Ballard Strengthens Relationship with Ebara and
Simplifies Stationary Alliance
VANCOUVER, BRITISH COLUMBIA--OCTOBER 1, 2001 - 08:06 EDT
Ballard Power Systems ("Ballard")
announced today that it has signed a Memorandum of Understanding
("MOU") with EBARA Corporation ("EBARA") to enhance their
strategic relationship and simplify their stationary power
alliance. Under the MOU, Ballard will acquire EBARA's interest in
Ballard Generation Systems (BGS), Ballard's stationary power
products subsidiary. The MOU is consistent with Ballard's plans to
enhance its ownership of BGS and streamline the development of
Ballard's commercial stationary power generators.
Ballard will purchase EBARA's interest in BGS for US$35.8 million,
through the issue of Ballard's common shares (based on the 10-day
average closing price of Ballard's shares on NASDAQ, ending three
days before closing). EBARA has agreed to not sell the Ballard
common shares for a period of four years. The transaction is
expected to close in November 2001, subject to the completion of
formal documentation and regulatory approvals.
The acquisition of Ebara's interest in BGS is part of Ballard's
strategy to simplify its corporate and operational structure and
enhance its ability to leverage product development investments
across markets. This will enhance the development of commercial
stationary fuel cell generators.
EBARA's and BGS's jointly held company, EBARA BALLARD Corporation
(EBC) based in Japan, will continue to be owned as to 51 percent
by EBARA and 49 percent by BGS. However, its development
activities will be enhanced and more fully integrated with BGS's
activities. EBARA BALLARD has exclusive manufacturing and
distribution rights for Ballard's fuel cell stationary power
generators in Japan. EBC is developing distributed power
generation products for both residential and commercial consumers
and anticipates launching its first product in 2004.
"EBARA is a key strategic partner for the commercialization of our
stationary power generators. Enhancing our relationship with EBARA
allows us to work together more efficiently to bring products to
market," said Jim Kirsch, President of Ballard Generation Systems.
"It also reflects that Ballard and EBARA have expanded their
relationship beyond stationary power generators to include
co-operation on the development of components for fuel cells and
fuel cell systems."
"We see PEM fuel cells revolutionizing power generation in the
coming years and Ballard and EBARA being identified with that
revolution," said Mr. Hiroyuki Fujimura, Chairman of EBARA. "Our
ability to work together will be strengthened by the enhanced
relationship we are putting in place today. We see EBARA BALLARD
becoming the pre-eminent fuel cell power generator manufacturer in
Japan."
"We are always looking at ways to simplify our business and
enhance our ability to bring commercial products to market," said
Firoz Rasul, Ballard Power Systems' Chairman and Chief Executive
Officer. "While we execute on our plan to simplify our stationary
power alliance, we have been able to strengthen our relationship
with EBARA and enhance EBARA BALLARD and our stationary power
business."
BGS was formed in 1996 to commercialize PEM fuel cell stationary
power generators that use the BALLARD(r) fuel cell. Following this
transaction, Ballard Power Systems will own 81.6 percent of BGS.
The remaining shares of BGS are held by ALSTOM France S.A.
EBARA Corporation is globally recognized as a major developer,
manufacturer and distributor of fluid machinery and systems,
precision machinery and environmental engineering systems and as a
leader in zero-emission energy technology.
Ballard Power Systems is recognised as the world leader in
developing, manufacturing and marketing zero-emission proton
exchange membrane ("PEM") fuel cells for use in transportation,
electricity generation and portable power products. Ballard Power
Systems' proprietary fuel cell technology is enabling automobile,
electrical equipment and portable power product manufacturers to
develop environmentally clean products for sale. The fundamental
component of these end-user products is the BALLARD(r) fuel cell
that combines hydrogen (which can be obtained from methanol,
natural gas, petroleum or renewable sources) and oxygen (from air)
without combustion to generate electricity. Ballard is partnering
with strong, world-leading companies, including DaimlerChrysler,
Ford, ALSTOM and EBARA, to commercialise BALLARD(r) fuel cells.
Ballard has also supplied fuel cells to Honda, Nissan, Volkswagen,
Yamaha, Cinergy, Coleman Powermate and Matsushita Electric Works,
among others.
This release contains forward-looking statements reflecting
Ballard's current expectations as contemplated under the Safe
Harbor provisions of the US Private Securities Litigation Reform
Law of 1995. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, including, without
limitation, product development delays, changing environmental
regulations, the ability to attract and retain business partners,
future levels of government funding, competition from other fuel
cell manufacturers, competition from other advanced power
technologies, competition from existing power technologies,
evolving markets for generating electricity and power for
transportation vehicles, and the ability to provide the capital
required for product development, operations and marketing. These
factors should be considered carefully and readers should not
place undue reliance on Ballard's forward-looking statements.
Investors are encouraged to review the section titled "Operating
Results, Capital Requirements and Risks" (pages 41 to 46) in the
Management's Discussion and Analysis section of Ballard's 2000
Annual Report for a more complete discussion of factors that could
affect Ballard's future performance.
EBARA's Common shares are listed on the Nikkei exchange under the
trading symbol "EBARA".
Ballard's Common shares are listed on The Toronto Stock Exchange
under the trading symbol "BLD" and on the Nasdaq National Market
System under the symbol "BLDP." Ballard, the Ballard logo and
Power to Change the World are registered trademarks of Ballard
Power Systems Inc. |
