Capstone Signs PowerTherm Systems as OEM for Hybrid Boiler Solutions

CHATSWORTH, Calif., Dec. 14, 2009 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST) the world's leading clean technology manufacturer of microturbine energy systems, announced today that it has entered into an Original Equipment Manufacturer (OEM) agreement with PowerTherm Systems, Incorporated (www.powerthermsystems.com). PowerTherm Systems offers hybrid boiler products by integrating Capstone's clean and reliable microturbines with premium boilers manufactured by EASCO Boiler Corporation. PowerTherm utilizes WESCO Distribution (NYSE: WCC) (www.wesco.com) as their exclusive world-wide channel to market the PowerTherm product line.

"Capstone is proud to be part of the PowerTherm hybrid boiler solution, and having its technology paired with a company like EASCO Boiler, which has been building quality products since 1925. This solution is truly a 'Boiler That Makes Electricity' with the microturbine producing electricity while its high temperature exhaust flows directly into the boiler combustion chamber or via a heat exchanging coil within the unit," said Darren Jamison, Capstone President and CEO. "In addition, I'm very impressed with PowerTherm naming WESCO Distribution, a Fortune 500 company and leading distributor of electrical construction and industrial maintenance products, as its world-wide channel partner," added Jamison.

Buildings account for over 40% of the total Green House Gas (GHG) emissions in the United States. Using the Environmental Protection Agency's (EPA) combined heat and power (CHP) calculator, the single installation of a base model PowerTherm Energy Solution can reduce C02 emissions by over 250 tons per year, which is equivalent to permanently removing 40 cars from the highways of the world.

"Traditional boilers are sized to assure that buildings have adequate heat on the coldest days of the year. Since maximum heat is not required for most other days, boilers are almost always cycling on and off, which creates standby losses, with the burners firing at sub-optimal levels. This form of operation, which has traditionally been necessary, is inefficient, wastes fuel and increases the maintenance costs. These inefficiencies and economic losses can be dramatically reduced and the thermal energy of the boiler can be greatly increased with the PowerTherm product. In addition to the increase in boiler efficiency, the PowerTherm boilers, utilizing Capstone's MicroTurbine, create an additional savings by generating electricity to reduce overall site energy costs," according to Jim Crouse, Capstone's Executive VP Sales and Marketing.

"We view PowerTherm as a breakout product in the energy efficiency market and part of the continued expansion of our Green and Sustainable Initiatives. PowerTherm represents an innovative and compelling solution that simultaneously produces hot water for heating use, while generating electricity through a single integrated system. Multiple configurations make PowerTherm suitable for a wide range of new construction and renovation projects in large residential buildings and commercial and industrial facilities where boilers are utilized. With tens of thousands of boilers in New York City and close to a million boilers nationwide, we see substantial opportunity in this product deployment. We look forward to having access to an increasing offering of PowerTherm related solutions," said Stephen A. Van Oss, SVP and Chief Operating Officer of WESCO International.

"It has been a multi-year effort on behalf of PowerTherm, EASCO and WESCO to complete the PowerTherm product development and market strategy. Now that the product is commercial and PowerTherm is taking orders I am pleased to have them as an OEM partner," added Jamison.

About Capstone Turbine Corporation

Capstone Turbine Corporation (www.capstoneturbine.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 5,000 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 and ISO 14001:2004 certified company; Capstone is headquartered in the Los Angeles area with sales and/or service centers in the New York metro area, Mexico City, Nottingham, Shanghai, Singapore and Tokyo.

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This press release contains "forward-looking statements," as that term is used in the federal securities laws, about reduced emissions, cost savings and the success of the PowerTherm product. 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. "Capstone Turbine Corporation" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

CONTACT: Capstone Turbine Corporation
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Released December 14, 2009