Chatsworth, CA. – Pentadyne Power Corporation, a developer of flywheel power systems for applications in power quality and other advanced power applications completed the initial close of its Series B funding round in June of 2002. Nth Power, a leading venture capital firm specializing in energy technology, was the lead investor. Other investors include DTE Energy (parent company of Detroit Edison), MVV Innovationsportfolio (corporate venture capital fund of German utility MVV Energie), Angels with Attitude, and private investors. Pentadyne completed a second close in August of 2002, adding Sempra Energy to its investor group.

“We are very pleased to have secured funding, and in a short period of time to have successfully relocated our business to Chatsworth, California,” said Paul Craig, Cofounder and CEO of Pentadyne. “Our investors, led by Nth Power, bring significant financial and marketplace expertise to Pentadyne. Our new facility will serve as our production facility as we roll out beta units in response to strong and broad-based customer interest for our flywheel systems in a wide range of applications.”

“The marketplace for advanced uninterruptable power solutions is growing as customers search for systems that have performance, reliability and life-cycle cost advantages over legacy battery systems”, said Maurice Gunderson, co-founder and Managing Director of Nth Power. “Pentadyne's product is the best we've seen in this category. It offers a more advanced solution and better design over existing flywheels, with the right power density and recharge time for a wide variety of applications. Also, Pentadyne's lightweight and compact footprint gives customers flexibility in siting a UPS solution.”

Pentadyne's unique power system features a high-speed composite flywheel, fully-active magnetic bearings and an integrated vacuum system. This combination provides significant advantages over competing flywheels, including reliability, operating costs and footprint. The Pentadyne flywheel system delivers 120 kW of instant, precise electrical power for up to 20 seconds.

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 Angels with Attitude
Angels with Attitude is an active angel venture fund based in Seattle that is focused on sustainability. It has investments in energy, education, environmental technology, and sustainable agriculture.

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