ADVISORY/Caterpillar Dealer Demonstrates Power Protection System.

Business Editors & High Tech Writers

ADVISORY...for Tuesday (March 6)

SAN LEANDRO, Calif.--(BUSINESS WIRE)--March 1, 2001

Flywheel Based CAT Uninterruptible Power Supply (UPS) Demonstrated By

Peterson Power Systems, Inc., and Active Power, Inc.

  WHAT: Demonstration of the CAT UPS that is protecting Peterson
        Power Systems' entire enterprise network during rolling
        blackouts, power outages and continuing power interruptions in
        California. Peterson Power Systems in conjunction with Active
        Power, Inc., will provide a tour and demonstration of this
        break-through battery-free solution for journalists to unveil
        the latest technology in power quality to their audiences. The
        media can witness simulated power outages in which the
        flywheel system will provide ride-through utility power until
        the Caterpillar generator starts.

   WHO: Peterson Power Systems, Inc., a Northern California
        distributor that markets Caterpillar(R) standby generators,
        UPS systems and switch gear; and Active Power, Inc.
        (Nasdaq:ACPW), which has developed a battery-free,
        flywheel-based power quality system marketed under the
        Caterpillar brand name.

   WHY: Power disturbances cost U.S. firms an estimated $30 billion
        annually in lost productivity and manufacturing processes.
        (Electric Power Research Institute, 1999). Unreliable electric
        power cannot be tolerated in today's digital world. From
        industrial plans where productivity is crucial, to the
        exploding build-out of advanced data centers, power quality is
        essential.

      CAT UPS protects enterprise systems against electric power
disturbances.

  WHEN: March 6th -- 9 a.m. to 6 p.m., demonstrations at flexible
        time intervals to accommodate assignment schedules and
        editorial deadlines.

 WHERE: Peterson Power Systems, Inc., 2828 Teagarden, downtown San
        Leandro, Calif. -- 30 mi. north of San Jose, 2 miles south of
        Oakland. Call 510/895-8400 for additional directions.

THE COMPANIES: Caterpillar Inc. (www.cat-electricpower.com) is the
        world's largest distributed power generation supplier,
        providing diesel and natural gas engines and industrial gas
        turbines. Peterson Power Systems, Inc.
        (www.petersonpower.com), serves the entire Northern California
        region providing Caterpillar(R) diesel and natural gas engines
        for electrical, industrial, temperature control, marine and
        trucking applications. Active Power of Austin, Texas
        (www.activepower.com), provides battery-free power, quality
        solutions that make the critical difference between a
        successful enterprise, and one that isn't. CleanSource(R) is
        an award-winning (Plant Engineering, 2001; R&D Magazine, 2000;
        Discover, 1998) flywheel energy storage system that provides
        reliable, low-cost and non-toxic replacement for lead-acid
        batteries used in conventional power quality installations.

          Active Power's CEO, Joe Pinkerton, an inventor of the flywheel
        technology, will be present to explain the benefits of this
        solution for the exploding power quality market. As a leading
        developer of battery-free power-quality solutions, Active
        Power, Inc. has rapidly become the industry leader with over
        26 registered patents in its portfolio.