Capstone Turbine Announces Shipment of Its First C200 Production Unit Ahead of Schedule

CHATSWORTH, Calif.--

Capstone Turbine Corporation (NASDAQ:CPST) (www.microturbine.com), the world's leading clean technology manufacturer of microturbine energy systems, announced that it will ship its first C200 production unit today. Originally scheduled for shipment in late September, Capstone was able to deliver this first unit earlier than planned. This first production unit is shipping to Integrated Building Technologies (IBT) S.R.L., the company's distributor in Italy. The system will be installed in a wastewater treatment facility in Biella, Italy, and will operate on methane gas generated from the digesters at the facility.

"Interest in Capstone's C200 product has been very strong as illustrated by the 67 C200 units and 55 C200 equivalent units in C1000 series product in backlog at the end of the last quarter," said Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "Management originally planned on building 28 C200 systems in calendar year 2008. We later revised that number to 48 C200 systems before the end of calendar year 2008," added Jamison.

"Reflective of our commitment to continuously develop and build high quality products, we were very pleased at how the first C200 unit came together and successfully passed the manufacturing acceptance test procedure," said Mark Gilbreth, Executive Vice President and Chief Technology Officer. "The second production C200 is scheduled for shipment to UTC Power Corporation for integration with their Carrier double effect absorption chiller," added Gilbreth.

About Capstone Turbine Corporation

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, Bath, Shanghai and Tokyo.

This press release contains "forward-looking statements," as that term is used in the federal securities laws, about Capstone's plans for accelerating shipment of its C200 units. 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.

Source: Capstone Turbine Corporation

Released August 28, 2008