Beacon Power Flywheel Plant in Stephentown Reaches Full 20 MW Capacity

Tue Jun 21, 2011 7:00am EDT

* Reuters is not responsible for the content in this press release.

TYNGSBORO, Mass., June 21, 2011 (GLOBE NEWSWIRE) -- Beacon Power Corporation
(Nasdaq:BCON), a leading provider of advanced products and services to support a
more stable, reliable and efficient electricity grid, announced that the
Company's first flywheel energy storage plant in Stephentown, New York, has
achieved its full 20-megawatt (MW) capacity. The plant, which is the largest
advanced energy storage facility now operating in North America, utilizes 200
high-speed Beacon flywheels to provide fast-response frequency regulation
services to the New York electricity grid. A formal inauguration ceremony will
be held on July 12th.

"We're very proud to have reached this technical and commercial milestone in
building and operating the first grid-scale flywheel-based storage plant in the
world," said Bill Capp, Beacon Power president and CEO. "We look forward to
celebrating this achievement next month with the federal, state and local
organizations and individuals that helped make the project possible."

"New York's competitive marketplace for electricity provides fertile ground for
energy innovations such as Beacon Power's flywheel system. It's great to see
pioneering technology bringing new solutions to meet New York's energy needs,"
said Stephen G. Whitley, president and CEO of the New York Independent System
Operator (NYISO).

"It is great news that Beacon Power's new flywheel energy storage plant has
reached full capacity," said Francis J. Murray Jr., president and CEO, New York
State Energy Research and Development Authority (NYSERDA). "NYSERDA has
supported this Stephentown plant in our ongoing effort to encourage the use of
new technology to improve the reliability of the grid and reduce CO2 emissions.
We are proud to partner with Beacon Power."

"We're pleased to be in the New York electricity market selling a full 20 MW of
fast and accurate regulation service to the NYISO grid," said Judith Judson,
Beacon Power vice president of asset management and market development. "Our
Stephentown project is under budget and performing extremely well, proving that
Beacon's flywheel technology can deliver an essential grid reliability service
while reducing the need for fossil fuel-based regulation resources and cutting
greenhouse gas emissions."

About Beacon Power

Beacon Power Corporation designs, develops and commercializes advanced products
and services to support stable, reliable and efficient electricity grid
operation. The Company's primary business strategy is to build merchant plants
and sell turnkey regulation facilities to meet both domestic and international
grid requirements using its patented flywheel energy storage technology.
Beacon's Smart Energy Matrix, which is now in production, operating and earning
revenue, is a non-polluting, megawatt-level, utility-grade flywheel-based
solution to provide sustainable frequency regulation services. Beacon is a
publicly traded company with its research, development and manufacturing
facility in the U.S. For more information, visit www.beaconpower.com.

Safe Harbor Statements under the Private Securities Litigation Reform Act of
1995: The Material contained in this press release may include statements that
are not historical facts and are considered "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect Beacon Power Corporation's current views
about future events, financial performances, and project development. These
"forward-looking" statements are identified by the use of terms and phrases such
as "will," "believe," "expect," "plan," "anticipate," and similar expressions
identifying forward-looking statements. Investors should not rely on
forward-looking statements because they are subject to a variety of risks,
uncertainties, and other factors that could cause actual results to differ
materially from Beacon's expectation. These factors include: a short operating
history; a history of losses and anticipated continued losses from operations;
the complexity and other challenges of arranging project financing and resources
for one or more frequency regulation power plants, including uncertainty about
whether we will be able to comply with the conditions or ongoing covenants of
the Federal Financing Bank loan for our Stephentown, New York, facility; our
need to comply with any disbursement or other conditions under the DOE Smart
Grid grant program; a need to raise additional equity to fund Beacon's projects
and our other operations in uncertain financial markets; conditions in target
markets, such as that some ISOs are taking longer than others to comply with
FERC's requirement to update market rules to include new technology such as
ours, and also such as that frequency regulation pricing is lower in the
short-term than at many times in the past; our ability to obtain site
interconnection approvals, landlord approvals, or other zoning and construction
approvals in a timely manner; limited experience manufacturing commercial
products or supplying frequency regulation services on a commercial basis;
limited commercial contracts for revenues to date; the dependence of revenues on
the achievement of product optimization, manufacturing and commercialization
milestones; dependence on third-party suppliers; intense competition from
companies with greater financial resources, especially from companies that are
already in the frequency regulation market; possible government regulation that
would impede the ability to market products or services or affect market size;
possible product liability claims and the negative publicity which could result;
any failure to protect intellectual property; retaining key executives and the
possible need in the future to hire and retain key executives; the historical
volatility of our stock price, as well as the volatility of the stock price of
other companies in the energy sector, especially in view of current conditions
in the financial markets generally. These factors are elaborated upon and other
factors may be disclosed from time to time in Beacon Power filings with the
Securities and Exchange Commission. Beacon Power expressly does not undertake
any duty to update forward-looking statements.

CONTACT:  Chris Witty
          Darrow Associates
          646.438.9385
          cwitty@darrowir.com
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