Capstone Announces New Distributor Agreement for Central and East Texas

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 Five Star Electric (www.fivestarelectric.com) for all applications and market segments in Central and East Texas.

Headquartered in San Antonio, Texas, with sales and service offices in Austin, Houston, Dallas/Ft. Worth, San Antonio and New Orleans, Five Star Electric's vision is to be the leading Texas-based company providing world-class technical solutions and services to customers by manufacturing and representing electrical power conversion, motors, and control/automation/instrumentation for various industries.

"Five Star Electric's staff of highly qualified engineers and technicians provides their customers engineering solutions using the highest quality and dependable equipment," said Jim Crouse, Capstone Turbine's Executive Vice President of Sales & Marketing.

"With offices located in the Houston and Dallas areas, Five Star is positioned to help Capstone in the oil and gas markets. Their relationships with multinational and domestic energy companies as well as the engineering and construction firms that support this industry are critical to leveraging Capstone in the oil and gas industry," added Lee Richards, Capstone's Director of Sales, Oil and Gas.

"Strengthening our distribution network is an important part of our strategic plan," said Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "Five Star works with high quality manufacturers and has an impressive list of clients. Their track record of successful projects both on-shore and off-shore was critical in our selection of Five Star," Jamison added.

"We pride ourselves in operating our business efficiently, supporting the community, and on providing the most dependable solutions available in the market today," said Mr. Richard Lux, President and Chief Executive Officer of Five Star Electric. "Capstone Turbine's reputation and leadership in the microturbine technology makes them an ideal partner for us. We are looking forward to a long and successful relationship," added Mr. Lux.

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, 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 new sales opportunities for Capstone in our oil and gas application in Central and East Texas and a successful working relationship between Five Star Electric and Capstone Turbine Corporation. 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 April 15, 2008