Chatsworth, CA – October 20, 2004 – Pentadyne Power Corporation, a provider of advanced flywheel power systems, announced today that it completed an initial close of its Series C financing round for $8 million. Investors in the round included Nth Power, DTE Energy Ventures, Accera Venture Partners, Sempra Energy and other private investors. Pentadyne will use the funds to expand its product commercialization efforts through leading distribution channel partners, including Emerson Network Power/Liebert, one of the world’s largest providers of uninterruptible power supplies (UPS).

“We are extremely pleased to have the continued support from some of the most recognized energy technology investors in the industry,” said Paul Craig, President and CEO of Pentadyne. “Pentadyne is now in a position to ramp up production to meet customers’ needs in multiple market applications through world-class distribution channel partners.”

“Pentadyne is establishing itself as a leading supplier of advanced energy solutions, and we are backing a visionary team,” said Maurice Gunderson, Managing Director of Nth Power. “The demand for high-quality power and reliable power supplies is growing rapidly, and Pentadyne’s innovative product design and performance attributes will give it an edge in that market.”

Last week at the Emerson Network Power Incredible Universe trade show, Emerson introduced the Liebert FS Advanced Flywheel Energy Storage System, a kinetic energy system based on the Pentadyne flywheel that augments or replaces lead-acid batteries in Liebert UPS products. The Liebert FS is designed to support larger Liebert UPS systems, including the Liebert Npower, Series 300 and Series 610 models. It provides backup power to ride through short interruptions and enables transition to a backup generator. A single flywheel can be sized to support UPS systems up to 150 kVA. Multiple flywheel systems can operate in parallel to support larger systems.

About Pentadyne Power Corporation (www.pentadyne.com)
Pentadyne designs, manufactures and markets advanced flywheel power systems that provide high-quality, reliable power for uninterruptible power supply, industrial drive, energy recycling and micro-grid applications. 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. Pentadyne is backed by leading venture capital groups and industry players including Nth Power, DTE Energy Ventures, Accera Venture Partners, 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.

For More Information Contact:

Flint R. Craig
Senior Vice President and CFO
Pentadyne Power Corporation
20750 Lassen Street
Chatsworth, CA 91311
(818) 350-0370
Fax (818) 350-0382
Email: FlintCraig@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