To: ACAN who wrote (14960 ) 1/31/2006 8:40:15 AM From: Galirayo Read Replies (2) | Respond to of 23958 Capstone and Broad Sign MOU for Business Development Tuesday January 31, 8:01 am ET CHATSWORTH, Calif.--(BUSINESS WIRE)--Jan. 31, 2006--Capstone Turbine Corporation® (www.microturbine.com; Nasdaq:CPST - News), the world's leading manufacturer of microturbine energy systems, today announced that it has negotiated and signed a Memorandum of Understanding (MOU) with Broad USA, Inc. to jointly develop fully integrated cogeneration (CCHP) systems. ADVERTISEMENT Broad specializes in the design and manufacture of absorption chillers powered by clean and recyclable energies. Broad is headquartered in Beijing, China, with its U.S. headquarters located in Hackensack, N.J. Their products are sold in over 30 countries, hold a greater than 50% market share in China and are market leaders in absorption chilling in the United States and Europe. "We are very pleased to announce this important business development with a company the caliber and reputation of Broad," said Capstone CEO John R. Tucker. "As one of the market leaders in absorption chillers, Broad's continuing commitment to develop quality cutting edge technology makes them the ideal partner for Capstone. Together, we will offer an advanced combined product that will meet the growing market demand for packaged cogeneration systems." The basis of the agreement will synchronize the two companies to follow Capstone's "cookie-cutter" concept for market standardization of on-site power and CHP solutions. The companies will utilize Broad's 20, 40 and 60 ton chillers, integrated with Capstone's microturbines to create a seamless solution to maximize the chiller heat recovery efficiency from the microturbine's waste heat. This significant initiative reflects a new level of industry cooperation in the sale and servicing of these combined turbine/chiller system solutions. "We have long believed Capstone MicroTurbines are the ideal technology complement to our product in the marketplace. So, we are very pleased to partner with this company whose strategy and vision for product implementation mirrors that of our own," said Jason Yang, General Manager of Broad USA. About Capstone Turbine Capstone Turbine Corporation (www.microturbine.com) (Nasdaq:CPST - News) 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 3,200 Capstone MicroTurbine® systems to customers worldwide. These award-winning systems have logged more than 10 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. Forward-looking statements may be identified by words such as "expect," "believe" and similar phrases. These statements are subject to the execution of a definitive agreement and 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. Contact: Capstone Turbine Corporation General Media: Keith Field, 818-407-3615 or Investor and Investment Media: Alice Barsoomian, 818-407-3628 -------------------------------------------------------------------------------- Source: Capstone Turbine Corporation