U.S. Oil & Gas Company Orders 30 C65s

February 2013 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, today announced that it continues to expand its presence in the Eagle Ford Shale Play with another follow-on order for 30 C65 microturbines from a U.S.-based oil and gas exploration and production company.

The oil and gas exploration and production company’s operations are located primarily in the United States with natural-gas exploration and production onshore in the lower 48 states, onshore in Alaska, and offshore in the deep waters of the Gulf of Mexico. This latest order brings their total C65 fleet to approximately 150 microturbines. Most of the C65 units were purchased by the oil and gas producer’s production division and are utilized for lease automatic custody transfer (LACT) units. In addition, the company’s mid-stream division has previously purchased seven C600s and one C800 making the company one of the largest Capstone users in North America.

Capstone distributor Horizon Power Systems secured this follow-on order to support the exploration and production company’s growing power needs in the Eagle Ford shale play.

“These multiple follow-on orders indicate that Capstone microturbines are quickly becoming the chosen power system to meet the growing needs of major oil & gas exploration and production companies operating in North America,” said Sam Henry, Horizon Power Systems President. “This order proves we are making serious inroads in meeting the customer’s high-caliber power needs using Capstone’s innovative microturbine technology.”

Capstone continues its penetration of the North American oil and gas market with another substantial follow-on order from an existing end use oil and gas customer. “The oil and gas market continues to be our fastest growing market worldwide, and the repeat orders indicate our customers’ satisfaction with our clean and green power generation solutions,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing.

Global Upstream Oil & Gas Producer Gives 5MW Order

February 2013 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today that it received a 5 MW follow-on order for a global upstream oil and gas producer. The five C1000 power packages will be installed in the Eagle Ford Shale play in Texas. This order increases this particular oil and gas producer’s total Capstone fleet to 10 MW in the Eagle Ford play.

Capstone distributor Horizon Power Systems secured both the initial order and this latest follow-on order for five megawatts.

“North American shale gas producers are continuing to adopt Capstone microturbines because they want the high reliability and low emission benefits of our products,” said Sam Henry, Horizon Power Systems President. “In addition, this customer is committed to conducting business safely, in a socially and environmentally responsible manner which is precisely what Capstone microturbines deliver.”

The Eagle Ford Shale is a hydrocarbon producing formation rich in oil and natural gas fields. The shale play area starts at the Texas-Mexico border in Webb and Maverick counties and extends 400 miles toward East Texas. The play is 50 miles wide and an average of 250 feet thick at a depth between 4,000 and 12,000 feet. The shale contains a high amount of carbonate which makes it brittle and easier to use hydraulic fracturing to produce the oil or gas. The oil reserves are estimated at 3 billion barrels with potential output of 420,000 barrels a day.

The microturbines will provide power for liquid processing plants and will be located at multiple central gathering plants. The microturbines, fueled by pipeline quality gas, will produce electricity to provide all power to the onsite equipment, including heaters, pump motors, compressors and distribution panels.

Capstone continues its penetration of the North American shale gas market with another substantial order from an existing customer. “The oil and gas market continues to be our fastest growing market worldwide,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing.

“Most of today’s global oil and gas companies operate in unique geographical, environmental and socially challenging areas in relatively isolated parts of the world. It is important that when they operate in these sensitive ecological areas near local communities they select the right state of the art equipment,” said Darren Jamison, Capstone’s President and Chief Executive Officer.