Capstone Distributor BPC Engineering Installs First Two C1000s on Associated Gas in Russia

CHATSWORTH, Calif., May 31, 2011 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean-technology manufacturer of microturbine energy systems, today announced its Russian distributor BPC Engineering successfully installed and commissioned its first two C1000s on associated gas at the Eastern-Sotchemyu-Talyu oil field in Russia.

BPC Engineering engineered, installed and recently successfully commissioned the two C1000 series units operating on associated gas at the Eastern-Sotchemyu-Talyu oil field (the Komi Republic). The objective of the project is to increase the level of associated gas utilization at the oil field in compliance with the Russian government's resolution and declaration to decrease atmospheric pollution from gas flaring dated January 8, 2009. Associated gas utilization for power will allow Russian Oil and Gas customers to avoid emissions penalties and to significantly reduce power costs at the oil field level. The electricity generated by two C1000 microturbines covers nearly all the energy needs of the Eastern-Sotchemyu-Talyu oil field and allows the site to use the electric grid as a backup power source for peak loads. This configuration not only increases the reliability but also decreases the cost of electricity substantially when compared with the local electric utility rates.

The 2MW microturbine power station operates in standalone mode and powers oil treatment units and oil-transfer pumps, as well as infrastructure of oil wells. The microturbines run in a fully automatic mode under control of the Capstone Advanced Power Server that distributes load between and provides highly efficient operation. This control system is equipped with the capability for remote monitoring of the microturbines via GSM modem and Capstone's call center in Chatsworth, California.

The associated gas at the oil field contains only 27% of methane and up to 1.2% of hydrogen sulfide – this is the main factor why the decision was made in the favor of Capstone microturbines that are capable of continuous work with complex gases including wet gas, gas with hydrogen sulfide content up to 7%, gas with variable composition, calorie content and pressure. The microturbines allowed the oil and gas customer to utilize gas supply directly after the separator and avoid using costly gas treatment systems.

"BPC has successfully engineered, installed and commissioned Capstone microturbines in remote sites all over Russia for years but the new government resolution to decrease atmospheric pollution from gas flaring is driving a substantial increase in demand for the Capstone C1000 Series product in Russia," said Jim Crouse, Capstone's Executive Vice President of Sales and Marketing. "BPC has been and continues to be our largest and most successful distributor," added Crouse.

About Capstone Turbine Corporation

Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST) is the world's leading producer of low-emission microturbine systems, and was the first to market commercially viable microturbine energy products. Capstone Turbine has shipped over 5,000 Capstone MicroTurbine(R) systems to customers worldwide. These award-winning systems have logged millions of documented runtime operating hours. Capstone Turbine is a member of the U.S. Environmental Protection Agency's Combined Heat and Power Partnership, which is committed to improving the efficiency of the nation's energy infrastructure and reducing emissions of pollutants and greenhouse gases. A UL-Certified ISO 9001:2008 and ISO 14001:2004 certified company, Capstone is headquartered in the Los Angeles area with sales and/or service centers in the New York Metro Area, Mexico City, Nottingham, Shanghai and Singapore.

The Capstone Turbine Corporation logo is available at https://www.globenewswire.com/newsroom/prs/?pkgid=6212

This press release contains "forward-looking statements," as that term is used in the federal securities laws, about use of our products with associated gas, reduced costs, increased reliability, compliance with government regulations, demand for our products in Russia and the success of BPC as our distributor. Forward-looking statements may be identified by words such as "expects," "objective," "intend," "targeted," "plan" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone's filings with the Securities and Exchange Commission that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. Capstone cautions readers not to place undue reliance on these forward-looking 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 Corporation" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

CONTACT: Capstone Turbine Corporation
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Released May 31, 2011