Q1 FY2015 August 7, 2014

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Safe Harbor Statement This presentation contains "forward-looking statements," as that term is used in the federal securities laws, about growth and diversification of our end markets; increased production rates; strengthened distribution channels; ongoing new order flow; reduced cash usage; growth in revenue, gross margin and backlog; attaining profitability; improvement in certain key performance indicators and strategic initiatives; achievement of our EBITDA and cash goals; adequacy of capital resources; improved operating leverage; new product development; benefits from our cost reduction initiatives; opportunities in the Bakken shale play; growth of key markets; new certifications and compliance with government regulations. Forward-looking statements may be identified by words such as “expects," "objective," "intend," "targeted," "plan" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone's Form 10-K, Form 10-Q and other recent filings with the Securities and Exchange Commission that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. Because of the risks and uncertainties, Capstone cautions you not to place undue reliance on these statements, which speak only as of the date of this presentation. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events. "Capstone" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners. 1

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First Quarter FY 2015 Highlights

Revenue of $23.3 million

Gross margin of $3.4 million, or 15% of revenue

Record backlog of $175.2 million

Cash balance of $46.7 million at 6/30/14

Margin Growth

3

-3%

2%

8%

14% 15%

-5%

0%

5%

10%

15%

20%

1Q11 1Q12 1Q13 1Q14 1Q15

Year-Over-Year 1Q Gross Margins

Seventh Consecutive Quarter of Double-Digit Gross Margin.

First Quarter FY 2015

4

1Q15 ended 6/30/14

Quarter-over-

Quarter

Year-over-Year

Revenue $23.3 M -36% -5%

Product revenue $17.6 M -41% -13%

Gross margin 15% -200 bps +100 bps

R&D expense $2.3 M -8% Flat

SG&A expense $7.8 M +15% +3%

Net loss ($6.8 M) +100% Flat

Megawatts and Units Shipped

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C1000 34%

C200 13%

C65 26%

C30 4%

C600 17%

C65 26%

C30 4%

Sales (MW)

C1000 5%

C800 1%

C600 4%

C200 9%

TA100 1%

C65 58%

C30 22%

Sales (Units)

17.9 MW, down 5%

YOY

125 Units, down 28%

YOY

Liquidity and Capital Resources

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Balance Sheet 6/30/14 3/31/14

Cash and cash equivalents $46.7 M $27.9 M

Accounts receivable $24.2 M $28.0 M

Inventories $25.4 M $21.0 M

Inventory turns 3.4 5.3

Cash Flows 1Q15 1Q14

Cash used in operating activities $9.1 M $15.9 M

Capital expenditures $0.2 M $0.3 M

Strong balance sheet with minimal debt.

Product Backlog

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$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 1Q2015

$175.2

$ millions

$5.0

Backlog has grown at a 66% annual rate over the last 7 years

Global Market Segments

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Energy Efficiency

XX%

Oil, Gas & Other XX%

Renewable Energy

XX%

Critical Power Supply <1%

Transportation Products <1%

Vertical Markets by Product Shipments

Natural Resource

Applications 62%

Energy Efficiency

32%

Critical Power Supply / Mobile

1% Renewable

Energy 5%

North America 52%

Europe 33%

Asia 8%

Other 2%

Australia 5%

Geographic Markets by Revenue

Microturbine Q1 Shipments by MW

9

Bakken Shale Area

10

Energy Efficiency

XX%

Oil, Gas & Other XX%

Renewable Energy

XX%

Critical Power Supply <1%

Transportation Products <1%

Renewable Energy

5%

Other 6%

Australia 4%

Vergent Power Solutions is a new distributor taking on the Bakken Shale Area in North Dakota

As of 2013, Bakken produced more than 10% of all U.S. oil production

The Bakken shale area produces an abundance of gas flaring

Capstone Microturbines are an ideal solution for flare gas

Research & Development • Strategic public/private partnership with the

DOE to develop next generation products – Finalizing C370 architecture – Successfully completed 3000 hour elevated

temperature test with AFA material

• New European regulatory changes for grid interconnection – Initial certifications planned later this year