Beacon Power Engages Group Robinson to Pursue Financing for Pennsylvania Plant, Develop and Obtain Financing Packages for Turnkey Plants in Overseas Markets

TYNGSBORO, Mass., Oct. 6, 2011 (GLOBE NEWSWIRE) -- Beacon Power Corporation BCON, a leading provider of fast-response energy storage systems and services to support a more stable, reliable and efficient electricity grid, announced that it has engaged the services of Group Robinson, a leading global advisor and investment banking firm specializing in the clean technology, energy and infrastructure sectors.

The Group's immediate objective will be to identify and secure project financing for Beacon's 20 MW flywheel frequency regulation plant, planned for construction in Hazle Township, Pennsylvania. In addition, Group Robinson will assist Beacon in developing one or more lease or build-operate-transfer (BOT) structures for use in marketing turnkey flywheel plants in non-U.S. locations.

"John Robinson has a long and distinguished track record as a closer who can find and deliver project financing solutions under all types of economic conditions," said Bill Capp, Beacon president and CEO. "Our Pennsylvania plant will bring jobs and other benefits to the region, as well as help stabilize the power grid and earn revenue for Beacon. With their proven experience, sector expertise, and global reach, we're looking to Group Robinson to bring together the remaining financing that will enable us to begin construction."

Beacon Power has already secured more than half of the funding to build the $53-million project, including a $24-million Smart Grid stimulus grant award from the U.S. Department of Energy and a $5-million state grant. The Company's first 20 MW flywheel frequency regulation plant, which has been operational since January, is located in Stephentown, New York.

Beacon's plant in Hazle Township will provide an essential grid-stabilizing service known as frequency regulation, by effectively "recycling" electricity to balance supply and demand on a moment-to-moment basis. Unlike conventional fossil-fuel generators that typically provide this service, Beacon's flywheel technology consumes no fuel, produces zero emissions, and can perform faster and more cost-effectively.

About Group Robinson

Group Robinson is a leading global advisor with a history of providing innovative solutions that enable clients to achieve their strategic and financial goals. Founded in 1991, the firm's core areas of expertise are in clean technology, transportation, infrastructure and electrical and thermal energy generation industries, including domestic and international project and structured finance. John Robinson, Group Robinson's Chairman and CEO, has over 30 years of global advisory and financing experience. He and his associates work closely with top management, boards of directors and private investors, to facilitate access to capital that will enable firms to move their business plans and technologies to the next critical milestone. More information at www.grouprobinson.com.

About Beacon Power Corporation

Beacon Power Corporation designs, develops and is commercializing advanced products and services to support stable, reliable and efficient electricity grid operation. Beacon's Smart Energy Matrix^TM, now in production, being operated and earning revenue, is a non-polluting, megawatt-scale, fast-response flywheel-based solution designed to provide less expensive, more sustainable and effective regulation services to power grids around the world. The Company's business strategy is both to supply regulation services from its own plants and to sell systems directly to utilities or grid operators in parts of North America and selected international markets. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S. More information at 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.