Chatsworth, Calif. – August 8, 2002 – Pentadyne Power Corporation, developer of flywheel power systems for power quality, distributed power and power recycling applications, announces the recent move of its operations to a new location in Chatsworth, California. The new 26,000 square foot facility will house Pentadyne’s corporate offices, engineering and manufacturing, and marks a significant step forward in the company’s product and market development strategy. Pentadyne’s advanced flywheel technology, under development for nine years, will be officially introduced in 2003. Paul Craig, Pentadyne’s President & CEO and former President & CEO of Capstone Turbine Corporation, acquired the flywheel technology and founded Pentadyne in 1998 when he recognized the need for applying the advanced energy storage technology to commercial and industrial markets. “The new Chatsworth facility will allow us to produce products for power quality applications that demand safer, cleaner and more economical ride-through solutions in the near-term,” said Mr. Craig. “Our expanded operations will also make it possible for Pentadyne to support distributed power and power recycling applications.”

About Pentadyne

Pentadyne designs, manufactures and markets advanced flywheel power systems that provide high quality, highly reliable electricity for power-sensitive customers in today’s digital economy. Pentadyne’s flywheel systems are long lasting, low maintenance, lightweight, and environmentally sound alternatives to conventional batteries. Pentadyne is backed by leading venture capital groups and industry players including Nth Power, DTE Energy, MVV Innovationsportfolio, Sempra Energy, Angels with Attitude, Ben Rosen (co-founder and Chairman emeritus of Compaq Computer) and Electricite de France (the world’s largest electric utility).

About Nth Power

Nth Power is a leading venture capital firm dedicated exclusively to high potential investments resulting from the restructuring of the global energy industry. Nth Power currently manages over $200 million invested in more than 20 companies. Nearly 10 years after its formation, Nth Power continues to provide Energy, Vision and Capital to entrepreneurs seeking to take advantage of the high-growth potential that this expanding market now offers.

About DTE Energy

DTE Energy's subsidiary, Detroit Edison, is the nation's 7th largest electric utility, supplying energy to 2.1 million customers in Southeastern Michigan. Another of its utility subsidiaries, MichCon, is the nation's 10th largest natural gas local distribution company serving 1.2 million customers across Michigan. Together, these operations create a leading energy provider with assets of more than $17 billion. Expanding its reach, DTE Energy also develops and invests in emerging energy technologies such as distributed generation. Its vision is to become the pre-eminent supplier of integrated distributed generation solutions.

About MVV Innovationsportfolio

MVV Innovationsportfolio is the US$ 40 million corporate venture capital fund of MVV Energie AG, one of the largest utilities in Germany with Euro 1.2 billion in sales and over 3500 employees. Since going public in 1999, MVV has become known as one of the most innovative and successful enterprises in the German energy industry. Understanding that investments in key technologies will aid in ensuring success both now and in the future, MVV is focused on cutting-edge technologies, such as renewable energy, energy distribution and storage, energy management and telecommunications technologies.

About Sempra Energy

Sempra Energy’s subsidiary, SoCalGas, is the nation’s largest natural gas distribution company, serving 18 million customers throughout Southern California and parts of central California. Another of its utility subsidiaries, San Diego Gas & Electric, is the leading electric utility in San Diego County and southern Orange County. Together, the two utilities serve 21 million customers. Supporting its core utility business, Sempra Energy also identifies, develops and invests in emerging energy technologies.

About Groupe Electricité de France

EDF is the world's largest utility, operating a diverse portfolio of 100,000+ megawatts of generation capacity in Europe, Asia, Latin America and Mexico, Africa and the Middle- East and serving about 45 million direct customers worldwide in Europe, Argentina, and Brazil notably. EDF’s goal is to invest in emerging technology companies in order to form mutually beneficial long term partnerships.

For additional information, contact:
Flint R. Craig
Chief Financial Officer
Pentadyne Power Corporation
20750 Lassen Street
Chatsworth, CA 91311
Tel: 818-350-0370
Fax: 818-350-0383
flintcraig@pentadyne.com