Capstone Ships Its First C1000 Megawatt Scale Product

CHATSWORTH, Calif.-- Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced it has shipped its first C1000 megawatt scale product. The system will be installed at ANTEX (Angles Textil S.A.), www.antex.es, located in Spain.

ANTEX is an independent Spanish textile group whose activity centers on the broad world of synthetic yarns. It has eight industrial plants in Spain and one in Brazil. In the past, ANTEX had installed a cogeneration system using a reciprocating engine running on heavy fuel. Capstone's C1000 system will run on Liquid Natural Gas (LNG). The customer will utilize the electrical power and usable exhaust heat to produce steam and hot water which will be used in the industrial process. This project will showcase the new C1000's advantages such as modularity, reliability, part load efficiency, lower maintenance costs, ease of installation, and smaller footprint versus traditional reciprocating engines.

The ANTEX project was developed by DISTEC, a company based in Girona, Spain, under the umbrella of "Micropower Europe." Micropower Europe is a network created by Verdesis Suisse SA, with headquarters in Switzerland, of various European companies specializing in the development, marketing, application, sales and servicing expertise in the power generation industry using Capstone MicroTurbines(R). For the Spanish and Austrian/Swiss markets, the network is represented by the Barcelona-based Micropower Europe S.L.

"Shipping our first C1000 system is a major accomplishment enabling Capstone to enter the megawatt scale marketplace," said Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "We continue to be very impressed with the early market acceptance of the C200 and the C1000 family of products. As of the end of our second quarter of fiscal year 2009, we had 49 C200's and 29 C1000's in backlog totaling 187 equivalent C200 engines," added Jamison.

Commenting on this project, Verdesis Suisse SA's President and Chief Executive Officer, Beat Naef, said, "Since 2004 we have installed Capstone microturbines in more than 50 projects. With Capstone's new megawatt solution we are able to enter a new business segment, of larger industrial clients with higher energy requirements."

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 and ISO 14001:2004 certified company; Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New Jersey, 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 for its C200 family of products, including the C1000, the advantages of the C1000 product and entry into new market segments. 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 5, 2009