Cummins Signs Development Agreement with Capstone Turbine; Leading Engine Manufacturer to Market Its Own Line of Capstone-Powered Energy Systems
CHATSWORTH, Calif.--April 30, 2001--Cummins Incorporated (www.cummins.com) has signed an 3-year agreement with Capstone Turbine Corporation (www.microturbine.com) to develop and market Capstone MicroTurbine driven stationary power systems of Cummins' design.Cummins will work in conjunction with Capstone Turbine in the development of new Cummins products with the insignia "Powered by Capstone MicroTurbine." Cummins expects to have such OEM systems on the market later this year. In addition to North America, Cummins has a strong presence in developing nations such as China, India and Brazil. Cummins intends to sell these new products worldwide, with the exclusion of Mexico and Japan.
Cummins Power Generation is a global supplier of diesel and natural gas powered generator sets, power electronics and generator set components from 5 kilowatts to multi-megawatt installations. Cummins states that they are the North American market leader in auxiliary generator sets for recreational vehicles and recreational marine applications. In 2000, sales were $1.4 billion. Cummins Power Generation has a worldwide network of 500 distributorships and branches.
Capstone MicroTurbine power systems utilize a newer technology to generate electricity and usable heat with very low emissions from a variety of fuel sources, including natural gas, propane, diesel, kerosene and low-grade unprocessed "waste" gases from landfills, oilfields, sewage treatment plants and agricultural digesters.
"These low-maintenance Capstone MicroTurbine power systems have demonstrated real-world reliability with more than a half-million hours of aggregated operation," said Jack Edwards, President of the Cummins Power Generation and Executive Vice-President of Cummins Inc. "This agreement capitalizes on the strengths of two market leaders. Capstone's technology combined with Cummins Power Generation worldwide market presence and generator packaging expertise creates a complementary product line that offers tremendous value to our customers."
"This endorsement and adoption of the Capstone MicroTurbine technology by one of the world's leading engine manufacturers is very significant," said Dr. Ake Almgren, President and CEO of Capstone Turbine. "We see our technology as complementary to that or traditional reciprocating engines. This agreement is an important recognition that our unique approach to clean engine technology is viable."
About Cummins
Cummins Incorporated (www.cummins.com) , headquartered in Columbus, Indiana, is the world's largest producer of commercial diesel engines above 50 horsepower. The company provides products and services for customers in markets worldwide for engines, power generation and filtration. In 2000, Cummins reported record sales of $6.6 billion.
About Capstone Turbine
Capstone Turbine Corporation (www.microturbine.com) -- winner of Financial Times Energy's (www.ftenergy.com) 2000 Global Energy Award for Most Innovative Commercial Technology -- is a leading producer of low-emission microturbine systems. In 1998, Capstone was the first to offer commercial power products utilizing microturbine technology, the result of more than ten years of focused research. Worldwide, more than 1,000 commercial production Capstone MicroTurbine systems serve, among others, the following applications:
| -- | Hybrid electric vehicles (HEVs): onboard generation |
| -- | Resource recovery: converting oilfield and biomass waste gases into electricity |
| -- | Micro-cogeneration: combined heat/power/chilling solutions |
| -- | The 9s market: power quality and reliability |
This news release contains "forward-looking statements," as that term is used in the federal securities laws, about Capstone's business, including statements regarding third-party purchase/distribution plans. You can find many of these statements by looking for words such as "believes," "expects," anticipates," "estimates," "we see" or similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. These risks and uncertainties include those risks, uncertainties, marketplace competitors and risk factors identified, among other places, under "Risk Factors" in Capstone's registration statement on Form S-1, SEC File No. 333-48524 and in Capstone's Annual Report on form 10-K for the year ended December 31, 2000. Capstone cautions you not to place undue reliance on these statements, which speak only as of the date of this release. Capstone undertakes no obligation to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Note: Information on the FT Energy Award noted above is at http://www.microturbine.com/whatsnew/pressrelease.asp?article=56
Note: High-resolution photos available at: http://www.microturbine.com/whatsnew