Capstone MicroTurbines at RI Natural Gas Co. Surpass 45,000 Operating Hours; Innovative Power Generators Have Operated Nearly Non-Stop for More than 5 Years.

CHATSWORTH, Calif. -- Capstone Turbine Corporation(R) (www.microturbine.com) (Nasdaq: CPST), the world's leading manufacturer of microturbine energy systems, announced that two of its 30-kilowatt microturbines currently operating at New England Gas Company in Rhode Island surpassed a milestone of more than 45,000 hours of near continuous operation.

"New England Gas Company, which serves more than a quarter-million customers in Rhode Island and Massachusetts, was an early supporter of distributed generation," said Capstone CEO John R. Tucker. "Their two Capstone C30s have been running nearly non-stop for more than five years, accumulating more than 45,000 hours of operation thus far."

"We are elated with the performance of these Capstone MicroTurbine(R) systems at our Cumberland facility," said New England Gas Company CEO Thomas C. Robillard. "We believe that this product, and its proven reliability, enhances the viability of distributed generation. I'm also pleased to see Capstone now leading the charge here in the Northeast for energy conservation using clean, efficient distributed generation."

The gas utility's two C30 systems create power 24/7, reducing demand on the local utility grid. "We're focused on seeing how far we can push the two little beauties we've been running here since 2000," said New England Gas Company Technician Bob Tousignant.

Capstone MicroTurbines are very low emission, very high efficiency generators of power and heat used to reduce energy costs and increase energy security at a variety of businesses and public facilities. With only one moving part and no need for oil, lubricant, coolant, other hazardous materials or even water, Capstone MicroTurbines are most often deployed in combined heat and power (CHP) applications in which the exhaust heat is used to heat water or to drive absorption chillers - which create cold from heat energy instead of electric energy - in combined cooling, heating and power (CCHP) applications.

Several examples of Capstone's CHP and CCHP installations will be featured at the US Department of Energy's Microturbine Applications Workshop (www.ms.ornl.gov/maw06/default.html) being held next week in San Francisco. In addition to several end-user presentations, the workshop will feature a tour January 19 of a utility site in Oakland that operates an array of ten C60 Capstone MicroTurbines as well as a tour highlighting four 60-kilowatt Capstone-made systems driving an OEM CCHP installation at the San Francisco Ritz-Carlton Hotel.

About New England Gas Company

New England Gas Company, headquartered in Providence, Rhode Island, serves over 290,000 residential and commercial customers in Rhode Island and Massachusetts and employs more than 700 people. It is a division of Southern Union Company (NYSE: SUG). Southern Union Company, headquartered in Wilkes-Barre, Pennsylvania, is engaged primarily in the transportation and distribution of natural gas. For more information, visit www.negasco.com or www.southernunionco.com .

About Capstone Turbine

Capstone Turbine Corporation (www.microturbine.com; Nasdaq: CPST) is the world's leading producer of low-emission microturbine systems, and was the first to market commercially viable microturbine energy products. Capstone Turbine has shipped more than 3,200 Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than 10 million documented runtime operating hours. Capstone Turbine is a member of the U.S. Environmental Protection Agency's Combined Heat and Power Partnership, which is committed to improving the efficiency of the nation's energy infrastructure and reducing emissions of pollutants and greenhouse gases. A UL-Certified ISO 9001:2000 certified company, Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New York, Mexico City, Milan, Shanghai and Tokyo.

"Capstone Turbine Corporation" and "Capstone MicroTurbine" are registered trademarks 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, Capstone products enhancing the viability of distributed generation. Forward-looking statements may be identified by words such as "expect," "believe" 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:

A photo of the two C30s operating at New England Gas is at: www.microturbine.com/whatsnew/morePhotos.asp?newsid=376

Information on the DOE Workshop noted above is at: www.ms.ornl.gov/maw06/default.html , a detailed agenda is at: www.ms.ornl.gov/maw06/pdfs/maw06_agenda.pdf

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

Example case studies are at: www.microturbine.com/onsite