Beacon Power Adds Former Utility Commission Chairwoman Judith Judson to Management Team

Business Wire, Feb 26, 2008

Regulatory Expert Will Lead Efforts to Accelerate Company's Entry into Frequency Regulation Markets

TYNGSBORO, Mass. -- Beacon Power Corporation (NASDAQ: BCON), a company that designs and develops advanced products and services to support more stable, reliable and efficient electricity grid operation, has hired Judith Judson as Director of Regulatory and Market Affairs. Ms. Judson brings significant experience in electric utility regulation, market development and policymaking, and business management. She is expected to play a lead role in facilitating Beacon's commercial deployment of frequency regulation services in both the United States and overseas markets.

"We're very pleased to have Judith join us at this pivotal juncture as we expand our efforts to optimize interconnection opportunities on the grid and accelerate commercial roll-out," said Bill Capp, Beacon president and CEO. "Her high level of credibility and proven record of accomplishment in utility regulation, including complex market rules and interconnection processes, make her ideally suited to guide Beacon through the electric power industry landscape. Judith's skills are especially relevant to Beacon given the recent implementation of new rules by the Federal Energy Regulatory Commission, in particular FERC Order No. 890."

FERC Order No. 890 Ensures Greater Competitiveness and Grid Access

In February 2007, the Federal Energy Regulatory Commission (FERC) issued a landmark ruling, known as Order No. 890, which seeks to promote greater competition in electricity markets and strengthen the reliability of the grid. In particular, one provision of FERC Order No. 890 mandated that so-called "non-generation" resources, which include Beacon's flywheel technology, be allowed to participate in ancillary services regulation markets on a completely non-discriminatory basis.

"When FERC Order No. 890 was issued and grid operators responded with their individual compliance plans, Beacon immediately became an active participant in the process," said Judith Judson. "Each of the ISOs has a somewhat different approach to Order No. 890 compliance. Our close involvement in compliance and other regulatory proceedings, including filing motions with FERC to intervene, has been aimed at both speeding the process of opening markets and making sure we get paid fairly for the services that we provide." Ms. Judson added, "FERC recently reaffirmed the provisions of the Order, and we are continuing to work with the ISOs and FERC to complete the process mandated by Order No. 890."

Before joining Beacon, Ms. Judson worked in Massachusetts state government from 2003 through early 2007, where she rose to become the state's head energy and telecom regulator. As Chairman of the Massachusetts Department of Telecommunications and Energy, Ms. Judson managed a 150-person team to regulate the state's $11-billion energy industry and $4-billion telecom industry, including setting utility rates and approving new energy facilities. Working with stakeholders across government and private industry, she led the department's efforts to create new wholesale electricity markets in New England and develop a comprehensive state energy policy focused on conservation and renewable technologies. In addition, she served as Chairman of the state's Energy Facilities Siting Board, overseeing the siting of new energy transmission, distribution and generation.

After leaving state government, Ms. Judson ran a successful energy consulting business, advising clients on energy regulation, power markets and public policy. Prior to her state government roles, Ms. Judson had a successful business career working in both real estate development and management consulting. Ms. Judson holds an MBA from Harvard Business School and a Bachelor's degree in Mechanical Engineering from Kettering University.

About Beacon Power

Beacon Power Corporation designs, develops and is taking steps to commercialize advanced products and services to support stable, reliable and efficient electricity grid operation. The Company's primary business strategy is to commercialize its patented flywheel energy storage technology to perform frequency regulation services on the grid. Beacon's Smart Energy Matrix, now in development following approval for use in three of the country's five open-bid regulation markets, is designed to be a non-polluting, megawatt-level, utility-grade flywheel-based solution that would provide sustainable frequency regulation services. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S. For more information, visit www.beaconpower.com.

Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995: Material contained in this press release may include statements that are not historical facts and are considered "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Beacon Power Corporation's current views about future events and financial performances. These forward-looking statements are identified by the use of terms and phrases such as "believe," "expect," "plan," "anticipate," and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from Beacon Power Corporation's expectation. These factors include: a short operating history; a history of losses and anticipated continued losses from operations; a need to raise additional capital combined with a questionable ability to do so; the complexity and other challenges of arranging project financing and resources for one or more frequency regulation power plants, including uncertainty about whether the Company will be successful in obtaining DOE loan guarantee support for its New York facility; conditions in target markets, including the fact that some ISOs have been slow to comply with the FERC's requirement to update market rules to include new technology such as the Company's; our ability to obtain site interconnection or other zoning and construction approvals in a timely manner; no experience manufacturing any product or supplying frequency regulation services on a commercial basis; limited commercial contracts for sales to date; the dependence of sales on the achievement of product optimization, manufacturing and commercialization milestones; the uncertainty of the political and economic climate, and the different electrical grid characteristics and requirements of any foreign countries into which Beacon hopes to sell or operate, including the uncertainty of enforcing contracts, the different market structures, and the potential substantial fluctuation in currency exchange rates in those countries; dependence on third-party suppliers; intense competition from companies with greater financial resources, especially from companies that are already in the frequency regulation market; possible government regulation that would impede the ability to market products or services or affect market size; possible product liability claims and the negative publicity which could result; any failure to protect intellectual property; including the effect of the patent litigation recently initiated against the company; retaining key executives and the possible need in the future to hire and retain key executives; the historical volatility of the Company's stock price, as well as volatility of the stock price of other companies in the energy sector. These factors are elaborated upon and other factors may be disclosed from time to time in Beacon Power Corporation's filings with the Securities and Exchange Commission. Beacon Power Corporation expressly does not undertake any duty to update forward-looking statements.