Capstone Secures 7.2MW Order to Power Mexican Government Facility

CHATSWORTH, Calif., Oct. 12, 2012 (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 recently received an order for 39 diesel-fueled microturbines totaling 7.2 megawatts that will provide power to a Mexican government facility.

The order includes 35 Capstone C200's and 4 C65 liquid fueled systems, which are expected to be installed in early 2013. Capstone's distributor Enerxpert, secured the order and will be responsible for deploying and supporting this facility for the next two years. Enerxpert is a leading distributor in the microturbine market for Mexico and Central America. It has developed experience in large site installations for Service, Government and Hospitality industries and is headquartered in the Santa Fe District of Mexico City.

"Capstone microturbines are becoming the preeminent power solution for customers who demand high reliability and low emissions," said Jim Crouse, Capstone's Executive Vice President of Sales and Marketing. "This customer is replacing low-performance reciprocating engines with highly efficient diesel-fueled microturbines. They were impressed with Capstone's record of similar microturbine installations across the globe."

The 39 microturbines will provide clean-and-green power for mission-critical loads at the government facility.

"This project confirms that Mexico is a growing market in the energy sector," said Jorge Hernandez, Enerxpert Chief Executive Officer. "We see this as the first of several similar facilities in the next five years."

"To receive a purchase order of this size is another example of why Capstone is becoming a preferred power solution provider for mission-critical loads around the world," said Darren Jamison, Capstone's President and Chief Executive Officer. "We continue to see our business shift to the new larger C200 and C1000 based solutions with approximately 70% of our product revenue last quarter coming from our new game changing technology."

"The multi-billion dollar diesel engine market is declining globally because of increased pressure on emissions but with Capstone's technology customers who don't have readily available access to gaseous fuels can still meet the most stringent environmental standards operating Capstone microturbines on diesel, bio diesel and kerosene," added Jamison.

According to GlobalData's Diesel and Gas Generator Market Report "diesel generators are highly regulated by emission control norms across the globe. Thus, the diesel generator market is on a declining phase in most of the countries. It is seen that diesel generators which constituted 81% of the global generator market witnessed a decline in demand and their percentage share dropped to 69% in 2010. Share of gas generators, increased by 12% in the global market in five years, 2005-2010. The old diesel based products had to be rolled back from most of the countries in the North America and Europe. Though the lesser regulated regions might serve as a potential market to the companies dealing in diesel generators in the near term, there exists a strong need to focus on products complying with the new norms," as reported by GlobalData.

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 6,500 Capstone Microturbine 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 9001:2008 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 and Singapore.

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This press release contains "forward-looking statements," as that term is used in the federal securities laws, about the advantages of our products, growth of the oil and gas market and increased opportunities in the Australian coal seam gas industry. 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.

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Released October 12, 2012