regulations, and (v) other factors detailed from time to time in Millennium Cell's filings with the Securities and Exchange Commission.