June 27, 2006 at 06:30 AM EDT
Active Power Announces First Usage Agreement Sale of CoolAir UPS
Georgia State University's Network Operations Center Selects CoolAir for Its Numerous Advantages Over Batteries

AUSTIN, Texas, June 27 /PRNewswire-FirstCall/ -- Active Power, Inc. (NASDAQ:ACPW), the leader in battery-free backup power solutions, today announced that it has signed a CoolAir(TM) UPS usage plan agreement with Georgia State University (GSU). The usage agreement, in contrast to a standard purchase agreement, eliminates a large upfront capital expenditure and allows GSU to use the CoolAir equipment for a specified period of time for a fixed, predictable annual price that includes extended warranty and maintenance coverage.

With space limitations and the demand for power increasing, GSU turned to Active Power for a solution that would integrate more effectively into the facility's Network Operations Center, and offer a cleaner, more reliable alternative to typical battery-based systems. Facing additional constraints from available air conditioning systems, GSU also had to determine how to mitigate their increasing heat load in the center. While typical UPS systems introduce additional heat into the protected environment, CoolAir UPS, by providing cool air during discharge, offers a compelling solution to rising thermal loads within data centers.

"We came into this project with the paradigm that an expensive static UPS solution with batteries was our only option," said Jerry Allen, manager of Georgia State University's Network Operations Center. "When we learned of Active Power's unique approach to the problem in terms of battery-free technology and flexible purchase options, our paradigm quickly shifted. As a university dedicated to shaping the future, we're very excited about being one of the first to adopt this new way of thinking about solving the power quality and reliability equation."

Active Power's patented Thermal and Compressed Air Storage (TACAS) technology, incorporated into the CoolAir DC product, uses environmentally- benign thermal energy and compressed air to spin a small expansion turbine and provide 80kW of backup power for up to 15 minutes. When coupled with the double-conversion Active Power UPS, the result is CoolAir UPS, an extended runtime power quality solution that will provide backup power in the event of a power utility outage.

"Georgia State University had both capacity and environmental challenges to meet in their backup power requirements," stated Jim Clishem, CEO and President of Active Power. "At Active Power, we've dedicated ourselves to solving these problems, while also dramatically increasing reliability and lowering total cost of ownership. We look forward to helping Georgia State realize their goals, while also contributing to their bottom line by saving them time and money in their day-to-day operations of running a world-class campus."

"CoolAir appears to be a breakthrough product," said Farah Saeed, the program manager for the backup power sector for Frost & Sullivan. "The ability to provide backup power while simultaneously discharging cool air is a winning combination for data center managers."

About Active Power:

Active Power, Inc. (http://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. Active Power has also recently developed a new battery-free extended runtime product line (CoolAir(TM)) based on its proprietary thermal and compressed air storage technology. For more information visit http://www.activepower.com , e-mail info@activepower.com or call toll free 877-BUYACPW (289-2279).

Cautionary Note Regarding Forward-Looking Statements:

This release may contain forward-looking statements that involve risks and uncertainties. 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.

     Active Power Contacts:
     Tom Price, Public Relations for Active Power, 512.327.2195,
     tprice@bernardgroup.com

     Michael Chibib, Investors, 512.744.9453, mchibib@activepower.com
     Derek Jones, Corporate Communications, 512.744.9210,
     djones@activepower.com

Source: Active Power, Inc.

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