VAN NUYS - Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ: CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it secured an order for a global hotel chain for three C65 ICHP microturbines to be installed in one of its hotels in Northern California.

Cal Microturbine, Capstone's exclusive distributor in California, Hawaii and Nevada, and non-exclusive in Washington and Oregon (www.calmicroturbine.com), secured the order, which is expected to be commissioned this spring.

Three low-pressure natural gas-fueled C65 ICHP microturbines will provide up to 195 kilowatts (kW) of power and 1.2 MMBTU/hr of hot water to offset utility power purchase and boiler natural gas use. The microturbine array will be installed in a combined heat and power (CHP) application resulting in increased efficiency, helping the hotel achieve the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) certification.

The global hotel chain is a leader in the eco-innovation space and continues to pilot the adoption of clean energy across its portfolio of hotel brands. With an increased focus on transformative sustainability practices, hotel operators selected Capstone's low emission microturbine technology for its ability to reduce their carbon footprint and offset high utility costs.

According to Hospitality & Catering News, 'Eco-consciousness is on the rise in the hospitality industry. Guests are looking for sustainable and authentic experiences, and luxury hotels are going green as millennials demand sustainable travel options.'

'The hospitality industry has evolved substantially over the last several years. Today LEED certification with energy efficiency measures, low emission on-site power generation, eco-friendly building materials, waste reduction, and local sustainability practices are quickly becoming the rule, not the exception,' said Darren Jamison, President and CEO of Capstone Turbine. 'It's not surprising with an estimated 30-40% of the world's population having grown up with climate change as part of everyday life. As this new generation becomes a more significant part of the global consumer base, its unsurprisingly going to drive business to shift to green,' added Mr. Jamison.

'Capstone's C65 ICHP units have nearly 20 years of proven fielded experience across thousands of installations, this experience has made the C65 ICHP unit a gold standard among the sub 600 kW distributed energy technology space,' said Marc Rouse, Vice President of Sales for Cal Microturbine. 'The C65 ICHP is truly a plug and play combined heat and power replacement for traditional boiler units, providing our customers significant operating cost savings with very little operator interaction,' concluded Mr. Rouse.

The modular design also allows all three microturbines to operate continuously, even during times of maintenance. Because each unit has only one moving part, such maintenance costs are dramatically lower than those required for more traditional power generation systems. The addition of acoustic inlet hoods reduces package sound ratings to those of standard boiler systems.

Capstone systems can provide a significant improvement in energy efficiency for operators and allow them to meet a shift to green in consumer preference towards sustainable hospitality operations. Hotel operators looking to gain control of their energy costs and reduce hotel greenhouse gas emissions can benefit from Capstone's combined heat and power microturbine to generate on-site heat and power to significantly reduce operating expenses and increase resiliency.

About Capstone Turbine Corporation

Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) is the world's leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup, via our direct sales team, as well as our global distribution network. Capstone provides scalable solutions from 30 kWs to 10 MWs that operate on a variety of fuels and are the ideal solution for today's multi-technology distributed power generation projects.

Forward-Looking Statements

This press release contains 'forward-looking statements,' as that term is used in the federal securities laws. Forward-looking statements may be identified by words such as 'expects,' 'believes,' '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.

Contact:

Tel: 818-407-3628

Email: ir@capstoneturbine.com

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