New York City Mayor Bloomberg Announces New Rule for Microturbine Deployment

CHATSWORTH, Calif.--

Capstone Turbine Corporation (www.microturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced that New York City has implemented the country's first standard for the use and installation of microturbine technology.

"Mayor Bloomberg's announcement yesterday (www.nyc.gov) of the new rule outlining the use and installation of microturbine systems in residential and commercial buildings in New York is an important milestone for Capstone as we look to help New York lower its greenhouse gas emissions and allow building owners to generate a portion of their own electricity throughout the five boroughs," said Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation.

The new rule was published in yesterday's City Record and takes effect immediately. The rule will help New York meet its commitment to reduce greenhouse gas emissions citywide by 30% between now and 2030, and it will help spur the real estate and development communities to build more efficient, greener projects moving forward.

"Capstone has been cooperating with the Cogeneration Task Force for more than a year to get this new standard written and on the books," stated Jim Crouse, Executive Vice President, Sales and Marketing for Capstone Turbine Corporation. "This has been a substantial undertaking by our employees, partners and consultants to work collaboratively with the Cogeneration Task Force in meeting the New York building codes and Fire Department safety guidelines," Crouse added.

Buildings in New York City generate 79% of the city's greenhouse gas emissions. By supplying on-site power generation to buildings, microturbine systems provide an energy-efficient supplement to power plants, New York City's conventional power supply. Building owners are now enabled to take advantage of Capstone's microturbine technology, which will help the City reach its PlaNYC goal of expanding clean distributed power generation citywide.

Under the rule, microturbine systems approved by nationally recognized testing laboratories such as Underwriters Laboratory (UL) can be installed at residential and commercial buildings in various locations, including within weatherproof enclosures at grade or on roofs and within mechanical rooms built with 2-hour fire-resistance rated walls.

About Capstone Turbine

Capstone Turbine Corporation (www.microturbine.com) (NASDAQ:CPST) is the world's leading producer of low-emission microturbine systems, and was the first to market commercially viable microturbine energy products. Capstone Turbine has shipped over 4,000 Capstone MicroTurbine(R) systems to customers worldwide. These award-winning systems have logged millions of documented runtime operating hours. Capstone Turbine is a member of the U.S. Environmental Protection Agency's Combined Heat and Power Partnership, which is committed to improving the efficiency of the nation's energy infrastructure and reducing emissions of pollutants and greenhouse gases. A UL-Certified ISO 9001:2000 certified company; Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New York, Mexico City, Milan, Nottingham, Shanghai and Tokyo.

"Capstone Turbine Corporation" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

This press release contains "forward-looking statements," as that term is used in the federal securities laws, about the ability of our products to lower greenhouse gas emissions. Forward-looking statements may be identified by words such as "expects," "objective," "intend," "targeted," "plan" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone's filings with the Securities and Exchange Commission that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. Capstone cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Source: Capstone Turbine Corporation