Capstone Announces Launch of Ultra Low Emissions Product to Operate on Digester and Landfill Gas

CHATSWORTH, Calif.--

Capstone Turbine Corporation (www.microturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced that it released configurations of the C65 kilowatt microturbine that meets extremely low global emission requirements including California's stringent waste gas emissions standard.

A study performed by the United States Environmental Protection Agency (EPA) Landfill Methane Outreach Program (LMOP) has identified over 570 candidate sites in the United States alone with potential capacity for 1,370MW and approximately 16 million metric tons of carbon equivalent (MMTCE) potential emissions reductions. Methane gas has 23 times the Global Warming Potential of an equal mass of carbon dioxide. These environmental impacts equate to planting nearly 20,000,000 acres of forest, preventing the use of nearly 170,000,000 barrels of oil, or removing 14,000,000 vehicles from our roads, based on EPA emissions and efficiency data for the average US power plant and average passenger vehicle.

Landfills, in addition to digesters and coal bed methane, are key market verticals for our C65 Landfill and Digester resource recovery products. Producing energy using gas from these applications avoids the need to use non-renewable resources such as coal, oil, or natural gas to produce the same amount of energy.

Certification to the new waste fuel emissions standard by the California Air Resources Board (CARB) makes approved technologies such as the Capstone Landfill and Digester Microturbines much easier to site in California - often avoiding any local air permitting at all. Capstone microturbines are the first power generation technology to receive CARB approval for operation on waste fuels such as landfill and digester gas.

Capstone microturbines are capable of burning waste gases with methane contents as low as 30% which can be challenging for competing combustion technologies. The CARB waste gas emissions requirements are achieved with Capstone's low premix combustion technology inherent to the microturbine and require no exhaust after treatment.

"California landfills and digesters are a market opportunity for the Capstone microturbine product," said Jim Crouse, Capstone's Executive Vice President of Sales and Marketing. "We are excited to offer our customers a product that is accepted by the state of California and supports sustainability initiatives."

"Resource recovery applications are a core part of Capstone's business as countries continue to implement renewable standards," said Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "The ability to provide clean burning power generation helps meet California requirements today and sets the standard for other nations as they establish emissions requirements," added Jamison.

About Capstone Turbine

Capstone Turbine Corporation (www.microturbine.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 4,000 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 9001:2000 certified company; Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New York, Mexico City, Milan, Bath, Shanghai and Tokyo.

"Capstone Turbine Corporation" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

This press release contains "forward-looking statements," as that term is used in the federal securities laws, about new sales opportunities for Capstone in resource recovery applications in California and elsewhere and the environmental advantages of our product. 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.

Source: Capstone Turbine Corporation

Released January 28, 2008