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FuelCell Energy Awarded Patent For Its High Efficient Direct FuelCell/Turbine System

a developer and manufacturer of Direct FuelCell(R) (DFC(R)) power plants, announced today that it has received U.S. patent, #6,365,290, titled, "High Efficiency Fuel Cell System," for its combined cycle Direct FuelCell/Turbine (DFC/T(R)) power plant.

FuelCell Energy Inc. (Nasdaq: FCEL), a developer and manufacturer of Direct FuelCell(R) (DFC(R)) power plants, announced today that it has received U.S. patent, #6,365,290, titled, "High Efficiency Fuel Cell System," for its combined cycle Direct FuelCell/Turbine (DFC/T(R)) power plant.

The patent award is for a fuel cell system in which a fuel cell and a heat engine, such as a gas turbine, are combined. In the patented DFC/T system, the fuel cell power is augmented by a gas turbine using the byproduct heat of the fuel cell. The supplemental turbine power increases the efficiency and reduces the cost of the power generated without using additional fuel. The combined system does not require any combustion in the turbine and the patent covers both external and internal reforming fuel cells. The company expects the DFC/T to approach the 75 percent efficiency goal as specified by the Department of Energy's Vision 21 program while retaining the ultra-low emissions attribute of the company's DFC power plants.

"The ultra-high efficiency combined cycle fuel cell/turbine power system is capable of producing electricity at efficiencies much greater than presently available, resulting in significantly reduced fuel requirements for power generation" said Jerry D. Leitman, president and CEO of FuelCell Energy Inc.

The company is targeting this technology for the larger distributed generation market, focusing on 10 to 50 megawatt power plants to supplement the utility infrastructure for grid congestion and load pockets, and larger-scale onsite generation projects for commercial and industrial customers.

In July 2001, FuelCell Energy commenced a proof of concept of its DFC/T power plant based on a 250 kW DFC power plant integrated with a Capstone Turbine Corp. modified Model 330 Microturbine. The company is planning to test a Capstone C60 Model Microturbine that it expects will increase the efficiency of the 250 kW power plant.

The proof-of-concept testing results to date have verified the operability of the system and further testing will provide additional information for the design of a 40 MW DFC/T power plant.

The U.S. Department of Energy through its Office of Fossil energy is funding the first-of-a-kind test of the high efficiency DFC/T power plant. The National Energy Technology Laboratory, as part of the DOE's Vision 21 program, manages the cooperative agreement.

Additional information on FuelCell Energy's DFC/T can be found on its web site at The full text of the patent can be found at The United States Patent and Trademark Offices' website at

About Direct FuelCells

Direct FuelCells generate electricity with no combustion. They are, in effect, like large, continuously operating batteries that generate electricity as long as fuel, such as natural gas, is supplied. Since the fuel is not burned, there is no pollution commonly associated with the combustion of fossil fuels. Also, the high efficiency leads to more electric power from less fuel and with less carbon dioxide emissions. In many states, fuel cells are being classified as the equivalent of renewable technologies such as wind and solar.

About FuelCell Energy, Inc.

FuelCell Energy Inc. (, Danbury, Conn., is a world-recognized leader for the development and commercialization of high efficiency fuel cells for electric power generation. The Company is developing Direct FuelCell(R) technology for stationary power plants with the U.S. Department of Energy through the National Energy Technology Laboratory, whose advanced fuel cell research program is focused on developing a new generation of high performance fuel cells that can generate clean electricity at power stations or in distributed locations near the customer, including hospitals, schools, universities and other commercial and industrial applications.

About Capstone Turbine

Capstone Turbine Corp.(; Nasdaq: CPST) is the world's leading producer of very-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. Capstone Turbine has sold and shipped 2,000 commercial production Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than 1.5 million hours (170 years) of operation serving, among others, the following applications: Hybrid electric vehicles (HEVs): onboard generation Resource recovery: converting oilfield, landfill and sewage waste gases into electricity Micro-cogeneration: combined heat/power/chilling/drying solutions The 9s market: power security, quality and reliability This press release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.

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