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.

Follow-On Order for 24 C65s

February 2011 – Capstone Turbine Corporation (www.capstoneturbine.com ) (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.