Title: Beacon Power Announces $4.4 Million Investment Commitment

Industry sector: Energy storage

Announcement Type: Financial

TYNGSBORO, Mass., Dec 22, 2008 (BUSINESS WIRE) -- Beacon Power Corporation (NASDAQ: BCON), today announced that it has received a commitment for $4.4 million of new investment in the Company. The capital will be used to fund ongoing operations, including flywheel manufacturing, and the continued development of Beacon's frequency regulation facility in New England. The transaction is expected to close on December 24, 2008.

Beacon will sell approximately 8.9 million units for $0.50 per unit. Each unit consists of one share of the Company's common stock, par value $0.01 per share, and one warrant to purchase one share of the Company's common stock at an exercise price of $0.74 per share. The net proceeds to Beacon Power are expected to be approximately $4.1 million after deducting placement agency fees and estimated expenses.

The warrants will be immediately separable from the units, and will be exercisable beginning six months and one day after the date of their issuance, and will expire five years after they become exercisable. All of the units are being offered by Beacon Power under an effective shelf registration statement previously filed with the Securities and Exchange Commission. Merriman Curhan Ford (NASDAQ: MERR) acted as placement agent in connection with this transaction.