Capstone Books 2 MWs of Follow-On Orders from Japan, France.

CHATSWORTH, Calif. -- Leading microturbine energy systems manufacturer Capstone Turbine (www.microturbine.com) (Nasdaq:CPST) announced it has received new orders from distributors in Japan and France totaling two megawatts of Capstone MicroTurbine(TM) energy systems.

"In our last quarterly conference call, I said we expect to see improved growth in revenue this fiscal year over last," said Tucker. "With these two new orders and others now in hand, we are well on the path."

Takuma Company, one of three major Capstone distributors in Japan, placed an order for slightly more than one megawatt of microturbines. While in Tokyo last month for the opening of Capstone's first foreign office, Capstone CEO John Tucker noted that Takuma had commissioned more than 100 Capstone MicroTurbines in Japan.

"We are very pleased with the great success Takuma has had in deploying our microturbines at businesses ranging from hospitals and hotels to factories and universities. It's very encouraging to see that they intend to continue that trend," Tucker added.

In France, combined heat and power (CHP) developer Soffimat recently commissioned that nation's first renewable-fueled array of Capstone MicroTurbines at a landfill north of Paris. The success of that installation has spurred Soffimat to place a follow-on order for an additional one megawatt of Capstone systems, most of which is for Capstone's biogas-fueled model.

Soffimat's existing 240-kilowatt array in the town of Thieulloy produces renewable energy from otherwise flared waste gases emanating from the landfill. The power is fed into the grid of Electricite de France (EdF), the nation's electric utility, for which EdF will pay approximately $150,000 per year. Net of operating expenses, this will pay back the cost of the microturbines in about two years. Additionally, the clean, odor-free exhaust of the microturbines will be used to heat a nearby greenhouse currently under construction.

"We will recreate the great success of France's first renewable energy microturbine project at other landfills," Soffimat General Manager Pierre Samaha said at a public event held last month at the SMITOP landfill in Thieulloy. Among those attending the event were the French Minister of Ecology and Sustainable Development Serge Lepeltier and the newly appointed EdF Chairman Pierre Gadonneix. Gadonneix most recently was chairman of Gaz de France, the nation's natural gas utility.

The Soffimat SMITOP installation is similar to a 12-unit CHP array operating 20 miles north of Chicago. That Midwest site was named "Project of the Year" by the landfill methane division of the US Environmental Protection Agency.

About Capstone Turbine

Capstone Turbine Corporation (www.microturbine.com) (Nasdaq:CPST) is the world's leading producer of low-emission microturbine systems. In 1998, Capstone was the first to offer commercial energy products utilizing microturbine technology, the result of more than ten years of focused research. Capstone Turbine has sold and shipped more than 3,000 Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than 7 million hours of documented operation.

"Capstone Turbine Corp" is a registered trademark 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 Capstone's business, with regard to, among other items, product orders that can be canceled, expectations of its distributors to sell those products and Capstone's revenue growth expectations. Forward-looking statements may be identified by words such as "expects," "intend" and similar phrases. These statements are subject to numerous assumptions, risks and uncertainties that may cause Capstone's actual results to be materially different. These statements speak only as of the date of this release. Capstone disclaims any obligation to revise these statements hereafter.

Editors:

For information on the opening of the Tokyo office noted above, see: www.microturbine.com/whatsnew/pressrelease.asp?article=312

High-resolution photos of the 8-unit array at the French landfill are at: www.microturbine.com/whatsnew/morePhotos.asp?newsid=316

A French article on the landfill media event noted above is at: www.proxinews.com/asp/article.asp?idrub=2&idssrub=1&idarticle=

High-resolution photos and details on the EPA Project of the Year site are at: www.microturbine.com/whatsnew/morePhotos.asp?newsid=265

Spec sheets on Capstone's microturbine models are at: www.microturbine.com/technology/specsheets.asp