Follow-On Order for Six Megawatts

January  2011 – Less than a month after receiving a three megawatt order from a large independent oil and gas company, Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, received a follow-on order from the same company for six more C1000 Power Packages.

Capstone distributor Pumps & Service (Horizon Power Systems*), which secured both orders from the same exploration and production company operating in the Eagle Ford Shale play in South Texas, expects the customer will continue to order additional C1000 microturbines in 2011. Today’s announcement is the fifth order Pumps & Service has received in recent months from large oil and gas companies operating in significant shale reserves in the United States.

“This oil and gas producer understands the high reliability of Capstone microturbines and the important role our microturbines play in ensuring round-the-clock energy production,” said Sam Henry, Pumps and Service President.

The six C1000s together will provide six 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.

“Sales of the C1000 are accelerating to companies in the oil and gas industry,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “These companies know our low-emission microturbines help oil producers meet stringent EPA air-permitting requirements and also are impressed with our microturbines’ high reliability and low maintenance.”

*NOTE: The business segment of Pumps and Service responsible for sales and service of Capstone microturbines changed its name to Horizon Power Systems.