$500M Public Offering by Ballard Power Systems

Ballard Power Systems Inc. (Ballard) announced on March 2, 2000 the closing of its public offer of 3,245,000 shares of its common stock at $153.84 per share for proceeds of approximately $499.2 million. The offering was made in Canada, the United States and Europe. A further announcement was made on March 3, 2000 that an underwriting group, led by Morgan Stanley Dean Witter, and co-managed by BMO Nesbitt Burns Inc., Credit Suisse First Boston, Goldman, Sachs & Co., Merrill Lynch & Co., and Goepel McDermid Inc., will purchase an additional 48,750 shares of its common stock at the same price pursuant to the exercise of an over-allotment option.

Ballard is recognized as the world leader in proton exchange membrane fuel cell technology, and its principal business is the development and commercialization of proton exchange membrane fuel cells and fuel cell systems for use in automotive, stationary power and portable applications. The capital raised from the offering is intended to be used across a wide range of the company’s affairs, including commercialization programs with strategic partners, research and product development for transportation, stationary and portable power applications (including Ballard’s new portable power and low power stationary programs), and the development of manufacturing processes (including establishing Plant 1, Ballard’s initial commercial manufacturing facility).

Canadian counsel to Ballard was Lang Michener Lawrence & Shaw with a team made up of John E. Stark, Leo Raffin, Stephen Wortley, Charlotte Olsen and Garth Stevens. Ballard’s US counsel was Cravath, Swaine & Moore, represented by John T. Gaffney, David Armstrong and Ronen Elad. Borden Ladner Gervais LLP, represented by Fred R. Pletcher and John McLeod, acted as Canadian counsel for the underwriters. Shearman & Sterling, represented by Bruce Czachor, Jason Lehner and Dimitri Handera, acted as US counsel for the underwriters.