Capstone Names Houshmand Sales VP for Asia, South America, Africa.

Business Editors & Energy Writers

CHATSWORTH, Calif.--(BUSINESS WIRE)--Dec. 7, 2001

Capstone Turbine Corporation (www.microturbine.com) (Nasdaq:CPST) has hired Mory Houshmand as Vice-President of Sales and Business Development for Asia, South America and Africa.

Houshmand has been involved in the gas and power industries at Williams Companies (NYSE:WMB) for 22 years. He created several new businesses and concepts at Williams, including the establishment of the Williams Distributed Power Systems (WDPS) (www.williamsgen.com) subsidiary. In less than three years, Houshmand built the subsidiary from a start-up to a successful distributed generation product and engineering provider, with more than $150 million in assets and 300 megawatts of installed capacity.

Houshmand, considered a forward-looking power industry expert and one of the pioneers of commercializing distributed power, introduced the energy industry to concepts such as merchant distributed generation, flexible peaking and hybrid systems for oil and gas, power quality, and temperature control applications.

As Managing Director of WDPS at Williams, Houshmand successfully placed Capstone microturbines in multiple applications and geographies, such as oilfield "waste gas to power" for oil pumpjacks in Colorado, to numerous installations in South America, Malaysia, Hong Kong and North America.

On the appointment of Houshmand, Dr. Ake Almgren, Capstone President and CEO, said, "Mory is a true pioneer of distributed generation. We believe there is significant potential in the international markets and are confident that Mory will be an invaluable resource in accelerating our ability to capitalize on those opportunities."

Of his transition from Managing Director of WDPS to his new role at Capstone Turbine, Houshmand said, "I believe distributed power may be poised to revolutionize the energy industry. My goal is for Capstone's proven microturbine technology to play a significant role in this transformation.

"This position will allow me to be directly involved with an industry I am passionate about and a technology that I am convinced is the best and most powerful tool to make distributed generation a reality. The goal of my team is educating, energizing and executing. It is my belief that the Asian, South American and African markets have the potential to become a significant portion of Capstone Turbine's overall growth," Houshmand said.

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 power products utilizing microturbine technology, the result of more than ten years of focused research. Capstone Turbine has shipped more than 1,800 commercial production Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than one million hours of operation serving, among others, the following applications:

-- Hybrid electric vehicles (HEVs): onboard generation

-- Resource recovery: converting oilfield, landfill and sewage

waste gases into electricity

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

-- The 9s market: power security, quality and reliability

This press release contains "forward-looking statements," as that term is used in the federal securities laws, about Capstone's business, such as those related to opinions on the future of the energy industry and Capstone's role in that future. 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, including Capstone's ability to effectively implement its sales and marketing expansion program. These risk factors are identified, among other places, under "Business Risks" in Capstone's most recent 10-Q SEC filing. Capstone cautions you 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 such statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

For publication-quality, captioned image related to this announcement, see:

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