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Beacon Power Sells Flywheel UPS Systems to TLER Associates of Mexico

10 February 2000

SatCon Subsidiary Beacon Power Corporation Sells Flywheel UPS Systems to TLER Associates of Mexico; First Production Order is for 100 Systems and is Valued At $1.5 Million.

    CAMBRIDGE, Mass.--Feb. 10, 2000--SatCon Technology Corporation(R) (Nasdaq NM:SATC), a leader in power and energy management products, today announced that its spin-off division, Beacon Power Corporation, received its first production order for 100 flywheel energy storage systems from TLER Associates in Mexico. These systems are Beacon's first flywheel energy storage systems to be installed in an actual residential community to support an operational telephone system.
    TLER Associates is involved in the major development and financing of high volume housing in Mexico, and has selected Beacon Power's Flywheel Energy Storage Systems to provide the back-up power for the telephone systems for the first 15,000 of an initial build of 100,000 homes. The first production order of 100 systems will be used in conjunction with TelMex and other Mexican telephone companies to provide reliable telephone service.
    "We're very excited about this, our first production order," said David Eisenhaure, SatCon's President and Chief Executive Officer. "It demonstrates that our flywheel UPS systems are gaining international recognition as the alternative to the lead- acid battery systems currently available. We have been working with telephone and cable television service providers here in the United States and have successful field trials currently in progress. The positive results of those trials have enabled us to build and sell production units of our flywheel storage systems to TLER."
    "We have also been discussing the use of flywheels for other distributed power generation systems as well," continued Eisenhaure. "We have a strong relationship with Duquesne Enterprises , who has been involved with Beacon Power for some time. Thomas Hurkmans, the President of Duquesne Enterprises, is on the Board of Directors at SatCon, and Duquesne Enterprises is a strategic investor in both SatCon and Beacon Power. They are also a strategic investor in H Power for whom SatCon is building fuel cell power converters. We are in discussions with a number of fuel cell manufacturers about the possibility of using flywheels to replace batteries in their residential and commercial fuel cell power generation systems."
    "Flywheels are an ideal replacement for batteries because they can operate more reliably, require less maintenance, are longer lived, can be remotely monitored, and are also more environmentally friendly. With the success of its field trial programs, refined product designs based on operational experience, competitive advantages in proprietary technology, and significant telecommunications customers, Beacon is particularly well positioned for this multi-billion dollar market that includes electric utilities, telephone and cable television service providers, and on-site power generation," concluded Eisenhaure.
    SatCon Technology Corporation manufactures and sells power and energy management products for distributed power generation, telecommunications, silicon wafer manufacturing, factory automation, aircraft, satellites and automotive applications. SatCon has seven operating divisions: Advanced Fuel Cell Power Products manufactures and sells power conversion products for fuel cell power generation systems; Film Microelectronics, Inc. designs and manufactures microelectronic circuits and interconnect products; Magmotor manufactures servo-motors and magnetic suspension systems; Ling Electronics manufactures test equipment, power products, amplifiers and controllers; Beacon Power manufactures flywheel energy storage devices; SatCon Electronic Power Products manufactures power converters for microturbines; and the Technology Center is responsible for new technology and product development. For further information, please visit the SatCon Technology Website at http://www.satcon.com.

    Statements made in this document that are not historical facts or which apply prospectively are forward-looking statements that involve risks and uncertainties. It is important to note that the Company's actual circumstances could differ materially from those implied by such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's filings, including but not limited to the 10-K and 10-Q. Copies of those filings are available from the Company and the SEC.