The company also confirmed its full year guidance for:

Total product shipments: 4,000 units (115% growth from 2008).

Operating cash consumption: $17 million to $27 million (7% to 40% reduction from 2008).

First Quarter Of 2009 Overview:

Total product shipments of 192 units, a decrease from 284 units in first quarter of 2008.

Shipments expected to ramp up over the back half of the year.

FCgen-1300 development program is on track for Indian market deployment.

Commissioning of BC Transit Olympic Buses proceeding on schedule for bus delivery by the consortium starting in August 2009.

Key progress in material handling, with lift truck fleet conversions by Plug Power for Central Grocers and Nestle Waters.

Organizational restructuring completed, resulting in a 7% workforce reduction with annual cost savings of around $4 million.

Appointment of Bruce Cousins as chief financial officer on April 6, 2009 and Michael Goldstein as chief commercial officer on April 27, 2009.

First Quarter Of 2009 Financial Highlights:

Product and service revenues for the core Fuel Cell Products segment of $3.9 million were consistent with the year-ago quarter.

The overall year over year quarterly reduced was primarily driven by:

The slow down in the automotive sector and its impact on Contract Automotive and Material Products revenues; and

The decline in engineering development revenues due primarily to the elimination of automotive fuel cell development work subsequent to the closing of the AFCC transaction and completion of the 1kilowatt (kW) residential cogeneration fuel cell development program, both in 2008.

Operating expenses, excluding depreciation and amortization reduced $3.4 million.

Research and product development reduced $3.8 million to $7.8 million.

Sales and marketing stood at $1.8 million.

General and Administrative increased $0.4 million to $4.3 million, which includes $1.1 million in severance expense related to the 7% workforce reduction.

Operating cash consumption was $11.0 million, a 20% increase from $9.2 million in the first quarter of 2008.

2008 net income included a $97 million gain from the sale of our automotive assets.

Normalized net loss was ($17.5) million or ($0.21) per share, ressembles a $1.6 million increase in loss from first quarter of 2008 ($15.9 million) driven by low margins and engineering development revenues, partly offset by deductions in operating expenses.

Cash reserves of $66.7 million and debt-free balance sheet.

First Quarter 2009 Financial Results:

Ballard Power’s revenues for the first quarter of 2009 reduced due mainly to the continuing slowdown in the automotive sector negatively impacting the supporting business segments. Contract Automotive and Material Products revenues were down $5.6 million due to lower shipments of light-duty automotive modules and carbon friction material products combined with the elimination of light-duty automotive fuel cell program work subsequent to the closing of the AFCC Transaction on January 31, 2008. In addition, Fuel Cell Products engineering development revenues were down $2.3 million due primarily to the completion of the 1 kW residential cogeneration fuel cell development program in the third quarter of 2008. In the core Fuel Cell Products segment, product and service revenues of $3.9 million were flat versus the year-ago quarter of $4.0 million.

The first quarter net income in 2008 included a gain on sale of assets of $96.9 million related to the AFCC Transaction. The net loss in first quarter of 2009 included severance and related costs of $1.1 million relating to a 7% workforce reduction initiated in March 2009.

Ballard Power’s normalized net loss for the first quarter of 2009 increased $1.6 million to $17.5 million, or ($0.21) per share, compared with a normalized net loss of $15.9 million, or ($0.17) per share, for 2008. Product and service revenue and related gross margin declines of $4.0 million and $1.7 million, respectively, combined with lower engineering development revenues of $3.9 million, were only partially offset by deductions in operating expenses of $4.5 million. In addition, declines in investment and other income of $1.1 million negatively impacted normalized net loss in 2009 as compared to 2008.

Operating cash consumption for the three months ended March 31, 2009 increased 20% to $11.0 million, compared to $9.2 million for the first quarter of 2008. The higher operating cash consumption in the first quarter of 2009 was driven by increased capital expenditures, a decline in investment income, low product and service gross margins and lower engineering development revenues. These increases were partly offset by low working capital needs and low operating expenses.