TORONTO, Oct. 16 /CNW/ -- General Motors Corporation (NYSE: GM) and
Hydrogenics Corporation (Nasdaq: HYGS; Toronto: HYG) announced today that the
two companies have formed a strategic alliance to accelerate the development
of fuel cell technology into global commercial markets. The alliance will
include shared intellectual property rights and joint efforts in fuel cell
product development, engineering, prototyping, testing, branding, and
marketing strategies.
As part of the agreement, GM will receive 11.3 million shares of
Hydrogenics common stock, or approximately 24% of Hydrogenics' outstanding
shares. Hydrogenics will also issue GM warrants to acquire an additional
2.4 million Hydrogenics common shares, bringing GM's stake to 28% of
outstanding equity. GM will also appoint a representative to Hydrogenics'
Board of Directors in conjunction with the alliance, resulting in the
expansion of Hydrogenics' board from seven directors to eight.
"GM and Hydrogenics share a joint vision to commercialize fuel cell
technology and develop the energy and propulsion systems that will use this
technology," said Larry Burns, GM Vice President of research and development,
and planning. "Hydrogenics offers innovative applications for fuel cells, and
we believe we have added a key player to our GM team, bringing us one step
closer to fuel cell commercialization."
Pierre Rivard, Hydrogenics President and Chief Executive officer, added,
"We are delighted to be partnering with the world's largest vehicle
manufacturer and the world's leading developer of fuel cell technology. Our
relationship with GM and the members of its world class innovation and
technology team will significantly enhance our ability to penetrate markets
across the transportation, stationary, and portable power spectrum. I am
confident that our collective efforts will significantly accelerate the
introduction of fuel cell vehicles and other products into commercial use."
Conference Call Details:
Hydrogenics will conduct a conference call to discuss the new corporate
alliance with General Motors. The call will be simultaneously webcast live on
Wednesday, October 17, 2001 at 10:00 a.m. EST / 7:00 a.m. PST. It will feature
Pierre Rivard, President and CEO of Hydrogenics, and Raymond Pollard of GM.
Interested parties are invited to listen to the call live via the
Hydrogenics corporate Web site, hydrogenics.com. Please go to the
web site at least 15 minutes early to register, download, and install any
necessary audio software. A replay of the call will be available on the
Hydrogenics corporate site two hours after the completion of the conference
call.
About Hydrogenics:
Headquartered in Toronto, Hydrogenics develops and commercializes proton
exchange membrane (PEM) fuel cell systems for clean power generation,
including related subsystems and associated fuel cell diagnostic monitoring
and control equipment. The company is applying the knowledge and expertise
acquired from the development and manufacture of its proprietary FCATS(TM)
line of fully automated test and control systems to the development of
tomorrow's fuel cell power products.
About General Motors:
General Motors (NYSE: GM), the world's largest vehicle manufacturer,
designs, builds and markets cars and trucks worldwide. In 2000, GM earned
$4.5 billion on sales of $184.6 billion. It employs about 386,000 people
globally. General Motors is actively involved in fuel cell research and
development. The company has demonstrated continuously improved mobile and
stationary fuel cell applications, including the world's first gasoline
processor, and has developed a fuel cell with the world's highest degree of
power density.
To further its fuel cell development, GM has established ownership
positions and technical partnerships with leading companies in the field,
including General Hydrogen, Quantum Technologies, and Giner Electrochemical
Systems.
This release contains forward-looking information that involves risks and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. These risks include the
following: (1) technological changes or changes in the competitive environment
adversely affecting the products, markets, revenues, or margins of the
companies' business; (2) changes in general economic, financial or business
conditions adversely affecting the business or the markets in which the
companies operate, (3) the ability to attract and retain customers and
business partners, and (4) dependency on third-party suppliers.
/Web site: hydrogenics.com |
