Active Power Receives Order for First Parallel Multi

Active Power Receives Order for First Parallel Multi-Megawatt UPS System; New High Power UPS System Orders Surpass 10 Megawatt Mark

Oct 01 - Business Wire

Active Power, Inc. (NASDAQ:ACPW), a leading manufacturer of battery-free backup power products, announced that it has received its first order for two multi-megawatt systems in a parallel configuration. With this order, the total number of megawatt UPS systems sold is now eleven, with eight of these sales occurring in the last 4 months.

The parallel system will be commissioned in a government facility in Europe, and used to protect the country's vital homeland defense efforts. The system is expected to be on-line protecting the customer's critical applications in the first quarter of 2005.

"Parallel systems represent the largest segment of the high power UPS market, so this order is a significant achievement for Active Power," said Joe Pinkerton, Chairman and CEO of Active Power. "The success we've seen over the last two quarters with the megawatt-class systems reflects well on Active Power's and Caterpillar's ability to penetrate the high power UPS market."

While the megawatt UPS system is based on Active Power's proven CleanSource(R) flywheel technology, the overall architecture is slightly different. Instead of housing both UPS electronics and energy storage flywheel in the same cabinet, Active Power opted to separate this functionality, thereby allowing customers to tailor the amount of flywheel runtime to fit their requirements. In the standard system, four 250 kW flywheels are stacked two to a cabinet, representing 1000 kW in merely 20 square ft.

With over 500 units installed worldwide and several million hours of field operation, Active Power's products are a proven alternative to problematic battery-based systems. CleanSource flywheel technology uses the kinetic energy from a constantly spinning steel flywheel to eliminate the need for lead acid battery-based systems. Active Power has the broadest range of battery-free power quality solutions: the CleanSource DC product line, which is compatible with all leading UPS brands and is available in the 100 - 2000kW range, and the CleanSource UPS product family, available from 65kVA to 3600kVA. Recognized by Frost & Sullivan for its ability to satisfy customer needs with new and innovative products, Active Power continues to rapidly expand its product line to address the needs of new market segments and geographies. For more information visit www.activepower.com, e-mail sales@activepower.com or call toll free 877-FLYWHEEL (359-9433).

About Active Power:

Active Power, Inc. (www.activepower.com) designs, manufactures and markets battery-free power quality products that provide the consistent, reliable electric power required by today's digital economy. An ISO 9001-registered company, Active Power is the first to commercialize a flywheel energy storage system, CleanSource(R) that provides a highly reliable, low cost and non-toxic replacement for lead-acid batteries used in conventional power quality installations.

Cautionary Note Regarding Forward-Looking Statements:

Any forward looking statements and all other statements that may be made in this news release that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Specific risks include delays in new product development, product performance and quality issues and the acceptance of our current and new products by the power quality market. Please refer to Active Power filings with the Securities and Exchange Commission for more information on the risk factors that could cause actual results to differ.

Active Power and our Active Power logo, and CleanSource are registered trademarks of Active Power, Inc. All other trademarks are the properties of their respective companies.

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