Ballard Sells U.S. Material Products Division

                Ballard Sells U.S. Material Products Division

PR Newswire

VANCOUVER, Jan. 31, 2013

  *Sale of non-core asset for up to $12M fortifies balance sheet

VANCOUVER, Jan. 31, 2013 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP)
(TSX: BLD) has announced the closing of an agreement to sell the Company's
Material Products division, located in Lowell, MA for up to $12 million. Of
this amount, $10.5 million was paid to Ballard in cash on closing, with the
remainder payable on the basis of 2013 financial results associated with the
Material Products division.

Substantially all the assets of the Material Products division were purchased
by investment group ALY Holdings LLC in partnership with the division's senior
management, through AvCarb LLC, a new company formed as a result of the

Tony Guglielmin, Ballard's CFO said, "The Material Products division is a
non-core asset, with the majority of its sales generated in industrial
sectors, not related to fuel cells. This asset sale benefits Ballard by
fortifying our balance sheet with additional cash reserves. We believe this
transaction represents the best outcome in terms of sale proceeds and
continuity of supply, with no shareholder dilution. As well, the sale enables
a singular focus on our higher growth fuel cell product markets."

Ballard's fuel cell product revenue has experienced significant growth in
recent years, led by applications in telecom backup power and material
handling. Sales in these markets have led to a 30% annual revenue growth rate
over the past 3-year period for the Company's fuel cell products.

Roger Masse, President of AvCarb LLC said, "We are excited by the opportunity
this transaction creates for our company and our employees. We will focus on
serving our customers' evolving needs for engineered carbon materials, while
continuing to support fuel cell customers, including Ballard, with advanced
GDL material. The experience and philosophy of the ALY Holdings team is also a
great fit with our management group and with the business."

In addition to the manufacture of carbon friction materials for various
industrial applications, AvCarb LLC also manufactures gas diffusion layer
(GDL) material used in the production of hydrogen fuel cells. Under a supply
agreement, AvCarb LLC will continue to make GDL material available to Ballard
for use in the Company's fuel cell products.

BMO Capital Markets acted as exclusive financial advisor to Ballard throughout
the divestiture process.

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.
Products deliver incomparable performance, durability and versatility. To
learn more about Ballard, please visit

About AvCarb LLC
AvCarb is a leading supplier of specialty engineered carbon materials for fuel
cells and other industrial applications. To learn more about AvCarb, please

This release contains forward-looking statements concerning the benefits of
this sale to Ballard and its shareholders. These forward-looking statements
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. Any such forward-looking statements are
based on Ballard's assumptions relating to its financial forecasts and
expectations regarding its product development efforts, manufacturing
capacity, and market demand and include the Company's expectations regarding
the potential benefits of the proposed transaction and the timing and success
of future product development efforts.

These statements involve risks and uncertainties that may cause Ballard's
actual results to be materially different, including general economic and
regulatory changes, detrimental reliance on third parties, successfully
achieving our business plans and achieving and sustaining profitability. For a
detailed discussion of these 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.

Contact: Guy McAree +1.604.412.7919,

SOURCE Ballard Power Systems Inc.


Contact: Guy McAree +1.604.412.7919,
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