Capstone Receives $1.5 Million in New Units, Equipment Upgrades, Spare Parts and Service Orders from Pemex

CHATSWORTH, Calif.--

Capstone Turbine Corporation (www.microturbine.com) (Nasdaq: CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced that it has received orders for new microturbine systems for deployment on a Petroleos Mexicanos (PEMEX) offshore oil platform in the Gulf of Mexico and equipment upgrades to existing platform systems, spare parts and training.

Capstone received a microturbine order from GIMSA International, Inc. for approximately $400,000. The units will be installed on offshore platforms, producing crude oil and gas, which are operated by PEMEX. The microturbine packages purchased by GIMSA will meet the special requirement for offshore applications. This includes corrosion protection with a 316 stainless steel enclosure, Class I Division 2/NFPA 496 certification for use in hazardous areas, and UL listing. Capstone Turbine produces the world's only microturbine solution that meets all of these stringent requirements.

The equipment upgrades, spare parts and training totaling approximately $1.1 million were from Integrated Trade Systems, Inc. (ITS), a U.S. corporation that is wholly owned by PEMEX and provides integrated international procurement services to PEMEX and its four subsidiary entities in Mexico. The spare parts orders were placed under a $6.8 million blanket purchase order with ITS that was received in April 2008 and expires in April 2011.

"In November 2006, Capstone signed a five-year service agreement with ITS," said Shelby Ahmann, Capstone's Sr. Vice President of Customer Service. "This agreement with ITS has helped PEMEX streamline the process of procuring parts, technical support and training to support their operating fleet," added Ahmann.

Commenting on the order from GIMSA International, Jim Crouse, Capstone's Executive Vice President of Sales & Marketing, said, "Capstone's microturbine systems offer a tremendous value proposition for offshore platforms with their small footprint, high reliability, light weight, low emissions and extended maintenance periods. Previous systems operating at PEMEX and other oil and gas companies in offshore and onshore applications are operating very well and customers have been very impressed with the performance of our technology."

"We continue to increase our market presence in the oil and gas sector with PEMEX becoming our third largest microturbine customer behind Petrobras in Brazil and Gazprom in Russia. We know that our products are a great fit in this market and we are very pleased to have received these important follow-on orders for PEMEX platforms," said Darren Jamison, Capstone's President and Chief Executive Officer. "In addition, we believe our new C200 and C1000 products will further strengthen our overall product offering in the oil and gas sector allowing us to penetrate the larger manned platforms and onshore pumping and compression stations," added Jamison.

The Capstone offshore package also includes an energy storage system to start the microturbine and provide momentary power during abrupt load changes. The result is highly regulated voltage and frequency regardless of load changes. These compact, self-sufficient systems are perfect for unmanned platforms and have onshore dispatch, monitoring and diagnostics capability.

Capstone has extensive operating experience in Alaska, The Mediterranean, The Adriatic, The North Sea, Southeast Asia, the South Atlantic and the Gulf of Mexico.

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 thousands of Capstone MicroTurbine(TM) 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 York, New Jersey, Mexico City, Milan, Bath, 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 reliability, maintenance and environmental advantages of our products and new sales opportunities for Capstone, in particular, in the oil and gas sector. 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 June 16, 2008