Capstone Turbine Announces Initial $3.8 Million Order for Its C200 Microturbine

CHATSWORTH, Calif.--

Capstone Turbine Corporation (www.microturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced an initial order for $3.8 million of C200 microturbine systems for biogas applications from Greenvironment Oy, its distributor in Finland and Germany.

Greenvironment's order specifies deliveries beginning in September 2008 and completion of the order no later than December 2009. Capstone will add $0.6 million to its backlog in September initially for the portion of the order that is within one year of delivery and the remainder of the order incrementally as it falls within one year.

Founded in 2002 in Finland, Greenvironment has been a leader in clean and green technologies using biogas-fueled microturbines. In early 2006, it expanded into Germany with a subsidiary located in Berlin. In June 2007, in the presence of 150 invited guests from industry, government and media, Greenvironment commissioned its first commercial microturbine power plant in Germany, utilizing a digester.

"Because of its innovative technology and its unique business plan, CNBC Europe placed Greenvironment on its list of the Top 50 Low-Carbon Pioneers," said Tony Hynes, Vice President, Sales, Europe, the Middle East and Africa. "This order reinforces their confidence in our systems' reliability and low emissions profile on biogas fuels," added Hynes.

"Europe is currently a successful market for us, and this order for our C200 product will enable further market penetration," said Darren Jamison, President and CEO of Capstone Turbine Corporation. "We have been very impressed with Greenvironment's team of dedicated experts in all aspects of engineering, marketing, and project management, and their focus of providing outstanding support to their customers," added Jamison. "We are looking forward to a continued successful relationship between our two companies."

Commenting on the new order, Greenvironment Oy's Managing Director, Matti Malkamaki said, "We have been impressed by Capstone Turbine's leadership in clean and green microturbine technology and as a manufacturer of proven and reliable equipment, and we believe that there will be a growing demand for C200 microturbine systems in various biogas applications in the future."

The 200-kilowatt system is the latest generation MicroTurbine(R) being developed by Capstone. "In addition to a net power output of 200 kilowatts, the C200 will provide the same technology advantages as our previous microturbines as well as multiple unit paralleling capability to powering applications up to 2 megawatts, with the highest electrical efficiency of the Capstone MicroTurbine product family," said Jim Crouse, Executive Vice President, Sales & Marketing.

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 four thousand units of 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, Nottingham, 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 particular, with the sale of the C200 microturbine system for biogas applications in Europe, a continued successful relationship between Capstone and Greenvironment, and the technology advances and electrical efficiency of the C200 system. 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 October 2, 2007