Ballard to Discontinue Sales and Marketing of its Combustion Engine Generator Sets.Energy Editors/Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--May 29, 2003 Ballard Power Systems Ballard Power Systems (TSX: BLD, NASDAQ: BLDP), located in Burnaby, British Columbia -- a suburb of Vancouver -- is a company that designs, develops, and manufactures zero emission proton-exchange-membrane fuel cells. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BLDP BLDP Ballard Power Systems (stock symbol) )(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BLD BLD Build BLD Blood BLD Blade BLD Blonde BLD Breakfast Lunch Dinner BLD Bukas-Loob Sa Diyos (Filipino: Open In Spirit To God) BLD BASIC Bload Graphics (File Name Extension) BLD Below Limit of Detection ) announced today that it is discontinuing the development, sale and marketing of its internal combustion engine Internal combustion engine A prime mover, the fuel for which is burned within the engine, as contrasted to a steam engine, for example, in which fuel is burned in a separate furnace. generator sets (gensets). Ballard began development of natural gas and hydrogen gensets in 2002 to generate early revenue and assist in the development of power generation distribution channels and hydrogen infrastructure. Ballard's decision to discontinue its genset activities will not impact development of its fuel cell product lines or commercialization plans. "We continually review our programs to ensure we are focussing Ballard's resources on technologies and products that have the best prospects for long-term success," said Dennis Campbell, Ballard's President and Chief Executive Officer. "Our product validation testing of the high-speed natural gas genset revealed some system related issues. Upon further review, we determined that the cost to resolve these issues would have reduced the competitive advantage of the natural gas genset. Without the base platform in place, the hydrogen fueled genset, with its more limited market potential, would have had to carry the entire cost of development. The decision was therefore made to exit the combustion engine genset business. We will continue to supplement our prime focus on fuel cell development with selected non-fuel cell derivative products, including electric drives, power electronics and carbon fiber materials, as we build a sustainable business A business is sustainable if it has adapted its practices for the use of renewable resources and holds itself accountable for the environmental and human rights impacts of its activities. ." Ballard will assess and evaluate various options with respect to the divestiture of assets from its genset activities. Ballard does not anticipate any material impact to its financial guidance for 2003 as a result of this decision. 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 section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. 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 A proton exchange membrane (PEM) is a semipermeable membrane generally made from ionomers and designed to conduct protons while being impermeable to gases such as oxygen or hydrogen. (PEM (Privacy Enhanced Mail) A standard for secure e-mail on the Internet. It supports encryption, digital signatures and digital certificates as well as both private and public key methods. Not widely used, work on PEM later evolved into S/MIME. See MIME. ) 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 and is a Tier 1 automotive supplier of friction materials for power train components. Ballard's proprietary technology is enabling automobile, bus, electrical equipment A piece of electrical equipment is a machine, powered by electricity and usually consists of an enclosure, a variety of electrical components and often a power switch. Examples of Electrical Equipment
Ballard, the Ballard logo and Power to Change the World are registered trademarks of Ballard Power Systems Inc. |
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