• Methanol system offering expands Ballard’s markets for extended run
  time, clean fuel cell power solutions

VANCOUVER, July 26, 2012 /PRNewswire/ – Ballard Power Systems (NASDAQ:
BLDP)(TSX: BLD) today announced signing of an agreement to acquire key
assets from IdaTech, including the Company’s fuel cell product lines
for backup power applications, distributor and customer relationships,
as well as a license to intellectual property. Payment for the
acquisition of these assets will be made through the issuance of $7.7
million of Ballard common shares, at a price of US$1.08 per share. The
shares will subsequently be transferred to IdaTech’s principal funder,
Investec, a South African specialist bank and asset management company
(www.investec.com). The transaction is expected to close on or about July 31, subject to
TSX approval and other closing conditions.

Ballard has worked closely with IdaTech over the past several years,
supplying fuel cell stacks for its systems, as IdaTech has developed
markets, built key customer relationships and proven the commercial
robustness of its direct hydrogen and methanol fuelled products.
IdaTech’s methanol fuelled product line has proven its strong value
proposition to customers such as AXIS in Indonesia, Telcel in Mexico
and Vodacom in South Africa. These markets, which require frequent and
extended run time backup power, have seen a strong preference by
IdaTech’s customers for deployments of methanol fuel cell systems to
replace traditional diesel generators.

John Sheridan, Ballard President and CEO said, “This transaction gives
Ballard key benefits immediately, both financial and strategic.
Financially, the transaction is expected to be accretive for Ballard’s
revenue, EBITDA and cash flow in 2012 and beyond. Strategically, it
provides Ballard with additional product capabilities with methanol
fuelled systems and key customer relationships in leading markets for
fuel cell commercialization, such as Southeast Asia, the Caribbean and
Latin America as well as South Africa.”

South Africa is a market of special interest for fuel cell
commercialization. Ballard has already delivered fuel cell systems to
Anglo American Platinum Limited for demonstration in large scale backup
power and mining locomotive applications. In addition, Ballard is
working with Anglo American on development of a fuel cell home
generator. And, following this asset purchase, Ballard will be working
with existing IdaTech customers in South Africa, with whom more than
150 systems have already been deployed.

Investec has agreed to hold the majority of the Ballard shares issued
under the transaction for a minimum period of 12 months, demonstrating
its continuing support for the commercialization of fuel cells, with
particular interest in South Africa, where Investec is a high profile
and leading financial institution with a commitment to transformation
initiatives.

Stephen Koseff, Investec Group CEO said, “Sustainability for Investec is
about endurance and the interdependence of the three key areas of
profit, people and planet. This transaction clearly aligns with that
philosophy. And, we are excited to be directly involved with a market
leader in Ballard, the fuel cell company best positioned to work with
existing customers and to expand the base of installed fuel cell
systems.”

The common shares to be issued in the proposed transaction have not been
registered under the Securities Act, or applicable state securities
laws, and accordingly may not be offered or sold in the United States
except pursuant to an effective registration statement or an applicable
exemption from the registration requirements of the Securities Act and
such applicable state securities laws.

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 the
financial and strategic benefits of the transaction. 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, investors@ballard.com or media@ballard.com

SOURCE Ballard Power Systems Inc.