Beacon Power to Appeal Nasdaq Determination.

Energy Editors/Business Editors

WILMINGTON, Mass.--(BUSINESS WIRE)--June 18, 2003

Beacon Power Corporation (Nasdaq: BCON), a development stage Company that designs and develops sustainable energy storage and power conversion solutions, today announced that it has requested a hearing to appeal a Nasdaq Staff Determination that the Company no longer complies with the $1.00 minimum bid price requirement for continued listing and that the Company's common stock is, therefore, subject to delisting from the Nasdaq SmallCap Market, pursuant to Nasdaq Marketplace Rule 4310(c)(4).

The Company received a letter from Nasdaq dated June 11, 2003 stating that the Company's common stock would be delisted as of the opening of trading on June 20, 2003, unless the Company requested a hearing by June 18, 2003. Under Nasdaq rules, the scheduled delisting is stayed pending the outcome of the hearing. Until then, the Company's common stock will remain listed and will continue to trade on the Nasdaq SmallCap Market.

At the hearing, the Company intends to request an extension of the time to raise its share price. There can be no assurance the Panel will grant the Company's request for continued listing.

If the appeal is denied, the Company's common stock will be delisted from the Nasdaq SmallCap Market. In such event, the Company expects its common stock will trade on the OTC Bulletin Board's electronic quotation system. The Company's shareholders will still be able to obtain current trading information, including the last trade bid and ask quotations and share volume.

About Beacon Power Corporation

Beacon Power Corporation designs and develops sustainable energy storage and power conversion solutions that provide reliable electric power for the renewable energy, telecommunications, distributed generation and UPS markets.

For more information, please contact James Spiezio, Chief Financial Officer at Beacon Power Corporation, tel. [phone]; fax [phone]; email [e-mail], or send mail to 234 Ballardvale Street, Wilmington, MA 01887. Visit Beacon Power on the Internet at 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; no commercial contracts for sales to date; 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, 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 recent volatility in the stock price of companies operating in the same sector; 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.