Pentadyne, Maker of New Flywheel Power System, Enters Into Distribution Agreement for Power Quality and Distributed Generation Applications in Germany

Chatsworth, Calif. – March 29, 2004 –Pentadyne Corporation has entered into a distribution agreement with EUS GmbH, headquartered in Dortmund, Germany, to deliver two of its revolutionary new Voltage Support Solution™ (VSS 120) flywheel power systems to be used in parallel with UPS and microturbine applications. Both projects are being financed by the local German government of North Rhine-Westphalia and the European Union. EUS and Pentadyne also entered into a value-added reseller (VAR) agreement for distributing the Pentadyne VSS products in Germany.

In the second quarter (2Q 2004), Pentadyne will install a VSS 120 unit in Germany to demonstrate how the flywheel power system can replace batteries in a UPS unit to improve reliability and costs associated with short battery life spans. In a separate distributed generation (DG) demonstration in Oberhausen, Germany, the VSS 120 will work in tandem with a microturbine to provide voltage stabilization during off-grid operation.

“Our agreement with EUS enables Pentadyne to show how our flywheel power system can provide a cost-effective alternative to batteries in UPSs as well as provide effective ride-through in DG applications,” said Paul Craig, CEO of Pentadyne Power Corporation. “We are excited to combine efforts with EUS in Germany, which will in turn demonstrate our product’s viability in the worldwide power quality market.”,

Pentadyne’s flywheel system provides a stable, reliable, low maintenance, extended-life DC voltage source to either replace or supplement batteries in UPS systems. During a grid disturbance, the VSS 120 can provide sufficient ride-through for an orderly system shutdown or until a standby engine-generator can come on-line. When used with distributed generation systems in off-grid applications, the VSS provides voltage stabilization during changing load conditions. When connected to most European UPS models, a single Model VSS 120 provides sufficient power to support loads up to 120 kVA. Multiple VSS units in parallel provide economic ride-through for power levels up to 2 MW.

About Pentadyne Power Corporation:

Pentadyne designs, manufactures and markets advanced flywheel power systems that provide high quality, reliable power for power quality sensitive customers, urban rail power recycling, and urban transportation. Whether integrated into other products or used alone, Pentadyne’s flywheel systems provide an economic, long lasting, low maintenance, lightweight and environmentally sound power solution for a range of applications. A number of leading venture capital groups and industry players back Pentadyne including Nth Power, DTE Energy, MVV Innovations, Sempra Energy, Electricité de France and Ben Rosen (co-founder of Sevin Rosen and Chairman emeritus of Compaq Computer). For more information, please visit Pentadyne.com or contact the representatives below.

About EUS GmbH:

EUS integrates energy technology with information technology to provide solutions for its industrial and commercial customers and helps them put those technical innovations into practice. EUS areas of expertise include: industrial process automation; engineering services; and energy forecasting, monitoring, and controls software development. EUS is a subsidiary of MVV Energy AG, a utility and energy services company headquartered in Mannheim, Germany.

For More Information Contact:
David Townley
Senior Vice President Marketing and Sales
Pentadyne Power Corporation
20750 Lassen Street
Chatsworth, CA 91311
(818) 350-0370
Fax (818) 350-0382
Email: DavidTownley@pentadyne.com

Greg Evans (Agency Support)
President, Account Executive
WelComm, Inc.
7975 Raytheon Rd., Ste 340
San Diego, CA 92111
(858) 279-2100
Fax: (858) 279-5400
Email: Greg@welcomm.com