C600 Sold for Use in Marcellus Shale Play

July 2010 – Capstone Turbine Corporation (www.capstoneturbine.com ) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, sold the low-emission C600 microturbine to one of the largest natural gas producers in the United States.

The company is producing natural gas from six key reserves — or plays — across the United States. It will use electricity produced by the C600 to power a compression station associated with the Marcellus Shale play, labeled a “super giant” oil field that spans northern West Virginia, Pennsylvania and southern New York.

“Air permitting has become a major concern for developers and producers,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “Capstone’s clean-and-green, low-emission microturbines can play a key role in ensuring continued development of these rich shale plays. Because microturbine emissions are considerably lower than internal combustion engines, it is easier for developers to meet increasingly stringent requirements.”

The U.S. Environmental Protection Agency’s (EPA) Clean Air Act has strict requirements for emissions levels at natural gas sites. The EPA reviews stationary equipment at wellheads and compression stations along pipelines to ensure emissions meet federal requirements.

The Capstone C600, which produces 600 kilowatts of electricity, utilizes Capstone’s patented air bearing technology, which helps to provide lower operational cost and additional reliability.

“The six large shale plays have just begun to be tapped and could revolutionize the U.S. market for natural gas,” said Darren Jamison, Capstone President and CEO. “These six very large shale formations could pave the way for a new century of natural gas abundance and stable natural gas prices. We view this as a large potential market for our products.”