DaimlerChrysler AG, BP , BASF, Methanex Corporation, Statoil and XCELLSIS have entered into a co-operation agreement to evaluate what would be needed to facilitate the introduction and commercialization of methanol fuel cell vehicles. The goal is to establish a joint position after examining any health, safety, environmental and infrastructure issues associated with the use and introduction of methanol fuel cell vehicles. This position will be documented and published for the benefit of all fuel cell industry stakeholders. The parties also expect to implement their findings in a real world application in the near future.

Each partner brings extensive know-how in working with methanol into the co-operation: BP, Methanex, Statoil have experience in methanol production and distribution. BP and Statoil will also contribute their competence in fuel retailing. BASF as a leading catalyst company will contribute its expertise in innovative catalyst technology which is crucial for using methanol in fuel cells as well as its wide ranged knowledge about the handling and processing of methanol. As leaders in methanol fuel cell vehicle development, DaimlerChrysler and XCELLSIS will provide expertise on this promising vehicle technology.

Fuel cells are considered to be the alternative drive system with the greatest potential for the future. They are quiet and offer extremely low or even zero emissions combined with excellent energy efficiency.

"The fuel cell drive will guide us to the age of sustainable mobility," Prof. Dr. Ferdinand Panik, head of DaimlerChrysler fuel cell project and CEO of XCELLSIS, pointed out. "Within the widely discussed question whether hydrogen or methanol is the right fuel for fuel cells we bet on methanol for passenger cars. XCELLSIS has developed a very compact fuel processor for cars. Moreover, today's distribution system can be adjusted in a cost effective way to accommodate methanol, including the future option of production from renewables. In a strong alliance we are now heading for the market entry of this technology."

BP's Senior Advisor Transportation and Fuels, Peter Histon said: "Many people within the industry have strong views around the viability of methanol as a transport fuel. We believe that many of the most extreme concerns around the use of methanol as a transport fuel are unfounded, and this study will help demystify the issue of methanol as a fuel for fuel cell vehicles. It will allow us to make well-informed decisions about the potential use of methanol as a transport fuel and help us shape our overall thoughts around the future role methanol may have within BP.'

In a joint statement, Pierre Choquette (President and CEO of Methanex) and Mr. Finn Kulas (Senior Vice President of Statoil) commented, "By combining our resources and expertise, we expect to make significant progress toward the safe introduction of methanol as a fuel for fuel cell applications. This could lead to significant new markets for methanol, a clean natural gas based fuel, in the transportation sector as well as for stationary power generation."

Dr. Dieter Degner, Head of BASF Research Division Ammonia Laboratory, pointed out: "Our extensive know-how in high-performance catalysts enabled us to develop an innovative technology in co-operation with XCELLSIS which allows using methanol as a low-priced fuel for fuel cell cars. Methanol offers the opportunity to introduce fuel cells quickly as an alternative and environmentally friendly drive system for passenger vehicles."

Methanex is the world's largest producer and marketer of methanol. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the Nasdaq National Market in the United States under the trading symbol "MEOH." Methanex can be visited at www.methanex.com.

Information in this news release may contain forward-looking statements. By their nature, such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. They include the ability of the parties to carry out their intended studies, the successful introduction and commercialization of fuel cell vehicles and the use of methanol in such vehicles.