GPU Comments on Fuel Cell Investments.

Business Editors

MORRISTOWN, NJ--(BUSINESS WIRE)--January 27, 2000

GPU, Inc., in response to a sharp increase in shareholder inquiries, has provided the following information regarding its investment in Ballard Generation Systems (BGS) and its involvement in the commercialization of fuel cell power supplies.

GPU and Ballard Power Systems (NASDAQ:BLDP) of Vancouver British Columbia formed BGS in December 1996 and have been working since then to develop and ultimately commercialize a range of products utilizing fuel cells for use in homes and businesses.

These products, ranging from a 250 kilowatt unit for commercial buildings to a 1-10 kilowatt unit for homes, will be delivered and tested in field trial programs during the next few years. A 250 kilowatt BGS fuel cell power plant is now operating at the Crane Naval Air Station in Indiana and others will be installed soon in Europe and Japan. The products use Ballard's leading PEM (proton exchange membrane) fuel cell technology, which is licensed exclusively to BGS. BGS fuel cell generators produce electric power by combining hydrogen derived from fossil fuels with oxygen to create electricity without combustion.

GPU anticipates making its final $4 million milestone payment within the next few months to complete its $23.25 million investment into BGS. GPU will own approximately 13 percent of BGS with the remainder owned by partners Ballard Power Systems, Alstom SA of France and Ebara of Japan. Ebara and Alstom provide BGS with manufacturing capabilities and access to the European and Japanese markets.

GPU also owns warrants to purchase 300,000 shares of Ballard Power Systems stock at Cdn $9.15 per share, equal to approximately US $6.33 per share at the current exchange rate. Ballard shares closed at US $62.563 yesterday, January 26.

&uot;We have always believed that the fuel cell will play an important role in the future supply of power to residential and small commercial users,&uot; said Fred D. Hafer, chairman, president and chief executive officer of GPU, Inc.

&uot;As fuel cell technology progresses, GPU anticipates providing the different kinds of utility services our customers will require in the future,&uot; Hafer said. &uot;We expect that BGS will ultimately be able to offer a full line of fuel cell power supply products to residential and commercial users of all sizes.&uot;

Areas in which GPU may participate include the sales, installation and service of fuel cells in its service territory and across the regional and national markets where its subsidiaries have a presence.

The status of fuel cell commercialization efforts at Ballard has been highlighted by recent collaboration announcements. BGS, with two Japanese partners, Tokyo Gas and Ebara Corporation, will develop a prototype one-kilowatt fuel cell system that will provide electric power, heat and hot water for Japanese homes. In North America, a collaboration with Coleman Powermate, Inc., a subsidiary of Sunbeam Corporation, will develop power products using fuel cells for portable and standby uses, such as during severe weather disruptions. Fifty prototype units will be produced and tested. Coleman subsequently plans to market the products to North American consumers through its network of retailers and distributors.

GPU, Inc. (NYSE: GPU), headquartered in Morristown, NJ, is a registered public utility holding company providing utility and utility related services to customers throughout the world. GPU serves 4.6 million customers directly through its electric distribution subsidiaries -- GPU Energy in the United States, Midlands Electricity plc. in the United Kingdom and GPU Emdersa in Argentina. It serves another 1.4 million customers indirectly through its electric and gas transmission subsidiaries, GPU GasNet and GPU PowerNet in Australia. GPU's revenues were $ 4.3 billion and its total assets were $16.3 billion in 1998. Other GPU subsidiaries include GPU Advanced Resources, Inc., GPU International, Inc., GPU Nuclear, Inc., GPU Service, Inc. and GPU Telcom Services, Inc. (http://www.gpu.com)

This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements made that are not historical facts are forward-looking and, accordingly, involve risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Although such forward-looking statements have been based on reasonable assumptions, there is no assurance that the expected results will be achieved. Some of the factors that could cause actual results to differ materially include, but are not limited to: the effects of regulatory decisions; changes in law and other governmental actions and initiatives; the impact of deregulation and increased competition in the industry; industry restructuring; expected outcomes of legal proceedings; the completion of generation asset divestiture; fuel prices and availability; the effects of the Year 2000 issue; and uncertainties involved with foreign currency fluctuations.