Daimler-Benz, Ford and Ballard Complete Agreement to Develop Fuel-Cell Technology for Future Vehicles.

BASEL, Switzerland--(BUSINESS WIRE)--April 7, 1998--The global alliance whose goal is to be the world's leading commercial producer of fuel-cell-powered drivetrains and components for cars, trucks and buses was formalized today by Ballard Power Systems, Daimler-Benz AG and Ford Motor Company.

Representatives met in Basel, Switzerland, to complete and sign the final alliance agreements. The three companies had worked enthusiastically toward this objective since signing a memorandum of understanding on December 15, 1997, in Stuttgart, Germany.

Under the agreement, which consists of three parts, Ballard will be responsible for fuel cells, with Daimler-Benz and Ford holding 20 percent and 15 percent of Ballard Power Systems Inc., respectively.

Daimler-Benz will have majority ownership of DBB Fuel Cell Engines GmbH, which is responsible for fuel-cell systems, with Ballard holding about 27 percent and Ford 22 percent.

Ford will be the majority owner of a new company responsible for electric drivetrain systems, with Ballard and Daimler-Benz owning 21 percent and 17 percent, respectively.

Ford's total investment in the alliance is about Can. $600 million (U.S. $420 million), consisting of cash, technology and assets. Together, Ballard, Daimler-Benz and Ford have invested over a billion Canadian dollars in this alliance.

Mazda Motor Corporation will participate in the Ford/Daimler-Benz/Ballard alliance, through its close association with Ford Motor Company.

Ford has acquired an aggregate of 4,079,055 Common shares in the capital of Ballard. In addition, in order to permit each of Daimler-Benz and Ford to appoint a number of directors in proportion to its holdings of Common shares (currently two directors for Daimler-Benz and one for Ford), each of them has direction over one Preferred share in Ballard, the terms of which specifically grant these rights. The acquisition of Common shares by Ford was made through the issuance of 3,746,900 Common shares from Ballard's treasury and the private purchase from Daimler-Benz of 332,155 of the 5,770,916 Common shares, which Daimler-Benz acquired in August, 1997 for investment purposes in connection with the global alliance. -0-

Daimler-Benz is the world's most comprehensive provider of technologically advanced transportation products, systems and services, and has around 300,000 employees and annual revenues of approximately $70 billion. Daimler-Benz is focused on the development and manufacture of Mercedes-Benz cars and commercial vehicles, Freightliner and Sterling trucks as well as Adtranz rail systems, MTU diesel engines and TEMIC automotive electronics. Daimler-Benz Aerospace builds aircraft and space systems and Daimler-Benz InterServices provides leasing and sales financing, mobile communications and information technologies. North America, where Daimler-Benz employs more than 20,000 people, is the largest regional market outside of Europe and accounts for approximately 20 percent of worldwide revenues. In 1993, Daimler-Benz became the first German company to list its stock on the New York Stock Exchange (symbol: DAI).

CONTACT: Daimler-Benz NA Corp., Bernhard Harling

Tel: [phone], Fax: [phone]

or

Ballard Power Systems Inc., Debby Roman

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or

Ford Motor Company, Terry Bresnihan

Tel: [phone], Fax: [phone]