AUSTIN, Texas – (June 1, 2009) – Active Power, Inc. (NASDAQ: ACPW) today announced that it entered into an agreement for a $3.0 million private placement pursuant to which it sold 6.0 million shares of common stock at $0.50 per share. The financing closed on May 29, 2009.

Active Power intends to use the net proceeds from this financing transaction for working capital and general corporate purposes.

The securities sold in the financing have not been registered under the Securities Act of 1933.  Accordingly, these securities may not be offered or sold in the United States, except pursuant to the effectiveness of a registration statement or an applicable exemption from the registration requirements of the Securities Act. Active Power has agreed to file a registration statement covering resale of these securities by the investors.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Active Power

Active Power (NASDAQ: ACPW) provides efficient, reliable and green critical power solutions and uninterruptible power supply (UPS) systems to enable business continuity in the event of power disturbances.  Founded in 1992, Active Power’s flywheel-based UPS systems protect critical operations in data centers, healthcare facilities, manufacturing plants, broadcast stations and governmental agencies in more than 40 countries.  With expert power system engineers and worldwide services and support, Active Power ensures organizations have the power to perform.  For more information, please visit http://www.activepower.com.