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Fletcher Challenge Energy’s Capstone Investment

Fletcher Challenge Energy’s Capstone Investment valued at over NZ$800m


Auckland, 30 June 2000 – Capstone Turbine Corporation, listed on the US NASDAQ market today, with trading closing at US$47.98 per share.

Fletcher Challenge Energy owns 8,077,565 shares in Capstone, and is the largest shareholder.

Today’s closing price values Fletcher Challenge Energy’s stake in Capstone at approximately NZ$820 million. Fletcher Challenge Energy is restricted from selling its stake for a 12 month period. Fletcher Challenge Energy notes that it expects some volatility in the market price of Capstone and that investors should be cautious.

Capstone Turbine Corporation is a Los Angeles based designer and manufacturer of micro-turbines.

The turbines produce electricity (30kw and 60kw units) as well as very clean exhaust.

With one moving part, rotating at 96,000 rpm, the turbines use air bearings rather than liquid lubricants, which coupled with innovative burner design result in extremely low emissions.

The turbines were first conceived as a vehicle power unit to meet Californian clean air requirements.

In 1988 Fletcher Challenge Energy recognised the potential of the design in stationary applications and began discussions with the company, then known as NoMac.

Fletcher Challenge Energy made its first equity investment in Capstone in 1995, when it also secured the marketing rights to stationary applications outside the United States. Fletcher Challenge Energy has recently sold those marketing rights back to Capstone and will receive US$11m from the proceeds of the IPO as final payment for the marketing rights.

# # #

For more information contact:
Stephen Jones
Communications Director
Fletcher Challenge Energy
Tel: 64 9 525 9230 or 021 629 535

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