Beacon Power Demonstrates Scale-Power Smart Energy Matrix for California Energy Conference Attendees.

WILMINGTON, Mass. -- Beacon Power Corporation (NASDAQ: BCON), a company that designs and develops advanced products and services to support more stable and reliable electricity grid operation, has announced that its first scale-power Smart Energy Matrix system, recently installed in California, was demonstrated on October 19, 2005, as part of an international energy storage conference. More than 70 attendees of the International Electrical Energy Storage Applications and Technologies (EESAT) conference toured the installation in San Ramon and were able to get a close look at Beacon's new system in operation.

The attendees, representing electric power utilities from the U.S., Canada, Europe, and Asia, as well as government agencies, universities, industry analysts, and manufacturers, witnessed performance tests whereby the system successfully received and automatically responded to pre-recorded signaling, transmitted remotely from Beacon Power's Massachusetts facility. The test signals that were used reflected a wide range of possible ISO-generated commands, requiring that the flywheel matrix be fully charged and fully discharged multiple times, with various steps in between. In addition, the system's operating interfaces, data acquisition capabilities, and remote monitoring software were also graphically demonstrated.

"This was a great opportunity to show a highly informed audience the potential for flywheel energy storage to play a key role in grid reliability," said Bill Capp, Beacon Power president and CEO. "This first Smart Energy Matrix thus far has been running well and operating as expected, and we're very pleased with its responsiveness and performance. We look forward to the next major milestone: live ISO-generated signaling and formal acceptance testing with the customer in December."

Beacon's scale-power flywheel-based energy storage system, which was built under contract to the California Energy Commission, in collaboration with the U.S. Department of Energy (DOE) and the California ISO, is designed to demonstrate the feasibility of providing highly responsive and cost-effective frequency regulation services for the electricity grid. This demonstration Smart Energy Matrix has all the functionality of the planned commercial system at a 1/10th power scale. The system is installed at the Pacific Gas & Electric Distributed Utility Integration Test (DUIT) site, where the country's first integration testing of commercial-grade, utility grid-interactive distributed energy resources is being conducted, including Beacon's system.

Beacon Power continues to make progress building a second scale-power Smart Energy Matrix demonstration system, under contract to the New York State Energy Research and Development Authority (NYSERDA). This system, developed in collaboration with the U.S. Department of Energy and the New York ISO, is planned for delivery to a grid-connected industrial site in Amsterdam, New York, before the end of 2005.

About Beacon Power

Beacon Power Corporation designs sustainable energy storage and power conversion solutions that would provide reliable electric power for the utility, renewable energy, and distributed generation markets. Beacon's Smart Energy Matrix is a design concept for a megawatt-level, utility-grade flywheel-based energy storage solution that would provide sustainable power quality services for frequency regulation, and support the demand for reliable, distributed electrical power. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S. For more information, visit www.beaconpower.com.

Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995:

Material contained in this press release may include statements that are not historical facts and are considered "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Beacon Power Corporation's current views about future events and financial performances. These forward-looking statements are identified by the use of terms and phrases such as "believe," "expect," "plan," "anticipate," and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from Beacon Power Corporation's expectation. These factors include: a short operating history; a history of losses and anticipated continued losses from operations; a need to raise additional capital combined with a questionable ability to do so; conditions in target markets; no experience manufacturing any product on a commercial basis; limited commercial contracts for sales to date; little experience managing operations in geographically dispersed locations; the dependence of sales on the achievement of product development and commercialization milestones; the uncertainty of the political and economic climate of any foreign countries into which Beacon hopes to sell or in which it operates, including the uncertainty of enforcing contracts and the potential substantial fluctuation in currency exchange rates in those countries; significant technological challenges to successfully complete product development; dependence on third-party suppliers; intense competition from companies with greater financial resources; possible government regulation that would impede the ability to market products; possible product liability claims and the negative publicity which could result; any failure to protect intellectual property; the possible need in the future to hire and retain key executives, particularly in light of the substantial workforce reductions during 2001 and 2002; the volatility in the stock price of companies operating in the same sector; the difficulties that often arise in integrating operations of companies after a merger or acquisition; the power of controlling shareholders and the limited ability of others to influence the outcome of matters put to the vote of shareholders. These factors are elaborated upon and other factors may be disclosed from time to time in Beacon Power Corporation's filings with the Securities and Exchange Commission. Beacon Power Corporation expressly does not undertake any duty to update forward-looking statements.