Capstone Announces New Distributor Agreement for Chile

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CHATSWORTH, Calif.--

Capstone Turbine Corporation (www.microturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced the signing of a new Distributor Agreement with KLIMA, Distribuidora y Comercial Termica Ltda. (www.klima.cl) for all applications and market segments in Chile.

Headquartered in Santiago, Chile, KLIMA, Distribuidora y Comercial Termica Ltda. is the largest energy consulting company, and provider of Heating Ventilating and Air-Conditioning (HVAC) systems in Chile. The company has participated in HVAC and energy efficiency design, consulting, and installations to some of the largest buildings and industrial projects throughout the country. In addition, KLIMA sells a complete line of products, equipment and accessories for HVAC contractors and industries in Chile.

"By building out and strengthening our global distribution network, we are making significant inroads in multiple markets and multiple applications around the world," said Darren Jamison, President & Chief Executive Officer of Capstone Turbine Corporation.

"We continue to work hard to increase the awareness of microturbines and show the world our place in providing green and reliable energy with improved efficiency," said Jim Crouse, Executive Vice President, Sales & Marketing. "We are pleased to note that the qualified engineers and technicians at KLIMA are not only members and directors of the Chilean Chamber of Builders, but they are also LEED (Leadership in Energy & Environmental Design) certifiers for over 10 million square feet of various types of buildings."

"We pride ourselves in our affiliations with reputable companies in Europe, Asia and the United States. We pride ourselves with memberships in reputable organizations such as USGBC, AEE, and ASHRAE, and in providing the most dependable solutions available in the market today," said Juan Carlos Lagos Castaneda, General Manager of KLIMA, Distribuidora y Comercial Termica Ltda. "With growing global environmental concerns, we are very pleased to be working with Capstone Turbine Corporation as we share the same values of attention to product quality, to customers' needs, and to the environment."

About Capstone Turbine

Capstone Turbine Corporation (www.microturbine.com) (NASDAQ:CPST) is the world's leading producer of low-emission microturbine systems, and was the first to market commercially viable microturbine energy products. Capstone Turbine has shipped over 4,000 Capstone MicroTurbine(R) systems to customers worldwide. These award-winning systems have logged millions of documented runtime operating hours. Capstone Turbine is a member of the U.S. Environmental Protection Agency's Combined Heat and Power Partnership, which is committed to improving the efficiency of the nation's energy infrastructure and reducing emissions of pollutants and greenhouse gases. A UL-Certified ISO 9001:2000 and ISO 14001:2004 certified company; Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New Jersey, New York, Mexico City, Milan, Nottingham, Shanghai 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 new sales opportunities for Capstone, in particular in Chile, and the relationship between Capstone and KLIMA, Distribuidora y Comercial Termica Ltda. Forward-looking statements may be identified by words such as "expects," "objective," "intend," "targeted," "plan" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone's filings with the Securities and Exchange Commission that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. Capstone cautions readers not to place undue reliance on these forward-looking 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.

Source: Capstone Turbine Corporation

Released September 29, 2008