Samsung Orders 1.5 MWs of Capstone MicroTurbine Energy Systems.

CHATSWORTH, Calif. -- At a signing ceremony in Korea this morning, Samsung Corporation placed an order for 1.5 megawatts of microturbines with Capstone Turbine Corporation (www.microturbine.com)(Nasdaq:CPST), the world's leading manufacturer of microturbine energy systems. The order is valued at more than $1 million.

Samsung Corporation, the Korean distributor of Capstone MicroTurbine(TM) combined heat and power systems, will install four C60 models at their Samsung Plaza headquarters, 11 at a hospital and 10 at a high-rise apartment complex. Two Capstone C30 units will be deployed in a biogas application project.

In addition to its renowned consumer electronics and a vast range of other business activities, Samsung Corporation is engaged in energy services management for commercial and industrial customers throughout South Korea. A division of the company has embarked upon a growth plan that incorporates the Capstone MicroTurbine as a core product, and its Samsung Construction segment plans to adopt Capstone MicroTurbines in future apartment projects.

Industrial sector energy consumption in South Korea quadrupled in the last two decades, and total electricity consumption is projected to double again by 2020, according to the US Energy Information Administration. The South Korean government has enacted a Comprehensive Plan for Environmental Improvement to reduce pollutants and greenhouse gas emissions. The national power company, KEPCO, is undergoing restructuring and privatization.

These conditions are expected to provide a good platform for Samsung to succeed in developing its business for microturbines.

"We believe that these combined circumstances are favorable for distributed generation technologies," S. M. Lee, Managing Director of the Machinery & Electronics Division of Samsung Corporation, said during a previous visit to the Los Angeles area facilities of Capstone Turbine. "The very low nitrogen oxide emissions and very high combined-heat-and-power fuel efficiency of Capstone MicroTurbines would prove advantageous to these market conditions. Capstone systems offer many other exclusive attributes that can further enhance market acceptance."

Samsung contracted to be a Capstone MicroTurbine system distributor more than two years ago, and has been successfully running test projects of Capstone systems at two of its facilities, at KEPCO, and at the national natural gas utility KOGAS. In particular, the biogas-fueled installation noted above will be a joint project of Samsung, KEPCO and Korea Midland Power Company (KOMIPO, which was established in the restructuring of KEPCO).

"This order represents the first commercial introduction of Capstone MicroTurbines in Korea," said Capstone CEO John Tucker at the signing ceremony held at Samsung's corporate headquarters. "We are very proud to be working with this internationally renowned, world-class business leader."

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 7 million hours of documented operation.

"Capstone Turbine Corp" is a registered trademark 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, conditions expected to enhance the microturbine business of Samsung. 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:

High-resolution photos for publication related to this announcement are at: http://microturbine.com/whatsnew/morePhotos.asp?newsid=327

A press release on the commissioning of the first microturbine in Korea is at: http://microturbine.com/whatsnew/pressrelease.asp?article=248

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

Some example case studies are at: http://microturbine.com/onsite