CHATSWORTH, CALIF - August 5, 2002 - Leading microturbine power systems manufacturer Capstone Turbine Corporation (www.microturbine.com; Nasdaq: CPST) today announced the establishment of a distribution relationship with Samsung Corporation (www.samsungcorp.com) for sales, installation and service of Capstone's onsite microturbine energy generation systems in South Korea.

Samsung Corporation is Capstone Turbine's first distributor in South Korea. In addition to its renowned consumer electronics and a vast range of other business activities, Samsung Corporation is engaged in energy services management for commercial and industrial customers throughout South Korea.

With electronics being its primary export, South Korea is among the most technically advanced nations in Far East Asia and enjoys a growing economy. Industrial sector energy consumption in South Korea quadrupled between 1985 and 1997, and total electricity consumption is projected to double by 2020, according to the US Energy Information Administration (www.eia.doe.gov). The South Korean government has enacted a Comprehensive Plan for Environmental Improvement to reduce pollutants and greenhouse gas emissions. South Korea's national power company, Kepco (www.kepco.co.kr), is currently undergoing restructuring and privatization.

"We believe that that these combined circumstances are favorable for distributed generation technologies," K. D. Kim, Managing Director of the Machinery & Electronics Division of Samsung Corporation, said during a recent visit to the Los Angeles area facilities of Capstone Turbine. "The very low nitrogen oxide emissions and very high combined-heat-and-power fuel efficiency of Capstone MicroTurbines would prove advantageous to these market conditions. Capstone systems offer many other exclusive attributes that can further enhance market acceptance."

"One of Capstone's goals is to expand on our success in Japan and leverage that into other Asian regions," said Hal Koyama, Senior Vice-President of Sales and Marketing at Capstone. "We see this as a strong beginning both in Korea and with a major international corporation. We are pleased that, after much evaluation, Samsung Corporation has selected Capstone MicroTurbines to be placed with their other world-renowned products. Samsung clearly understands new technology products and market development for those products. It is a point of great honor and excitement that they have chosen our microturbine systems for their distribution plans in South Korea."

Samsung Corporation plans to market Capstone MicroTurbines in combined cooling/heating/power installations, in which the microturbine exhaust heat is used for water and building heating, as well as absorption chilling. Absorption chillers create air conditioning from heat input, rather than electricity. Samsung further intends to sell into power reliability applications as well as landfills and sewage plants, where biogases can be used as sources of free, renewable fuel for continuous power and heat generation.

Capstone MicroTurbines, which have only one moving part and use no liquid lubricants or coolants, provide power and heat for onsite use at commercial, industrial and municipal buildings around the world. Capstone products can serve loads from a few kilowatts up to a few megawatts.