Beacon Power Corp. : Beacon Power Flywheel Plant Wins International Technology Award

December 6, 2011

Tyngsboro, Massachusetts, December 6, 2011 - Beacon Power Corporation's 20-megawatt flywheel energy storage plant in Stephentown, New York, has won the 2011 Technology Award given by the UK-based Energy Institute. The award was announced at the Energy Institute's 12th Annual Awards event in London. It was shared with the global engineering and development firm Mott MacDonald, which designed the substation for the Stephentown plant.

The Technology Award judging criteria were: a) inventive new technology or implementation of existing technology; b) commercial viability for wider adoption and application; and c) strength of the team of engineers and developers involved. The most recent winners of this award include the University of New South Wales and Suntech Power Holdings; Energy Systems Research Unit; and Mitsubishi Electric.

Sarah Beacock, Professional Affairs Director of the Energy Institute, said, "This year's EI Awards broke the record for entries since the launch of the competition in 1999, and their quality made judging particularly challenging. The energy sector is dynamic and forward-thinking, and these awards provide industry with an opportunity to recognize and reward organizations and individuals who demonstrate such dynamism and forward-thinking on a daily basis. We thank all the participants for the important contribution they make to the energy sector and, by extension, to society."

More information about the Energy Institute and the annual awards can be found on their website .

About the Energy Institute
The Energy Institute (EI) is the professional body for the energy industry, delivering good practice and professionalism across the depth and breadth of the sector. A Royal Chartered membership organization, the EI supports around 15,000 individuals and 250 companies across 100 countries, serving society with independence, professionalism and a wealth of expertise in energy matters. The purpose of the EI is to develop and disseminate knowledge, skills and good practice towards a safer, more secure and sustainable energy system. In fulfilling this purpose the EI addresses the depth and breadth of energy and the energy system, from upstream and downstream hydrocarbons and other primary fuels and renewables, to power generation, transmission and distribution to sustainable development, demand side management and energy efficiency.

About Mott MacDonald
Mott MacDonald is a global management, engineering and development consultancy with more than 14,000 staff, £1 billion revenue and work in 140 countries for the public and private sectors. The employee-owned company is ranked 13th in the 2011 Sunday Times 25 Best Big Companies to Work For survey and was awarded Engineering Consultant of the Year at the 2011 Building Awards. Mott MacDonald's core business sectors cover buildings, transport, energy, water, environment, health, education, industry, oil and gas, communications and international development.

About Beacon Power Corporation
Beacon Power Corporation designs, develops and is commercializing advanced products and services to support stable, reliable and efficient electricity grid operation. Beacon's Smart Energy MatrixTM, now being operated and earning revenue, is a non-polluting, megawatt-scale, fast-response flywheel-based solution designed to provide less expensive, more sustainable and effective regulation services to power grids around the world. The Company's business strategy is both to supply regulation services from its own plants and to sell systems directly to utilities or grid operators in parts of North America and selected international markets. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S. For more information, visit www.beaconpower.com.

Forward-Looking Information Disclaimer
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the anticipated benefits of our settlement with the LPO as evidenced by the court order, expectations regarding the sale of the Stephentown facility and our other assets and our ability to attract new capital, expectations regarding our continued use of cash collateral and the benefits provided by our professionals' agreement to defer fees, and anticipated advantages regarding the services Beacon Power Corporation provides to the Stephentown facility. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various factors, risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward-looking statements, including, but not limited to risks associated with selling assets during bankruptcy, including without limitation the risks that we may fail to execute any such sale in a timely manner or at all and that we cannot predict the amount of proceeds received in any such sale; risks associated with raising new capital during a bankruptcy, including without limitation the risk that any such capital investment will be made in a timely manner, or at all; and risks associated with the terms and conditions included in the court's order. Additional risks and uncertainties include: (i) the potential adverse impact of the bankruptcy cases on our business, financial condition or results of operations, including our ability to maintain contracts and other customer and vendor relationships that are critical to our business and the actions and decisions of our creditors and other third parties with interests in our bankruptcy cases; (ii) our ability to maintain adequate liquidity to fund our operations during the bankruptcy cases and to fund a plan of reorganization and thereafter, including maintaining normal terms with our vendors and service providers during the bankruptcy cases and complying with the covenants and other terms of our financing agreements; (iii) our ability to obtain court approval with respect to motions in the bankruptcy cases prosecuted from time to time and to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the bankruptcy cases and to consummate all of the transactions contemplated by one or more such plans of reorganization or upon which consummation of such plans may be conditioned; (iv) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the Chapter 11 bankruptcy cases to Chapter 7 cases; (v) those factors identified in our filings with the Securities and Exchange Commission as may be accessed at .

The risks and uncertainties and the terms of any reorganization plan ultimately confirmed can affect the value of our various pre-petition liabilities, common stock and/or other securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of our liabilities and/or securities receiving no value for their interests. Because of such possibilities, the value of these liabilities and/or securities is highly speculative and will pose substantial risks. Trading prices for the Company's common stock may bear little or no relationship to the actual recovery, if any, by holders thereof in the bankruptcy cases. Accordingly, the Company urges extreme caution with respect to existing and future investments in its common stock. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our view only as of the date of this Statement, and which we assume no obligation to update.

Media Contact:
Gene Hunt
Director of Corporate Communications
Beacon Power Corporation
1-978-661-2825
[e-mail]