Ballard Signs Long-Term Engineering Services Contract To Advance Volkswagen AG Fuel Cell Automotive Research Program

Ballard Signs Long-Term Engineering Services Contract To Advance Volkswagen AG
                    Fuel Cell Automotive Research Program

PR Newswire

VANCOUVER, March 6, 2013

  *Expected contract value of C$60-100 million

VANCOUVER, March 6, 2013 /PRNewswire/ - Ballard Power Systems (NASDAQ:
BLDP)(TSX: BLD) has announced signing of an agreement with Volkswagen Group
(www.volkswagenag.com) for a major Engineering Services contract to advance
development of fuel cells for use in powering demonstration cars in
Volkswagen's fuel cell automotive research program. The contract term is for
4-years, with an option for a 2-year extension. The expected contract value is
in the range of C$60-100 million.

Dr. Juergen Leohold, Head of Group Research at Volkswagen AG said, "This
research agreement with Ballard demonstrates our commitment to the development
of clean energy fuel cell transportation alternatives. I anticipate
accelerating our automotive fuel cell program as a result of this
collaborative effort, which will bring together additional fuel cell skills
and expertise in both organizations."

Work will involve the design and manufacture of a next-generation fuel cell
for use in Volkswagen HyMotion demonstration cars. Ballard engineers will lead
critical areas of fuel cell product design - including the membrane electrode
assembly (MEA), plate and stack components - along with testing and
integration work.

"The announcement of this research agreement with Volkswagen Group, a
recognized global leader, is a major step for Ballard both strategically and
financially," said John Sheridan, Ballard President and CEO. "It represents a
tremendous ramp-up in our Engineering Services business following the recent
expiration of the five year automotive non-compete agreement. Ballard's focus
with Volkswagen in this new automotive fuel cell research program will
parallel our continuing work in commercial fuel cell markets for backup power
and material handling — enhancing product durability and performance while
radically reducing product costs."

Over the past several years, Ballard has made significant advances in its
commercial fuel cell products, with average product cost reductions of 60% and
increases in product durability. Sales of Ballard's clean energy fuel cell
products have also been accelerating, with a 30% cumulative annual growth rate
(CAGR) in revenue since 2010.

Additional details regarding the agreement between Ballard and Volkswagen will
be filed by Ballard in a Material Change Report which will be available on
SEDAR at www.sedar.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.
Products deliver incomparable performance, durability and versatility. To
learn more about Ballard, please visit www.ballard.com.

This release contains forward-looking statements concerning revenues, product
development activities, anticipated product improvements and cost reductions.
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.

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.

Guy McAree +1.604.412.7919,media@ballard.com orinvestors@ballard.com

SOURCE Ballard Power Systems Inc.

Contact:

Guy McAree +1.604.412.7919,media@ballard.com orinvestors@ballard.com
 
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