Exhibit 99.1

          Capstone Turbine Announces C-200 Beta Testing Plans

   CHATSWORTH, Calif.--(BUSINESS WIRE)--Jan. 7, 2004--Capstone
Turbine Corporation (www.microturbine.com) (Nasdaq:CPST) announced
today that it is in the final stages of development of its C-200
microturbine and plans beta testing of the new product to begin in the
first quarter of its fiscal year, which begins April 1.
   "We are pleased at the progress we are making on the C-200
development," said John Tucker, Capstone's CEO. "We anticipate that in
our third fiscal quarter, based on the results of the beta testing, we
will describe our expected plans for the launch of the C-200."

   About Capstone Turbine

   Capstone Turbine Corporation (www.microturbine.com) (Nasdaq:CPST)
is the world's leading producer of low-emission microturbine systems.
In 1998, Capstone was the first to offer commercial energy products
utilizing microturbine technology, the result of more than ten years
of focused research. Capstone Turbine has sold and shipped more than
2,500 Capstone MicroTurbine systems to customers worldwide. These
award-winning systems have logged more than 5 million hours of
documented operation.

   This press release contains "forward-looking statements," as that
term is used in the federal securities laws, about Capstone's
business, with regard to the company's expected timing of C-200
development and launch schedules. These forward-looking statements are
subject to numerous assumptions, risks and uncertainties that may
cause Capstone's actual results to be materially different from any
future results expressed or implied in such statements. Such factors
include, but are not limited to Capstone's ability to progress to the
beta testing phase as anticipated, the progress of the beta testing
phase to permit describing expected product launch plans as
anticipated, and other factors detailed in the Company's filings with
the Securities and Exchange Commission. Capstone cautions readers not
to place undue reliance on these statements, which speak only as of
the date of this release. Capstone undertakes no obligation, and
specifically disclaims any obligation, to release any revisions to any
forward-looking statements to reflect events or circumstances after
the date of this release or to reflect the occurrence of unanticipated
events.
   "Capstone Turbine Corp" is a registered trademark of Capstone
Turbine Corporation.

    CONTACT: Capstone Turbine Corporation
             General Media Inquiries:
             Keith Field, 818-734-5465
               or
             Investor and Investment Media Inquiries:
             Alice Barsoomian, 818-734-5428