Capstone Announces New Distributor Agreement for Vietnam

CHATSWORTH, Calif.--

Capstone Turbine Corporation (www.microturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced the signing of a new Distributor Agreement with Toan Thang Ltd. (www.toanthang.vn) for oil & gas applications and market segments in Vietnam.

Established in 1993, with offices in Ho Chi Minh City and Vung Tau, Toan Thang Ltd. is one of the country's leading suppliers of highly engineered equipment and systems for oil & gas, power generation, water supply, and petro-chemical industries. Toan Thang provides many complementary products by major international suppliers as well as engineering and field service.

In describing this new agreement, Mr. Jim Crouse, Executive Vice President, Sales & Marketing said: "Our clean and green microturbines are an ideal solution for oil and gas producing operations using unprocessed wellhead gas to generate continuous ultra-low emission power."

"In fiscal year 2009, we look forward to continued growth in our oil and gas market. Perfect for both manned and unmanned platforms, this application leverages our value proposition of high reliability, long maintenance intervals, and low total cost of ownership," said Darren Jamison, President & Chief Executive Officer of Capstone Turbine Corporation.

"This new agreement offers our customers innovative solutions and total quality satisfaction. We are very pleased to be working with the Capstone team and look forward to a long-term successful relationship," said Mr. Truong Dinh Hoe, Managing Director of Toan Thang Ltd.

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 and ISO 14001:2004 certified company; Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New Jersey, 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 new sales opportunities for Capstone, in particular in Vietnam, continued growth in the oil and gas market and the relationship between Capstone and Toan Thang. 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

Released October 2, 2008