Northern Power Systems Expands Operations With New Space in Former Bombardier Manufacturing Plant in Barre, Vermont

Business Wire, Nov 3, 2004

WAITSFIELD, Vt. -- Northern Power Systems, a subsidiary of Distributed Energy Systems Corp (NASDAQ: DESC), announced the expansion of the company's manufacturing capabilities by leasing 35,000 square feet of space at the former Bombardier plant in Barre, Vermont. The expansion coincides with a strong hiring trend the company is currently experiencing. Northern anticipates a need to hire at least 35 new employees in the next few months, specifically electrical and mechanical technicians, drafters, and electrical, mechanical, and controls engineers.

"Northern is positioning itself for continued success in the increasingly vibrant distributed generation and industrial infrastructure power systems markets," said Northern president Clint "Jito" Coleman. "We have already filled 30 new positions since August this year."

"This is great news for Vermont. The local expansion of Northern's manufacturing capability represents a milestone in bringing good-paying jobs to the state that we previously exported to places like Oklahoma and Louisiana," he added.

The new manufacturing space will primarily be used to fabricate and assemble power systems contained in large industrial shelters. Such systems are deployed worldwide for remote power applications. Northern will also be using the space to manufacture its award-winning NorthWind(R) 100 wind turbines. The first machines produced at the plant will be shipped to western Alaska to produce renewable energy for three remote communities.

"The new Barre facility is going to be a significant benefit to Northern's business and to Distributed Energy Systems' presence in the expanding distributed generation market," noted Walter "Chip" Schroeder, president of Distributed Energy Systems Corp. "As Northern continues to do more large-scale projects, it will be essential to have direct collaboration between engineering staff and the manufacturing technicians, and the new facility gives us that collaborative capability. At the same time, it will enable Northern to have greater control over the process quality."

Potential employment candidates should visit the Career Opportunities page of Northern's website at www.northernpower.com. Women and minorities are encouraged to apply.

About Northern Power Systems, Inc.

Northern Power Systems, Inc. designs, builds and installs reliable power solutions for commercial, industrial, government, and military customers. The company also conducts research and development in the areas of renewable energy, distributed generation and hydrogen technology. Since its founding in 1974, Northern has installed over 800 systems in 45 countries on all seven continents. Northern Power Systems, Inc. is headquartered in Waitsfield, Vermont with field offices in the New York metropolitan area and San Francisco. The company employs 130 people with turnkey design, engineering, construction, and customer-support capabilities. Northern Power Systems is a wholly owned operating unit of Distributed Energy Systems Corp. For more information, visit www.northernpower.com.

About Distributed Energy Systems Corp.

Distributed Energy Systems Corp. (Nasdaq: DESC) creates and delivers products and solutions to the emerging decentralized energy marketplace, giving users greater control over their energy cost, quality, and reliability. As the parent company of Proton Energy Systems, Inc. (www.protonenergy.com) and Northern Power Systems, Inc., Distributed Energy Systems delivers a combination of practical, ready-today energy solutions and the solid business platforms for capitalizing on the changing energy landscape. For more information, visit www.distributed-energy.com.

This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Statements contained herein that are not statements of historical fact, including statements concerning business expansion and increased hiring, may be deemed to be forward-looking information. Without limiting the foregoing, words such as "anticipates", "believes", "could", "estimate", "expect", "intend", "may", "might", "should", "will", and "would" and other forms of these words or similar words are intended to identify forward-looking information. Northern's and Distributed Energy's actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. Northern Power Systems and Distributed Energy each disclaim any obligation to update these forward-looking statements.

Factors that could cause results to differ materially from those contained in Northern's and Distributed Energy's forward-looking statements include, but are not limited to, failure of our products and systems to perform as specified or achieve commercial acceptance, the impact of competitive products and systems, and other factors detailed in Distributed Energy's Form 10-Q for the quarter ended June 30, 2004, and other filings Distributed Energy may make from time to time with the SEC.