Capstone Receives Another Follow-On Order From Large Australian Coal Seam Gas Company

CHATSWORTH, Calif., Jan. 23, 2013 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it received another follow-on order from a large Australian coal seam gas company. The initial order in July 2008 was for the supply of 110 C30 microturbines, which was later increased to 154 C30's in 2009. The first follow-on order was for 44 C30 microturbines in October 2012. The majority of these units were shipped in November and December 2012. The latest order is for 36 units increasing the total number of units sold to date to 234 C30 microturbines. These orders are part of a periodical supply contract for the life of the project, at least five years, received from Capstone's Australian distributor, Aquatec-Maxcon Pty Ltd.

In Australia, coal seam gas is plentiful. Coal seam gas has been known about ever since the coal mining industry began in Australia in the early 1900s. With advances in technology, it has developed into a key transition fuel, helping to lower Australia's carbon emissions as they move to a lower carbon future. Coal seam gas now makes up a significant proportion of Australia's natural gas supply.

Aquatec-Maxcon is Australia's leading provider of water and wastewater technology and equipment. The C30 microturbines are supplied as integrated packaged systems by Aquatec-Maxcon for use in remote coal seam gas exploration and production wells in the Australian Queensland (QLD) outback.

"Aquatec-Maxcon is proud to support what is quickly becoming the largest C30 fleet in the world," stated Ivan Reolon, Aquatec-Maxcon's National Manager of Sales and Marketing. "This second contract is for an additional supply of possibly hundreds more Capstone C30 microturbines over a five year period. This latest order from this new contract is for 36 C30 microturbines, which are scheduled to be shipped to Aquatec-Maxcon for packaging early this year as the pace of drilling and installations appears to be increasing in QLD, and with the possibility of others adopting Capstone technology in QLD coal seam gas and the coal seam gas market to kick off in New South Wales," added Reolon.

"This is another significant order by this major coal seam gas producer, which brings their total fleet up to 234 units providing reliable low emission electricity twenty-four hours a day, seven days a week, in a harsh and remote part of the world," said Jim Crouse, Capstone's Executive Vice President of Sales and Marketing.

"Until the global economy strengthens, the oil and gas market will continue to be our fastest growing market and currently accounts for over 60% of product revenue," said Darren Jamison, Capstone's President and Chief Executive Officer. "Capstone continues to see strong repeat business from global oil and gas producers in the U.S., Russia, Asia, Australia, Canada and South America," added Jamison.

Coal seam gas in Australia is used to fuel power stations that generate electricity to supply major industrial customers, homes and businesses. Coal seam gas is forming the basis of a major new liquefied natural gas (LNG) export industry that is expected to deliver substantial economic benefits to Australia and create many thousands of jobs.

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 6,500 Capstone Microturbine 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.

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This press release contains "forward-looking statements," as that term is used in the federal securities laws, about the advantages of our products, growth of the oil and gas market and increased opportunities in the Australian coal seam gas industry. 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" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

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Released January 23, 2013