Capstone Turbine Announces Internal Realignment.

Business Editors

Capstone Turbine Corporation (www.microturbine.com) (Nasdaq:CPST), the world's leading microturbine power systems manufacturer, announced today the resignation of Chief Operating Officer Norman Chambers in conjunction with a decision by its Board of Directors to undertake an internal realignment.

Commenting on the actions taken, Dr. Ake Almgren, President, Chief Executive Officer and Chairman of the Board of Capstone Turbine Corporation, said, "The Board of Directors has determined that the time was right to undertake an internal realignment. We will now be organized into five functional areas: sales and marketing, quality and customer service, engineering, operations and administration. This new streamlined structure combines our sales and marketing operations, brings all of our engineering efforts together and highlights quality and customer service as a key functional area. We expect this will create a more effective organization. With the new structure and the experience and talents of the leaders in charge of each area, the role of Chief Operating Officer is no longer warranted. We wish Norm all the best in his new endeavors."

About Capstone Turbine

Capstone Turbine Corporation (www.microturbine.com) (Nasdaq:CPST) is the world's leading producer of very-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 sold and shipped more than 2,000 commercial production Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than 1.5 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 management abilities and the Company's expectations of a more effective organization. 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. Such factors include, but are not limited to: 1) Capstone's dependence on its management and key employees; 2) the ability of Capstone to successfully execute its production and marketing programs; and other factors detailed in the Company's filings with the Securities and Exchange Commission. Capstone cautions readers not to place undue reliance on these statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

"Capstone Turbine Corp" is a registered trademark of Capstone Turbine Corporation. All other trademarks mentioned in this press release are the property of their respective owners.