Ballard Confirms Ford's TH!NK City Decision Will Not Affect 2002 Revenue Guidance

VANCOUVER, British Columbia--Sept. 3, 2002-- Ballard Power Systems announced today that Ford Motor Company's recent decision to not place the battery electric TH!NK City vehicle into North American production will have no impact on Ballard's 2002 revenue guidance of $82-million. Ballard was to supply the electric drive for this vehicle. "Ballard supports Ford Motor Company's decision to focus their resources on the development of fuel cell and hybrid vehicle technology," said Paul Lancaster, Ballard's Vice President, Finance. "Ballard will not be revising its revenue guidance as a result of Ford's decision as the impact on Ballard's revenue for 2002 will be negligible due to the conservative forecast it uses for new products."

"Ballard is continuing to develop its electric drive technology for use in airport ground support equipment, hybrids and fuel cell vehicles," said Ross Witschonke, Ballard's Vice President and General Manager, Electric Drives & Power Conversion Division. "Ballard has a right of first refusal to supply Ford's electric drive requirements and it will continue to work with Ford to identify opportunities for Ballard's technology."

Ballard Power Systems is recognized as the world leader in developing, manufacturing and marketing zero-emission proton exchange membrane fuel cells. Ballard is commercializing fuel cell engines for transportation applications and fuel cell systems for portable and stationary products ranging from 1 kilowatt to 250 kilowatts. Ballard is also commercializing electric drives for fuel cell and battery-powered electric vehicles, power conversion products for fuel cells, natural gas and hydrogen generator sets and other distributed generation 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, portable power and stationary product manufacturers to develop environmentally clean products for sale. Ballard is partnering with strong, world-leading companies, including DaimlerChrysler, Ford, EBARA, ALSTOM and FirstEnergy, to commercialize BALLARD® fuel cells. Ballard has supplied fuel cells to Honda, Nissan, Volkswagen, Yamaha, Cinergy, Coleman Powermate and Matsushita Electric Works, among others.