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Exhibit 99.1
FOR IMMEDIATE RELEASE
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CONTACT:
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SatCon Technology Corporation-Registered Trademark- Thomson Financial Investor Relations
Michael Turmelle Erik Knettel
Chief Operating Officer Director - Technology Consulting
(617) 661-0540 (212) 701-1963
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SATCON AFFILIATE BEACON POWER CORPORATION RAISES
$28.5 MILLION IN PRIVATE PLACEMENT
PROCEEDS TO FUND CAPACITY EXPANSION FOR MANUFACTURING FLYWHEEL ENERGY
STORAGE SYSTEMS.
Cambridge, MA - June 1, 2000 -- SatCon Technology Corporation-Registered
Trademark- (Nasdaq NM:SATC), a leader in power and energy management products
targeted at the distributed power market, today announced that its Beacon Power
Corporation affiliate has closed a $28.5 million private placement of Beacon
Power's Class F preferred stock with GE Capital, Mechanical Technology
Incorporated (Nasdaq:MKTY), DQE Enterprises, Inc., a wholly owned subsidiary of
DQE, Inc. (NYSE:DQE), The Beacon Group Energy Investment Fund II, L.P., Penske
Corporation, Micro-Generation Technology Fund (Arete Corporation) and Perseus
Capital, L.L.C. GE Capital, Mechanical Technology and Perseus Capital each
invested $6.0 million. The Beacon Group invested $4.5 million and DQE
Enterprises, Penske and Micro-Generation Fund each invested $2.0 million. Beacon
Power plans to utilize the proceeds from the private placement to complete the
commercialization of its flywheel energy storage system and to begin
establishing production capability.
"We are excited about this significant investment," said David Eisenhaure,
SatCon's President and Chief Executive Officer. "We believe that the support of
Beacon Power's investors validates our vision that flywheel energy storage
systems can be an environmentally friendly alternative to batteries. We are also
pleased to note that DQE Enterprises, Micro-Generation Technology Fund and
Perseus Capital were already strategic investors in Beacon Power, and that DQE
Enterprises and Mechanical Technology are also strategic investors in SatCon. We
are excited that these companies have been joined by such an impressive list of
investors such as The Beacon Group and Penske Corporation. We are also pleased
that General Electric has elected to invest in Beacon Power and that GE and
Beacon Power have an agreement that GE Corporate Research and Development will
perform co-development activities aimed at flywheel commercialization and
production. SatCon owns 30% of the outstanding capital stock of Beacon Power on
a common equivalent basis after this financing. As Beacon Power's largest
shareholder, we believe that this investment has strengthened Beacon Power and
we view this investment as increasing Beacon Power's overall valuation."
"Beacon Power's Flywheel Uninterruptible Power Supply (UPS) System is initially
targeted at the telecommunications, cable television and wireless communications
industries," said Eisenhaure. "This represents a large annual market. Beacon
Power continues to gather operating data from its field test units at Bell
Atlantic and others, and is incorporating what it has learned into its
production designs. It is also experiencing international interest in its
products. In February, Beacon Power announced its first $1.5 million production
order for 100 flywheel systems from TLER Associates, Ltd. in Mexico."
SatCon Technology Corporation manufactures and sells power and energy management
products for distributed power generation, telecommunications, silicon wafer
manufacturing, factory automation,
(MORE)
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SATCON AFFILIATE BEACON POWER CORPORATION
RAISES $28.5 MILLION IN PRIVATE PLACEMENT
MAY 30, 2000
PAGE 2 OF 2
aircraft, satellites and automotive applications. SatCon has three operating
segments that contain six divisions. Under the Electronics Products segment,
Advanced Fuel Cell Power Products manufactures and sells power conversion
products for fuel cell and other power generation systems and Film
Microelectronics, Inc. designs and manufactures standard and custom
microelectronic circuits and interconnect products. Under the Motion Control
Products segment, Magmotor manufactures standard and custom high-performance
motors and magnetic suspension systems and Ling Electronics manufactures shaker
vibration test equipment, power converters, amplifiers and controllers. Under
the Contract Research and Development segment, SatCon Electronic Power Products
performs contract research and development for power electronics and the
Technology Center is responsible for new technology and product development. Our
affiliate, Beacon Power Corporation, is developing flywheel energy storage
systems for uninterruptible power and power quality management. For further
information, please visit the SatCon website at http://www.satcon.com.
STATEMENTS MADE IN THIS DOCUMENT THAT ARE NOT HISTORICAL FACTS OR WHICH APPLY
PROSPECTIVELY ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. AMONG THE IMPORTANT FACTORS THAT COULD CAUSE THE COMPANY'S ACTUAL
CIRCUMSTANCES, OR RESULTS, TO DIFFER MATERIALLY FROM THOSE IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS INCLUDE MARKET CONDITIONS, DEVELOPMENTS IN THE
COMPANY'S BUSINESS AND INDUSTRY, DIFFICULTIES IN DEVELOPING TECHNOLOGY
ENHANCEMENTS, DIFFICULTIES IN COST ENGINEERING AND DEVELOPING AND EXPANDING
MANUFACTURING CAPACITY. ADDITIONAL INFORMATION CONCERNING FACTORS THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING
STATEMENTS IS CONTAINED FROM TIME TO TIME IN THE COMPANY'S FILINGS INCLUDING,
BUT NOT LIMITED TO, THE 10-K AND 10-Q. COPIES OF THOSE FILINGS ARE AVAILABLE
FROM THE COMPANY AND THE SEC.
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