Capstone Turbine Hosts Mayor Riordan, Others in Dedication of New San Fernando Valley Headquarters.

Business Editors

CHATSWORTH, Calif.--(BUSINESS WIRE)--Sept. 7, 2000

LADWP's David Freeman says Los Angeles will be a

significant market for Capstone MicroTurbines,

and it is "up to us to make that come true."

Los Angeles Major Richard J. Riordan and Los Angeles Department of Water and Power General Manager David Freeman spoke today here at the dedication ceremony of Capstone Turbine Corporation's new 100,000 sq. ft. facility in Los Angeles.

Capstone manufactures ultra-low-emission microturbine power systems for stationary and hybrid electric vehicle applications.

Mayor Riordan said at the event that Capstone Turbine has "taken a giant leap outside the box by taking some common sense and new technology and putting together the best brains on the planet Earth. I think these are the brains that will make the planet a much better place to live. Los Angeles is truly the world leader in creativity and entrepreneurship, and nothing beats Capstone."

Freeman, commenting on Capstone's MicroTurbine(TM) power systems, said, "I didn't think I'd see this in my lifetime. A few years ago we in the industry had thought the big power plants and grid would carry the day indefinitely. In recent times, the old order sputtered and is making room for technologies like this to prosper.

"Capstone is ushering in a new electrical world that goes the way the computers went, starting off as huge mainframes and getting smaller and smaller. We may be inaugurating here that kind of new era."

Prior to his speech before a crowd of 200 Capstone-invited guests and employees, Freeman told a local newspaper reporter that the LADWP "thinks one of the reasons Capstone is locating here is that they see Los Angeles as a significant market, and it's up to us to make that come true."

Tours of the manufacturing facility, where the company now has the capacity to produce up to 20,000 Capstone MicroTurbine systems per year, were provided. Guests also had the opportunity to ride aboard one of the microturbine-energized Los Angeles Department of Transportation (LADOT) buses and a turbine-electric trolley bus made by the Downey-based E-Bus manufacturer.

"Seven stationary Capstone MicroTurbines currently power parts of our new facility, including our data center," Capstone president and CEO Dr. Ake Almgren said. "And the microturbine-energized trolley and LADOT city-transit buses are outstanding examples of our leadership in ultra-low-emission transportation applications. These are just two of many applications proving Capstone MicroTurbines to be today's best value for clean, reliable, onsite power generation."

The Capstone MicroTurbine is a versatile power and heat generation product for a wide range of applications, including hybrid electric vehicles, in which an onboard microturbine extends range and lowers costs; resource recovery, in which the microturbine uses waste gases to generate onsite electricity; stationary power generation in which the microturbine supplements power obtained from the electric grid or provides stand-alone power; and combined heat and power, in which the microturbine's hot, clean exhaust is used for air and water heating, boiler supplementation, absorption cooling, dehumidification, and other industrial heat needs. Fuel-flexible, UL-Listed Capstone MicroTurbines have a single moving part, use no oil or lubricants, and have NOx emissions below 9 parts per million.

About Capstone Turbine Corp.

Capstone Turbine Corporation (www.microturbine.com)(Nasdaq: CPST) is a 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 10 years of focused research and more than 30 patents. Worldwide, hundreds of commercial production Capstone MicroTurbine systems serve, among others, the following applications:

-- Hybrid electric vehicles (HEVs): onboard generation

-- Resource recovery: converting oilfield and biomass waste gases into
electricity

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

-- The 9's Market: Power quality and reliability

This press release contains "forward-looking statements," as that term is used in the federal securities laws, about Capstone's business, including statements regarding expected growth in applications over the next several years. Many of these statements may be found by looking for words such as "believes," "expects," anticipates," "estimates," or similar expressions. 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. These risks and uncertainties include those risks, uncertainties and risk factors identified, among other places, under "Risk Factors" in Capstone's registration statement on Form S-1, SEC File No. 333-33024. Capstone cautions against placing undue reliance on these statements, which speak only as of the date of this release.

Note: Product photos available at: http://www.microturbine.com/whatsnew. Event photos to follow on Business Wire.