Ballard and EBARA Complete C$47.7 Million Transaction
Oddly, no mention of the Y2K problem <g>...
Steve
Tuesday December 1, 4:21 am Eastern Time
Company Press Release
Ballard and EBARA Complete C$47.7 Million Transaction To
Commercialize Ballard Stationary Power Plants
TOKYO--(BUSINESS WIRE)--Dec. 1, 1998--BALLARD POWER(NASDAQ:BLDPF - news; TSE:BLD. - news)
Ballard Power Systems announced today that its subsidiary Ballard Generation Systems has completed its US $31
million (C$47.7 million) agreement with EBARA Corporation. The agreement includes an investment by EBARA in Ballard Generation Systems and the
creation of a jointly held company with exclusive rights to sell, distribute, service and later manufacture, Ballard Fuel Cell stationary power plants for the
Japanese market.
Representatives met in Tokyo, Japan, to complete and sign the final alliance agreements. The companies have worked toward this objective since signing a
memorandum of understanding on May 20, 1998, in Vancouver, Canada.
In this transaction, EBARA will invest US$15 million in cash (C$23.1 million) for a 5.2 percent interest in Ballard Generation Systems and two 250 kW
Ballard Fuel Cell power plants for field testing in Japan. In addition, Ballard Generation Systems and EBARA will jointly invest US$16 million (C$24.6
million) to form a new company in Japan called EBARA Ballard Corporation. EBARA Ballard will sell, distribute, service and later manufacture fuel cell
power plants developed by Ballard Generation Systems for customers in Japan. The initial investment in EBARA Ballard consists of US$8.16 million
(C$12.57 million from EBARA for a 51 percent interest, and US$7.84 million (C$12.07 million) from Ballard Generation Systems for a 49 percent
interest.
''Following the completion of our European alliance earlier this year and the groundbreaking for our initial production facility, the completion of our
agreement with EBARA is another important step forward on our path to commercializing Ballard Fuel Cell stationary power plant products.'' said Scott
Weiner, President of Ballard Generation Systems. ''This partnership brings us important understanding and access to the Japanese market and extends
Ballard Generation Systems' global reach beyond North America and Europe with the formation of EBARA Ballard.''
''Supported by EBARA's commitment to the Zero Emission concept, Ebara focused on Ballard's PEM fuel cells as an indispensable technology for
building clean energy systems,'' stated Hiroyuki Fujimura, Chairman of EBARA Corporation. ''EBARA will be involved in the development of
cogeneration systems by combining Ballard Fuel Cell stationary power plants and EBARA's absorption chillers. EBARA also aims to build ultra low
emission energy systems based on Ballard Fuel Cell stationary power plants using methane gas from water treatment and waste treatment facilities as the
fuel.''
Ballard Generation Systems is a venture between Ballard Power Systems, GPU International, ALSTOM, and EBARA Corporation. Following the
completion of all investments which have been committed to by the partners, the ownership interests in Ballard Generation Systems will be 61 percent
Ballard, 14 percent GPU International, 20 percent ALSTOM and 5 percent EBARA.
GPU International is the non-regulated arm of GPU Inc. [NYSE:GPU - news], a major international electric company based in New Jersey. GPU serves a
worldwide population of over 13 million people with 4.4 million customers located in 12 countries.
ALSTOM is a world leader in the design, manufacture, supply and installation of equipment, systems and complete solutions for the power generation and
transmission industries and for rail transport. Headquartered in France, the Company is established internationally, with a total of 110,000 employees in 60
countries.
EBARA 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 technology. Headquartered in Japan, EBARA is established internationally with subsidiaries and
affiliates in 17 countries.
Ballard Power Systems is the world leader in the development of proton exchange membrane fuel cell power systems. At the heart of its products is the
Ballard Fuel Cell, a proprietary zero-emission engine that converts natural gas, methanol, gasoline, or hydrogen fuel into electricity without combustion.
Ballard Fuel Cells are currently being used by leading international companies including DaimlerChrysler, Ford, General Motors, Nissan, Honda,
Volkswagen, Volvo, Matsushita Electric Works, GPU International, ALSTOM, EBARA Corporation, and Cinergy to develop zero-emission engines for
vehicles and clean stationary power plants.
This report contains forward-looking statements reflecting Ballard Power Systems' 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. Investors are encouraged to review the Management's Discussion and Analysis section in Ballard's 1997
Annual Report titled ''Operating Results, Capital Requirements, and Risks'' (pages 22 to 26) for a more complete discussion of factors that could affect
Ballard's future performance.
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 ''BLDPF''.
Contact:
Ballard Power Systems Inc.
Michael Rosenberg, 604/412-3195
604/412-4700 (FAX)
investors@ballard.com
www.ballard.com
or
Ballard Power Systems Inc.
Debby Roman, 604/412-4740
604/412-3131 (FAX)
debrom@ballard.com
or
EBARA Corporation
Yoshio Muraki,
011/81 3 3743 6589 (FAX)
muraki@ebara.co.jp |
