SATCON DEMONSTRATES RECENT PRODUCT DEVELOPMENTS REPORTS THIRD QUARTER RESULTS OFF.

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 8, 1995--SatCon Technology Corporation (NASDAQ:SATC) today demonstrated three pre-production prototypes developed under internally funded programs. The systems demonstrated were a flywheel energy storage system aimed at stationary uninterruptable power supply markets, an advanced replacement alternator for automotive applications, and an advanced actuation system for semiconductor processing equipment.

David Eisenhaure, President and CEO, said, "This is exciting news in SatCon's transition to a product company. In 1992 when SatCon went public our emphasis was transitioning the company from a government research and development base to bring to the commercial market a new generation of intelligent electromechanical products. During the past few months SatCon has made progress to this end and we have demonstrated today three systems for three separate markets." Eisenhaure continued, "SatCon's approach to this transition has been and remains to find customers and/or partners that provide funds for product development. This path tends to minimize SatCon's direct dollar investment in a particular venture and assures market pull for the product being developed. Traditionally the characteristics of this type of program are that they are longer term, emphasize technology development, and have higher risk. In each instance of the three products demonstrated today, flywheel energy storage systems, advanced automotive alternators, and semiconductor actuation systems, we felt it essential to make an investment in product development to get to the market as quickly as possible."

Michael Turmelle, CFO, said "This investment coupled with a delay in the Patriot Program significantly impacted third quarter results. The delay in the Patriot Program was timely in that it freed key personnel to undertake these product developments."

Revenues for the third quarter ended June 30, 1995 were $530,552, down from $5,020,208 from the same period a year ago. The net loss for the period was ($1,765,329) as compared to a net income of $371,703 for the same quarter a year ago. Net loss per share for the third quarter was ($0.23) on 7,751,064 weighted average shares outstanding.

As previously reported, the company indicated that testing of first generation drive train components for the Patriot Technology Program might identify possible design improvements which could delay the production of subsequent units. Such delays occurred and as a result, SatCon did not realize planned revenue from this program during the third quarter. In a related development, SatCon is negotiating with Chrysler Corporation (NYSE: C) a long term relationship which builds on the work being done under the Patriot Program.

David Eisenhaure said, "I am extremely pleased with the progress toward commercialization made during our third quarter. The investment made by the company was in the best interests of the shareholders and brings the company closer to substantial product opportunities. In summation, the quarter was significant in that we are in negotiations with Chrysler of a longer term nature, the Patriot technology continues to show promise, and SatCon has three outstanding product initiatives in the commercial area."

Bill Stanton, COO, in speaking about the recent product developments, said, "The key feature of the flywheel is its ability to act as an electromechanical battery, to store and release energy in a controllable manner. Market entries for this product potentially include cable television providers, telephone companies, satellite communication applications, traditional UPS applications, and power quality initiatives. In each instance, the need to replace current battery solutions which have limited life, poor reliability, high maintenance requirements, and environmental concerns has opened the door for a flywheel solutions."

SatCon's advanced automotive alternator provides more power at the lower speeds. The issue with current automotive alternators is the ability to match power requirements at idle. By addressing key limitations of current alternators, SatCon is attempting to attack the automotive alternator market.

The magnetic actuation system that SatCon has developed for semiconductor processing does not create unwanted debris, has higher throughput, and is more easily maintained than existing mechanical systems. This entry into semiconductor processing equipment is the tip of the product opportunities for electro-magnetic actuation in a large and rapidly expanding capital equipment market."

-0-

           SatCon Technology Corporation Statement of Operations

                  Three months ended          Variance
                  June 30                     1995 vs. 1994
                  1995        1994            $              %

Revenue            $530,552   $5,020,208      ($4,489,656)   (89.43%)
Net
 Income/(Loss)  ($1,765,329)    $371,703      ($2,137,032)   (574.93%)
Earnings/(Loss)      ($0.23)       $0.05           ($0.28)   (560.00%)
per common share
Shares
 outstanding      7,751,064    7,520,013          231,051       3.07%
(weighted average)

CONTACT: SatCon Technology Corporation

Michael C. Turmelle

[phone]