Alaskan Electric Utility Signs $1.1 Million Contract with Northern Power for Three Additional Wind Turbines

WAITSFIELD, Vt., June 2 /PRNewswire-FirstCall/ -- Northern Power, a subsidiary of Distributed Energy Systems Corp. (NASDAQ: DESC) , has been awarded a contract for $1.14 million to install, commission and service three additional NorthWind 100 wind turbines for the Alaska Village Electric Cooperative (AVEC) in the rural village of Chevak, Alaska. The contract continues AVEC's commitment to the development of its rural wind program in Alaska, bringing the total number of turbines AVEC has purchased from Northern Power to 13.

The three new turbines, combined with an additional NorthWind 100 purchased by AVEC in October 2005, are expected to be installed in Chevak by the autumn of 2006. Together, the four turbines will produce approximately 905,332 kWh of electricity annually, replacing about 30% of the energy normally generated by diesel fuel. At current fuel prices, the turbines are expected to provide AVEC significant annual fuel cost savings.

In addition to installing the turbines, Northern Power will provide maintenance and service on them for a period of at least two years. Northern Power will also provide its proprietary SmartView(R) monitoring software, allowing AVEC to monitor and control the wind turbines as well as monitor the overall power generation system assets.

The NorthWind 100 turbines ordered by AVEC to date are part of an important initiative to integrate renewable wind power into a rural energy infrastructure dominated by diesel generation technologies. In the region of Alaska known as the Yukon-Kuskokwim Delta, approximately 525 miles west of Anchorage, Chevak will be the third village to be provided with NorthWind 100 turbines.

"We are very pleased to have received this additional order from AVEC," stated Darren Jamison, president of Northern Power. "In an area where fuel can be costly and difficult to deliver and use, this contract further validates the NorthWind 100 turbine's value in such environments. We will continue to work closely with AVEC and other rural utilities in Alaska, Canada and elsewhere to identify additional locations which could clearly benefit from our industry-leading solution."

About AVEC

Alaska Village Electric Cooperative, Inc. (AVEC) is a non-profit electric utility that serves residents in 52 villages throughout rural Alaska. The AVEC service area spans the largest distances of any electric cooperative in the world, serving over 22,000 people. AVEC is a customer-owned cooperative, financed by member equity and by loans from the Rural Utilities Service, U.S. Department of Agriculture. Since 2001 it has also received financial awards from the Denali Commission for infrastructure improvement. Through AVEC's efforts, the introduction of stable electricity has brought about many changes to rural Alaska, including better health care, improved housing, schools, water and sewer systems, improved communications and new or improved businesses.

About Northern Power

Northern Power, a Distributed Energy Systems company, offers reliable power systems, services and products to commercial, industrial, government, utility, and military customers. The company also conducts research and development in the areas of renewable energy, distributed generation and hydrogen technology. Northern Power was founded in 1974, is headquartered in Waitsfield, Vermont and employs over 200 people with engineering, fulfillment, and customer-support capabilities. The company is a wholly owned operating unit of Distributed Energy Systems Corp. For more information, visit http://www.northernpower.com/.

About Distributed Energy Systems Corp.

Distributed Energy Systems Corp. (NASDAQ: DESC) creates and delivers products and solutions to the emerging decentralized energy marketplace, giving users greater control over their energy cost, quality, and reliability. As the parent company of Proton Energy Systems, Inc. (http://www.protonenergy.com/) and Northern Power Systems, Inc., Distributed Energy Systems delivers a combination of practical, ready-today energy solutions and the solid business platforms for capitalizing on the changing energy landscape. For more information, visit http://www.distributed-energy.com/.

This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Statements contained herein that are not statements of historical fact, including statements concerning performance of wind turbines, may be deemed to be forward-looking information. Without limiting the foregoing, words such as "expect," "should," and "will" and other forms of these words or similar words are intended to identify forward-looking information. Northern's and Distributed Energy's actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. Northern Power Systems and Distributed Energy each disclaim any obligation to update these forward-looking statements.

Factors that could cause results to differ materially from those contained in Northern's and Distributed Energy's forward-looking statements include, but are not limited to, failure of our products and systems to perform as specified or achieve commercial acceptance, the impact of competitive products and systems, and other factors detailed in Distributed Energy's Form 10-K for the quarter ended March 31, 2006, and other filings Distributed Energy may make from time to time with the SEC.