Capstone Signs First C1000 Factory Protection Plan Pushing Long Term Service Backlog Over $11 Million

CHATSWORTH, Calif., June 9, 2009 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced that it has signed a contract for its first C1000 long term Factory Protection Plan (FPP) for three C1000 systems recently shipped to Aquatec-Maxcon Pty Ltd, its distributor for the Australian market. The three unit order will soon be installed at a major coal seam gas producer in a reverse osmosis water system application.

This C1000 FPP contract is valued in excess of $2 million dollars over a 10 year period. This latest contract pushed the total FPP backlog over $11 million dollars as of May 31, 2009. Capstone launched the FPP program approximately two years ago to improve the reliability and service of its microturbine solutions. Typical FPP service contracts vary in length from a minimum of one year to a maximum of 11 years with most FPP contracts covering between five and nine years. Customer payments are generally received quarterly in advance over the term of the FPP.

"This latest contract puts the total number of C30, C65, C200 and C1000 Series microturbines under FPP contracts in excess of 400 units as of May 31, 2009," said Shelby Ahmann, Capstone's Senior Vice President of Customer Service. "Capstone's goal is to get as many new C200 and C1000 Series products as possible into the Factory Protection Program to guarantee product performance and system reliability," added Ahmann.

"This first C1000 FPP contract is the kilowatt equivalent of putting 100 C30's under an FPP contract, and I am pleased with the customer response to our new C200 and C1000 Series products as we look to have as many units under FPP as possible," stated Capstone's President and Chief Executive Officer, Darren Jamison. "The benefit of Capstone's FPP program is that customers can plan for product life cycle costs and obtain optimum product performance from scheduled maintenance performed by trained technicians," added Jamison.

The C1000 is a robust one megawatt power system, containing five Capstone C200 microturbine engines. It is configured in a single compact ISO size container and provides the same low emissions, low noise and extended maintenance benefits of Capstone's C30 and C65 Series products.

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 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 is headquartered in the Los Angeles area with sales and/or service centers in the New York metro area, Mexico City, Nottingham, Shanghai, Singapore and Tokyo.

The Capstone Turbine Corporation logo is available at https://www.globenewswire.com/newsroom/prs/?pkgid=6212

This press release contains "forward-looking statements," as that term is used in the federal securities laws, about our Factory Protections Plan and the advantages of our products. 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.

CONTACT:  Capstone Turbine Corp.
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Released June 9, 2009