The program has two objectives:

1. Cost reduction: Ballard will engage in technology and product development activities to further reduce the cost of its Mark9 SSL(TM) fuel cell product, which is designed primarily for the materials handling market.

2. Development and Demonstration Program: The effort will also support a field trial program to demonstrate and validate the value proposition for fuel cells in a large, high-throughput distribution center environment in Michigan. Cellex Power Products, one of Ballard's lead customers in this market, which is being acquired by Plug Power, will receive approximately half the contract value to implement a 40 unit commercial trial of its fuel cell power units (using Ballard's Mark9 SSL(TM) fuel cell) for class 3 lift truck applications.

"Cost reduction is a key factor in making fuel cell technology commercially viable in the materials handling market," said Noordin Nanji, Ballard's Vice President and Chief Customer Officer. "The support being provided through the DoD for cost reduction activities, as well as for real-world demonstrations, is a great example of tangible government investment in the hydrogen and fuel cell sector."

About Ballard Power Systems

Ballard Power Systems (Toronto:BLD.TO - News)(NasdaqGM:BLDP - News) is recognizedd 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 www.ballard.com.