June 12, 2009 (FinancialWire) — Capstone Turbine Corp. (NASDAQ: CPST) signed a contract for its first C1000 long term factory protection plan for three C1000 systems recently shipped to Aquatec-Maxcon Pty Ltd, its distributor for the Australian market. The three unit order will soon be installed at a major coal seam gas producer in a reverse osmosis water system application.

This C1000 FPP contract is valued in excess of $2 million dollars over a 10 year period. This latest contract pushed the total FPP backlog over $11 million dollars as of May 31, 2009. Capstone launched the FPP program approximately two years ago to improve the reliability and service of its microturbine solutions. Typical FPP service contracts vary in length from a minimum of one year to a maximum of 11 years with most FPP contracts covering between five and nine years. Customer payments are generally received quarterly in advance over the term of the FPP.

“This latest contract puts the total number of C30, C65, C200 and C1000 Series microturbines under FPP contracts in excess of 400 units as of May 31, 2009,” said Shelby Ahmann, Capstone’s senior vice president of Customer Service. “Capstone’s goal is to get as many new C200 and C1000 Series products as possible into the Factory Protection Program to guarantee product performance and system reliability,” added Ahmann.

“This first C1000 FPP contract is the kilowatt equivalent of putting 100 C30’s under an FPP contract, and I am pleased with the customer response to our new C200 and C1000 Series products as we look to have as many units under FPP as possible,” stated Capstone’s president and chief executive officer, Darren Jamison. “The benefit of Capstone’s FPP program is that customers can plan for product life cycle costs and obtain optimum product performance from scheduled maintenance performed by trained technicians,” added Jamison.

The C1000 is a robust one megawatt power system, containing five Capstone C200 microturbine engines. It is configured in a single compact ISO size container and provides the same low emissions, low noise and extended maintenance benefits of Capstone’s C30 and C65 Series products.

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