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Capstone Turbine Corp (CPST) Receives $1.5 Million Order from PEMEX

Capstone Turbine Corp (CPST:NASDAQ) is the world’s leading producer of low-emission microturbine systems. The company was the first to market with commercially viable microturbine energy products. The Capstone MicroTurbine has been used in various applications such as supplying cheap, clean power to all types of buildings, use in hybrid electric vehicles, use in biogas plants, and uses in the oil and gas industry.

On June 16, 2008, Capstone Turbine received an approximately $1.1 million order for new mictroturbine systems to be deployed on a PEMEX offshore oil platform. PEMEX is the state oil company of Mexico. Capstone Turbine produces the world’s only microturbine solution that meets all the stringent requirements needed for an offshore oil platform, such as being corrosion-resistant, highly reliable, and with very low maintenance requirements.

Capstone Turbine continues to increase their market presence in the oil and gas sector with PEMEX becoming the company’s third largest customer in this sector behind Petrobras of Brazil and Gazprom of Russia. Capstone Turbine is looking to expand their presence in this sector with new products which the company believes will allow them to win contracts for use in the larger, manned offshore platforms along with onshore compression and pumping stations.

Capstone Turbine’s growing presence as a supplier to the oil and gas industry, among other industries, has led to a brightening outlook for the company. In the company’s latest earnings report released June 12, 2008, the company showed an increase in revenues of 60%. The true bright spot in the report was Capstone’s backlog for the current fiscal year, which skyrocketed 458 percent to nearly $28 million – higher than the company’s total revenue for 2007 of $21 million. Recently announced orders of $7 million were not reflected in the reported backlog. It is no wonder that investors have become optimistic about the company’s future. Capstone Turbine’s stock has moved from under $2 at the beginning of 2008 to over $4 a share.

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