Beacon Power Completes $4.4 Million Investment Transaction

Beacon Power Corporation announced that the Company has consummated the sale of 8,966,000 units to three investors for $0.50 per unit, as previously announced on December 22, 2008. Each unit consists of one share of the Company’s Common Stock and a warrant to purchase one share of Common Stock at an exercise price of $0.74 per share. The units were issued pursuant to a prospectus supplement filed with the Securities and Exchange Commission in connection with a shelf takedown from the Company’s registration statement that became effective on July 29, 2008.

The net proceeds to the Company are approximately $4.1 million after deducting placement agency fees and estimated offering expenses.