Ballard Announces Follow-On Supply Agreement With General Hydrogen Corporation

Ballard Announces Follow-On Supply Agreement With General Hydrogen
Corporation

Publication Date:10-October-2006
06:30 PM US Eastern Timezone
Source:FuelCellWorks

Contract valued at approximately US$22 Million
2,900 Mark 9 SSL'TM' fuel cells to ship in 2007 and 2008 VANCOUVER,
BRITISH COLUMBIA--Ballard Power Systems (TSX:BLD)(NASDAQ:BLDP) today
announced that it has signed an agreement valued at approximately US$22
Million with General Hydrogen Corporation to supply 2,900 Mark 9 SSLTM
fuel cells. These fuel cells are for integration into General
Hydrogen's products that are being sold to customers converting from
conventional lead-acid batteries in their materials handling fleets.
Under the agreement, Ballard expects to ship fuel cells ranging in size
from 4 to 20 kilowatts, with roughly one-quarter of these units to ship
in 2007, and the balance to ship in 2008. This year, through September
30, 2006, Ballard has shipped 100 Mark 9 SSLTM fuel cells. This
agreement reflects the growing confidence of Ballard and General
Hydrogen in the potential for fuel cell products in the materials
handling equipment market. With this agreement, Ballard has exceeded
its publicly stated corporate goal of shipping or booking 300 Mark 9
SSLTM units in 2006.

"General Hydrogen is a key leader in commercializing fuel cells in the
materials handling equipment market. Our Mark 9 SSLTM product has been
performing exceptionally well in equipment sold and delivered by
General Hydrogen to fuel cell forklift customers. End-users are
reporting strong satisfaction with durability and performance," said
Noordin Nanji, Ballard's Chief Customer Officer. "This follow-on order
from General Hydrogen reflects end-user confidence in our ability to
meet market needs in terms of product cost, reliability and supply as
this market develops."

Fuel cells offer a compelling value proposition to electric forklift
operators, delivering a number of important advantages over a
conventional lead-acid battery solution:

- General Hydrogen's Hydricity® Pack provides triple the run time of
lead-acid batteries, eliminating battery changing and charging and
thereby increasing productivity.

- Warehouse and factory capacity set aside for battery storage and
charging is freed up providing more space for a customer's normal
business activity.

- Fuel cells provide constant power throughout a shift, unlike
lead-acid batteries, resulting in further productivity improvements.

"We are very pleased to continue our supply arrangement with Ballard,"
said Frank Trotter, General Hydrogen's President and Chief Executive
Officer. "Ballard has been very aggressive in driving down its
product cost and improving its manufacturing capability. The quality
of Ballard's technology remains unmatched. Integration of the Ballard®
fuel cell as a key component in General Hydrogen's Hydricity® Pack
provides a product solution that meets the requirements for
performance, durability and reliability in the very demanding operating
environments of today's forklift users. This agreement gives us
security of supply with a continued focus on cost reduction that will
ensure we can address our customers' needs as this market continues to
develop over the next two years."

About Ballard Power Systems

Ballard Power Systems (TSX:BLD)(NASDAQ:BLDP) is recognized as a world
leader in the design, development and manufacture of zero-emission
proton exchange membrane fuel cells. Ballard's mission is to make fuel
cells a commercial reality. To learn more about what Ballard is doing
with Power to Change the World®, visit http://www.ballard.com.

About General Hydrogen

General Hydrogen Corporation has its headquarters in Richmond, BC,
Canada and has sales and service centers in Gallatin, TN and
Cincinnati, OH. General Hydrogen has developed and commercialized fuel
cell power packs and hydrogen refueling stations for a variety of
industrial electric vehicles, including forklifts. General Hydrogen's
website is located at http://www.generalhydrogen.com.


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