LUKOIL Begins Commissioning 4MW Order for 17 Capstone Microturbines

CHATSWORTH, Calif., June 19, 2012 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, secured the 4 megawatt order for 17 Capstone microturbines – ranging from 65 kilowatts to 1 megawatt – to generate prime power at nine remote LUKOIL-PERM oil fields in Russia during the quarter ended March 31, 2012, in which Capstone reported a total of $49 million in new orders.

The 17 low-emission and highly reliable Capstone microturbines are being installed among nine separate modular power stations. All the microturbines will be fueled by untreated associated gas from the well sites that otherwise would be flared. The nine microturbine power stations will help the Russian oil producer meet its goal to use 95 percent of associated gas from its oil wells for power generation.

Five of the nine power stations have already been commissioned and are successfully generating onsite prime power to LUKOIL-PERM well sites. Capstone distributor BPC Engineering in Moscow secured the large multi-phase order and expects to commission the remaining four power stations this fall.

LUKOIL-PERM is a subsidiary of global oil giant LUKOIL, which produces approximately 2 percent of the world's crude oil supply.

"LUKOIL-PERM chose Capstone microturbines because they burn associated gas that contains up to seven percent hydrogen sulfides without requiring treatment equipment," said Alexander Skorokhodov, BPC Engineering CEO. "This makes them more viable and less expensive than gas turbines and piston engines, and a no-hassle solution for overcoming large quantities of hydrogen sulfides that can choke a traditional engine."

"Russia is Capstone's top oil and gas market," said Jim Crouse, Capstone's Executive Vice President of Sales and Marketing. "Russian oil and gas producers count on Capstone's high reliability, low emissions, and low maintenance. The fact that LUKOIL-PERM already has placed multiple orders is indicative of Capstone's growing presence and success in this oil-rich country."

About Capstone Turbine Corporation

Capstone Turbine Corporation (www.capstoneturbine.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 6,500 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 9001:2008 and ISO 14001:2004 certified company, Capstone is headquartered in the Los Angeles area with sales and/or service centers in the New York Metro Area, Mexico City, Nottingham, Shanghai and Singapore.

The Capstone Turbine Corporation logo is available at https://www.globenewswire.com/newsroom/prs/?pkgid=6212

This press release contains "forward-looking statements," as that term is used in the federal securities laws, about the quality of our products, growth of the Russian market and the ability of BPC Engineering to sell, install and maintain our products. 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.

"Capstone" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

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Released June 19, 2012