Ballard, Dantherm, Danfoss Invest to Create Leading European Fuel Cell Backup Power Systems Capability

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Jan 18, 2010, 06:30 ET

    - Dantherm Power develops clean energy, fuel cell backup power systems
    - Partners bring extensive expertise in fuel cells and other clean energy
      solutions
    - Joint investment in Dantherm Power will accelerate development of fuel
      cell markets

VANCOUVER, Jan. 18 /PRNewswire/ - Ballard Power Systems (TSX: BLD; NASDAQ: BLDP) announced that it has acquired a controlling interest in Denmark-based Dantherm Power, partnering with co-investors Danfoss A/S and Dantherm A/S.

Dantherm Power develops clean energy backup power systems, utilizing Ballard's hydrogen fuel cell technology, for telecom equipment suppliers including Motorola and Ericsson. The joint investment and partnering support from Ballard, Danfoss and Dantherm is expected to result in accelerated development of fuel cell backup power applications across Europe.

"Dantherm Power has a strong track record in fuel cell backup power systems in telecommunications, including the largest European fuel cell installation for TETRA emergency networks as well as for telecom service providers", said John Sheridan, Ballard's President and CEO. "Through this Dantherm Power investment, Ballard will now be actively involved with delivery of complete backup power systems, in addition to providing fuel cell stacks and power modules to leading companies including IdaTech, Plug Power, Baxi Innotech and ISE Corporation, in other markets."

Torben Duer, President and CEO of Dantherm A/S, which is a manufacturing partner of Dantherm Power, added "Dantherm Power is already supplying clean energy power products to some of our key customers, like Motorola. This investment will increase momentum behind fuel cell product development work at Dantherm Power and will help accelerate growth of fuel cell power in the backup telecom market."

"This strategic co-investment with Ballard, the leader in fuel cells, and Dantherm A/S creates a leading supplier of fuel cell power solutions", commented Niels Christiansen, President and CEO of Danfoss A/S. "We believe that this relationship will work well for our clean energy strategy, which today includes wind, solar and biofuels. We believe that fuel cell power can play an important role in our key markets, including renewable energy products and environmentally friendly heating."

Investment Details

Ballard is investing $6 million for a controlling interest in Dantherm Power, in two tranches between 2010 and 2012. Ballard will also provide knowledge and intellectual property related to core fuel cell technology. Dantherm Power will continue its current commercial initiatives, including sales of hydrogen-based products incorporating Ballard's fuel cell stack. In addition to its cash investment, Dantherm A/S will continue to provide operational support and collaborative sales and marketing activities through its worldwide sales organization. Danfoss A/S will invest cash, proprietary technology, expertise, as well as operational and commercial assistance through its network of 93 sites in 25 countries. Executives from the three companies will form a new board of directors for Dantherm Power.

Background

Ballard Power Systems provides clean energy fuel cell products enabling optimized power systems for a range of applications. Ballard provides fuel cell stacks to leading fuel cell companies including IdaTech, LLC, Plug Power Inc., Baxi Innotech GmbH, Heliocentris Fuel Cells AG and FutureE Fuel Cell Solutions GmbH. Ballard also provides power modules to system integrators seeking a 'plug-and-play' approach including, for example, ISE Corporation which integrates Ballard power modules with hybrid electric drives on transit buses. Now with this investment in Dantherm Power, Ballard will also be actively involved with the delivery of complete backup power systems for OEM's and other suppliers to the telecom sector in Europe.

About Dantherm Power

Dantherm Power is a 40-person company focused on development and production of commercially viable fuel cell-based backup power systems for use in IT and telecom network base stations. A significant recent market achievement has been the development, and deployment with Motorola, of 123 fuel cell based backup power systems for radio stations connected to Denmark's new public safety network - SINE. To learn more about Dantherm Power, please visit http://www.dantherm-power.com.

About Danfoss A/S

Danfoss A/S is one of the largest industrial companies in Denmark with a global group focused on development and manufacture of mechanical and electronic components for a number of industries, including solar energy, heating, industrial automation, water control and high pressure systems. Danfoss A/S generated revenue of 3.6B Euros in 2008, with over 26,000 employees in Europe, North America, Latin America, Asia and other regions. Danfoss A/S is actively involved in clean energy solutions based on solar, wind and biofuel technologies. To learn more about Danfoss A/S, please visit http://www.danfoss.com/OtherSites/NAdirect/group+global.

About Dantherm A/S

Dantherm A/S (NASDAQ OMX Copenhagen: DANTH) is, in addition a shareholder in Dantherm Power, parent company of the two business divisions: Dantherm Air Handling and Dantherm Filtration. Dantherm A/S has factories and sales companies in a number of European countries, the USA and Asia and offers products, solutions and services based on the mission - clean air for people. Dantherm Air Handling has a broad range of products for electronics cooling for the telecom industry, industrial and residential ventilation, dehumidification and heating/cooling. Dantherm Filtration is a leading worldwide supplier of industrial air filtration products, solutions and services to a wide range of industries. To learn more about Dantherm A/S, please visit www.dantherm.com.

About Ballard Power Systems

Ballard Power Systems (TSX: BLD; NASDAQ: BLDP) provides clean energy fuel cell products enabling optimized power systems for a range of applications. To learn more about Ballard, please visit www.ballard.com

This release contains forward-looking statements regarding the adoption of Ballard's products, which are provided to enable external stakeholders to understand Ballard's expectations as at the date of this release and may not be appropriate for other purposes. These forward-looking statements are based on the beliefs and assumptions of Ballard's management and reflect

Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such assumptions relate to Ballard's expectations regarding product development efforts and market demand.

These statements involve risks and uncertainties that may cause Ballard's actual results to be materially different, including, without limitation, the condition of the global economy, the rate of mass adoption of its products, product development delays, changing environmental regulations, its ability to attract and retain business partners and customers, its access to funding, increased competition, its ability to protect its intellectual property, changes in its customers' requirements, foreign exchange impacts on its net monetary assets and its ability to provide the capital required for product development, operations and marketing. For a detailed discussion of these risk factors and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form.

Readers should not place undue reliance on Ballard's forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward looking statements, other than as required under applicable legislation.

For further information: Ballard Investor Relations: Lori Rozali, (604) 412-3195, [email protected]; Ballard Public Relations: Guy McAree, (604) 412-7919, [email protected]

SOURCE Ballard Power Systems Inc.