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March 30, 2006: Capstone and Broad to Develop CCHP Systems

March 30, 2006
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CHATSWORTH, Calif. - Capstone Turbine Corp., a leading manufacturer of microturbine energy systems, announced that it has negotiated and signed a memorandum of understanding (MOU) with Broad USA Inc. to jointly develop combined cooling, heating, and power (CCHP) systems.

Broad specializes in the design and manufacture of absorption chillers. Broad is headquartered in Beijing, China, with its United States headquarters located in Hackensack, N.J. Its products are sold in over 30 countries, holding a greater than 50 percent market share in China as well as significant market positions in the U.S. and Europe.

"We are very pleased to announce this important business development with a company the caliber and reputation of Broad," said Capstone CEO John R. Tucker. "As one of the market leaders in absorption chillers, Broad's continuing commitment to develop quality cutting-edge technology makes them the ideal partner for Capstone. Together, we will offer an advanced combined product that will meet the growing market demand for packaged cogeneration systems."

The basis of the agreement is to synchronize the two companies to allow for market standardization of CCHP systems. According to the companies, they will utilize Broad's 20-, 40-, and 60-ton chillers, integrated with Capstone's microturbines, to create a seamless solution to maximize the chiller's heat recovery efficiency from the microturbine's waste heat.

"We have long believed Capstone MicroTurbines are the ideal technology complement to our product in the marketplace. So, we are very pleased to partner with this company whose strategy and vision for product implementation mirrors that of our own," said Jason Yang, general manager of Broad USA.

For more information on Capstone MicroTurbines, visit www.microturbine.com.

Publication date: 03/27/2006

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