Order for Six C65s From Producer With Current Capstone Fleet

March 2011 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, today announced it sold six additional C65s to a prominent natural-gas producer whose current fleet of 49 Capstone microturbines has exceeded 1 million run time hours.

Pumps & Service (Horizon Power Systems*), the Capstone Turbine distributor responsible for selling and securing the robust fleet of natural gas microturbines since 1999, indicated that the six additional C65 microturbines will expand the producer’s minigrid system in New Mexico’s San Juan Basin. The six new C65 microturbines, which will be installed in June, will be part of a microturbine generation station that provides power to pumping and water transfer units at remote sites via a complex underground electrical system.

“This is Pumps & Service’s longest running project using Capstone microturbines,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “With extremely remote wellsites in mountainous terrain that averages 6,500 feet in elevation, the producer needs an exceptionally reliable power source. Many of the microturbines in this company’s fleet have run for 12 years. They are incredibly durable.”

In Northern New Mexico’s rugged mountains, wellsites often are located five miles or more from a central facility. The central facility is key to the production process because it collects water pumped from the ground at each remote site. Traditionally, the water has been hauled through the rugged terrain by truck to the central facility, making the production process extremely expensive.

Capstone microturbines allow the producer to pump water from tanks at each wellsite to a central water disposal facility, where the water is then returned to the ground, thus eliminating the need for water hauling. In addition to significantly lowering costs, the removal of water trucks from the mountain roads eliminates harmful emissions and excessive dust.

“All the power for the producer’s minigrid comes from the Capstone microturbines,” said Sam Henry, Pumps & Service President. “We work hard to keep the San Juan Basin pristine by offering highly efficient, extremely reliable and low-emission Capstone microturbines that seldom require maintenance. Our customer is replacing high emission, high maintenance pump-jack engines that were installed at wellsites with Capstone microturbines, which ensures a cleaner San Juan Basin.”

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