Follow-On Order for 24 C65s

February 2011 – Capstone Turbine Corporation ( ) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, received an order for 24 additional C65 microturbines for one of the world’s largest independent oil and natural gas companies. This order is a follow-on order to an 18-unit C65 order received in August 2010. All 18 of the C65s purchased in August 2010 have been successfully commissioned by Capstone distributor Pumps & Service.

Pumps & Service (Horizon Power Systems*) has received approximately 12.5 MW of new orders over the past nine months from three major oil and gas companies exploring large shale reserves — or plays — in the United States. Customer adoption of Capstone microturbines in the oil and gas sector continues to expand in the U.S. The U.S. shale gas market is expected to grow substantially, especially since the U.S. Environmental Protection Agency’s (EPA) Clean Air Act has strict requirements for emissions levels at natural gas sites.

The latest order for 24 low-emission C65 microturbines will provide prime power to central processing facilities and metering stations at remote well sites in the Eagle Ford shale play in South Texas. The Eagle Ford play is expected to emerge as a major oil and gas play in the United States over the next decade. Experts estimate it will rank sixth in size among the all-time giant oil fields in the U.S.

“The fact that Pumps & Service initially received an order for 18 C65s followed by an order for three C1000s, followed by another six C1000s before this most recent order for another 24 C65s shows real momentum in the shale gas space and is a testament to the quality of our innovative products and the ability of our distribution partner Pumps & Service to sell, install and maintain our products,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing.

*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.