American Energy Savings Orders 126 Microturbines from Capstone Turbine.

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Business Editors

CHATSWORTH, Calif.--(BUSINESS WIRE)--Oct. 11, 2000

Environmentally Beneficial Energy Marketer to Use Capstone

MicroTurbines to Generate Electricity with "Near-Zero Emissions"

Capstone Turbine Corp. (Nasdaq: CPST) announced a two-year, 126-unit order for its microturbine power systems from American Energy Savings Inc. (AES), a Los Angeles-area independent power marketer.

"American Energy has dedicated itself to providing power through the utilization of renewable energy and through new, zero- or near-zero-emission technologies such as solar power, hydroelectric power, wind, geothermal and now Capstone's microturbine technology," said Russell Koehler, chairman of the board and CEO of American Energy Savings.

"During these times of rising electrical and energy-related costs, American Energy Savings provides the expertise and resources to stabilize and lower these costs," added AES President Jeffrey Valmus. "Our project development and management team can provide guaranteed utility costs to our clients through our performance contracts.

"Additionally, we can develop onsite micro-cogeneration via one or several Capstone MicroTurbines to provide a reliable source of primary and backup power. This synergy will allow for the maximum savings to our clients and maximum profitability to our shareholders."

AES has several projects for microturbines in preliminary stages, including renewable applications in which Capstone MicroTurbines(TM) would be deployed to convert unprocessed waste gases from landfills and digesters into electricity for onsite use. Such gases are usually flared or vented directly into the atmosphere.

Capstone MicroTurbines can instead use these "greenhouse gases" as fuel to generate usable heat and electricity. The resulting exhaust has almost no nitrogen oxide (NOx) emissions. In a recent Capstone release on this subject (at www.microturbine.com/whatsnew/pressrelease.asp?article=3), independent testing showed Capstone's NOx emissions to be 1.3 parts per million using landfill gases.

"AES is a leader in focusing on the environmental impacts of power generation, which matches very well with the low-emissions profile of the Capstone MicroTurbine," said Ake Almgren, Capstone's president and CEO.

Capstone MicroTurbines are compact power and heat-generation systems deployed worldwide in a wide range of applications. Fuel-flexible, UL-Listed Capstone MicroTurbines have a single moving assembly, use no oil or coolants, and can operate on a number of liquid and gaseous fuels. They offer fossil fuel combustion that is among the cleanest of any non-catalytic systems available, and provide today's best value for onsite power.

About American Energy Savings

Incorporated in 1976, American Energy Savings (www.americanenergysavings.com) in Sherman Oaks, Calif., is a federal and state licensed energy and power management company engaged in the wholesale and retail sales of electricity and natural gas to the general public.

AES, with 24 years of successful operating experience in the energy consulting industry, has now positioned itself to take full advantage of the deregulated electric market by providing industrial, commercial and residential users of electricity with guaranteed savings through fixed pricing structures in what has become an extremely volatile market.

About Capstone Turbine

Capstone Turbine Corp. (www.microturbine.com) is a leading producer of low-emission microturbine systems. In 1998, Capstone was the first to offer commercial power products utilizing microturbine technology, the result of more than 10 years of focused research. Worldwide, hundreds of commercial production Capstone MicroTurbine systems serve, among others, the following applications:

-- Hybrid electric vehicles (HEVs): onboard generation

-- Resource recovery: converting oilfield and biomass waste gases into
electricity

-- Micro-cogeneration: combined heat/power/chilling solutions

-- The 9s market: power quality and reliability

This news release contains "forward-looking statements," as that term is used in the federal securities laws, about Capstone's business, including statements regarding the expected future of microturbine technology and future sales. Readers can find many of these statements by looking for words such as "believes," "expects," anticipates," "estimates," or similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. These risks and uncertainties include those risks, uncertainties and risk factors identified, among other places, under "Risk Factors" in Capstone's registration statement on Form S-1, SEC File No. 333-33024. Capstone cautions readers not to place undue reliance on these statements, which speak only as of the date of this release. Capstone undertakes no 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.

Note to Editors: Photos available at: http://www.microturbine.com/whatsnew