Capstone Receives a 1.5 MW Order from the Government of Mexico.

CHATSWORTH, Calif. -- Capstone Turbine Corporation(R) (www.microturbine.com) (Nasdaq:CPST), the world's leading manufacturer of microturbine energy systems, confirmed today that it has received an order for more than 1.5 megawatts of propane-fueled Capstone MicroTurbine(R) energy systems from its distributor in Mexico.

According to the Mexico City newspaper Reforma, the government of Mexico issued a contract to install distributed generation systems at three government office buildings in Mexico City. Capstone distributor Areche Ingenieros, S.A. de C.V. has been awarded the contract.

"Mexico represents a tremendous opportunity for our products due to grid reliability issues and the high cost of electricity. Our C60's new fuel flexibility and 10-second fast transfer capability from utility grid to backup power make it a perfect product fit for the Mexican marketplace. This new order further supports our decision to open a Mexico City sales and service facility, which I recently mentioned in our fiscal year end conference call," said Capstone CEO John R. Tucker.

"We are very impressed with Capstone as an innovator and as a manufacturer of proven reliable equipment," said Carlos Arechederra, General Manager of Areche Ingenieros, one of Mexico's largest distributors of air handling systems for buildings. "We are proud to be able to make Capstone products available to our many business and government clients."

Capstone recently qualified its C60 microturbine product to run on propane. The systems can easily switch between propane and natural gas via a simple software setting, without requiring any injector or other internal fuel system changes. Two of the three buildings will be transitioned from propane to natural gas at a later date, pending infrastructure work by the gas utility. The third building, in a historic Mexico City square, will remain propane-fueled.

One of the smaller buildings will use an array of five dual-mode Capstone C60s to generate 300 kilowatts for daily baseload and backup power. The two other buildings will use a combined cooling, heating and power (CCHP) configuration in which exhaust from their arrays will transfer heat into absorption chillers that convert waste heat energy for air conditioning, further reducing electric demand.

"This is a great start for our colleagues at Areche Ingenieros, one of Mexico's leading companies in the field of heating, ventilation and air conditioning. They have a solid history of work with government and commercial buildings," said Tony Hynes, Capstone's Vice-President of Sales & Service. "We expect these new sites will serve as showcase facilities demonstrating how other sites in Mexico can cleanly and reliably conserve energy and energy costs utilizing Capstone products."

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 shipped more than 3,000 Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than 9.4 million runtime hours of documented operation. An ISO 9001:2000-certified company, Capstone Turbine is headquartered in the Los Angeles area, with sales and/or service centers in New York, Milan 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, expectations of repeatable business in Mexico. 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:

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

A Distributed Energy magazine article on Capstone-driven CCHP applications is at: www.distributednrg.com/de_0409_retrofits.html

Other example case studies are at: www.microturbine.com/onsite