Capstone Turbine Receives NYC Dept. of Buildings MEA Approval

Business Wire, May 24, 2006

BROOKLYN, N.Y. -- The New York Sales and Service office of Capstone Turbine Corporation(R) (www.microturbine.com)(Nasdaq: CPST) announced today that it has received its first Materials Equipment Acceptance (MEA) approval from the New York City Department of Buildings (NYCDoB) MEA Division and the New York Fire Department.

"We are very pleased with this accomplishment. It is the culmination of more than 15 months of diligent effort, to make Capstone the first in the industry to standardize its OEM and Applications Engineering Solutions for on-site power and distributed generation for New York City, Brooklyn, Queens, The Bronx and Staten Island," said Capstone CEO John R. Tucker.

The NYCDoB has issued Capstone its first MEA number, 193-05-E. Capstone will now supply that issued MEA number with each distributed generation microturbine solution it installs in New York. The MEA approval will also be on every filed job site application for permits with the Department of Buildings and the New York Fire Department. These application filings are necessary to secure contractor work permits for citywide installations of Capstone Branded Microturbine equipment.

"This first MEA approval for on-site power generation will allow property owners, architects, and engineers to secure the necessary plan approvals from the Department of Buildings and the Fire Department so building permits can be issued for installation of Capstone Branded products," said Tucker. "The MEA includes all of our industry leading UL approvals and approved OEM installation methods for our distributed generation solutions, thereby creating a "standard" for the installation that the Department of Buildings and any other agency or entity within the city or state will recognize as the manufacturer's approved OEM configuration," he added.

"With this issued MEA by the NYCDoB and the Fire Department, we can now actively move forward with additional sales efforts in New York for other market occupancy opportunities and related specific requirements, including our liquid fueled microturbines and our elevator package. Clearly, this first MEA approval is another factor in making Capstone Branded MicroTurbine(R) energy solutions more economically advantageous to the end user than any other competing product in the New York marketplace. It enables more rapid site approvals from regulatory agencies, equipment deployment and start-up commissioning through our standardized OEM installations. Now, customers in the five boroughs of New York will be able to reduce their utility costs and power demand with minimum installation delay," Tucker added.

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 more than 3,500 Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than 11 million 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 certified company, Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New York, Mexico City, Milan, 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 Capstone's business, with regard to, among other items, expectations of favorable action by the NYCDoB, increased business in New York, receipt of necessary plan approvals and economic advantage to end-users. 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 described in Capstone's SEC filings 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: Spec sheets on Capstone MicroTurbine models are at: www.microturbine.com/technology/specsheets.asp