Horizon Secures Three Megawatt Order for C1000 Power Packages

December 2010 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, has received an order for three C1000 Power Packages for a large independent oil-and-gas exploration and production company in the Eagle Ford Shale play in South Texas.

Capstone distributor Pumps & Service (Horizon Power Systems*), which secured the order, expects the customer will order additional C1000 turbines in the near future. Today’s announcement is the fourth order Pumps & Service has received this year from large oil-and-gas companies targeting significant shale reserves in the United States.

“We’re seeing ever-increasing interest in Capstone products in the oil-and-gas market and have added additional resources to respond to the growing demand,” said Sam Henry, Pumps & Service President. “We’re expecting to announce follow-on orders in the near future as this oil-and-gas producer recognizes the advantages of Capstone microturbines to produce several megawatts of reliable power.”

The C1000 Power Packages together will provide three megawatts of clean-and-green prime power to central processing facilities and metering stations at remote well sites in the Eagle Ford Shale play. The microturbines, fueled by pipeline quality gas, will produce electricity to provide all power to the onsite equipment, including heaters, pump motors, circulation pumps and distribution panels.

“The growth in the shale play market is driving increased domestic demand for Capstone microturbines,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “Oil producers are required to meet stringent EPA air-permitting requirements and they’re looking to Capstone microturbines as the means to meet those tough requirements.”

“The recovery of oil and gas requires reliable technologies with attention to environmental protection,” said Bryan Hensley, Pumps & Service Vice President of Sales and Marketing. “Capstone turbines can operate completely off the grid and use high pressure natural gas from the pipeline as fuel, which makes oil and gas sites self-sufficient.”

*NOTE: In November 2010, the business segment of Pumps and Service responsible for sales and service of Capstone microturbines changed its name to Horizon Power Systems.