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CATALYTICA ENERGY SYSTEMS APPOINTS DOUG CHASE AND ALESIA MARTIN TO KEY
MANAGEMENT ROLES

MOUNTAIN VIEW, CA (June 27, 2001) - Catalytica Energy Systems, Inc. (Nasdaq:
CESI) announced today that it has named Doug Chase as vice president,
Process Development and Alesia Martin as vice president, Human Resources.
Both Chase and Martin offer a wealth of experience. Chase brings to
Catalytica Energy Systems extensive managerial experience and expertise in
leading Six Sigma training initiatives and applying these programs across a
variety of corporate functions. Martin brings over 16 years of managerial
experience in human resources and organizational development and has a
proven track record in developing innovative personnel practices and
successful employee relations programs.
"The proven leadership skills, strategic thinking, and level of
professionalism offered by Doug and Alesia will be of great benefit to us as
we continue to evolve as a company," stated Craig Kitchen, president and CEO
of Catalytica Energy Systems, Inc. "Now that we are offering a commercial
product and expanding our operations into a second site near Phoenix,
Arizona, we have new organizational needs. We are pursuing supplementary
engineering resources to expand the application of our technology to
additional gas turbine models, and are growing our sales, manufacturing, and
service activities to position our product in the marketplace. At the same
time, we are looking ahead to future high volume manufacturing activities,
and are increasing our focus on implementing process efficiencies and cost
reduction efforts. Doug and Alesia will both play an integral role in
optimizing our corporate infrastructure to ensure that our growth needs are
met."
Doug Chase, as Catalytica Energy Systems' vice president, Process
Development, will be responsible for overseeing the Company's operations and
manufacturing groups, as well as implementing company-wide process
enhancements for increased productivity and an effective use of resources.
Prior to joining Catalytica Energy Systems, Chase acted as master black belt
and provided Six Sigma consulting services in the automotive industry. From
April 2000 through February 2001, Chase was director, master black belt for
Gateway, Inc. and was responsible for Six Sigma implementation in a customer
service environment. Before joining Gateway, Chase spent twelve years at
AlliedSignal (now Honeywell), most recently serving as black belt and then
as master black belt from April 1997 through March 2000. During this time,
he was responsible for both organizational development and process
improvement, and led multiple Six Sigma projects both at AlliedSignal's
electronics manufacturing site and within the aerospace turbine engine
manufacturing area. These efforts included the roll out of Six Sigma
training and implementation across strategic business units and the
execution of a customer quality program. Chase also held other positions at
AlliedSignal in facilities management, project management, strategic
planning, and organizational development. Chase holds a bachelor's of
science degree in business administration and management from the University
of Phoenix.
As Catalytica Energy Systems' vice president, Human Resources, Martin will
be responsible for overseeing all human resources functions across the
Company's two sites and for directing strategic corporate initiatives
involving recruitment, organizational development and training, benefits and
compensation, and employee relations programs.
Prior to joining Catalytica Energy Systems, Martin served as vice president
of Human Resources and Administration for MicroAge, Inc. where she was
responsible for nationwide strategic planning and development for the human
resources function of a $6 billion company serving 6,000 employees in 44
locations. During her six years at MicroAge, she managed and directed the
professional development, personnel policies and administration for a
diverse and dynamic workforce. Martin was key in implementing innovative
personnel practices including leadership development, performance
management, virtual-office environments and technical training using
automation and web-based tools. Martin also served as director of training
during her tenure at MicroAge, and implemented management development
training and web-based training for field and headquarters-based associates.
Before joining MicroAge, she served as the administrator of Training,
Education and Communication for the Arizona State Fund. Martin holds a
master's of administration degree in higher education and a bachelor's of
arts degree in training and development, both from Arizona State University.
Recently, Martin was selected as one of the Top 100 Arizona Women in
Business 2001 by Today's Arizona Woman magazine.
Catalytica Energy Systems designs and develops advanced products for
more effective energy production. Its proprietary technologies include the
use of catalysts to create solutions to ease the environmental impact of
power generation. The Company's first product, Xonon* Cool Combustion, is a
breakthrough combustion technology that achieves ultra-low emissions levels
for gas turbine power production. Xonon prevents the formation of
pollution, particularly nitrogen oxides (NOx), a primary contributor to
smog, through a proprietary catalytic combustion process. Find Catalytica
Energy Systems on the worldwide web at www.CatalyticaEnergy.com.

This news release contains forward-looking statements regarding the growth
prospects for Catalytica Energy Systems' business, the commercialization of
its first product, Xonon Cool Combustion, the ability of Mr. Chase to enable
process efficiencies and cost reduction, and the ability of Ms. Martin to
contribute to enhancing organizational development and the human resources
function. Actual results may differ and such differences may be material
from those anticipated in such forward-looking statements. These statements
involve risks and uncertainties, including without limitation, the ability
of Mr. Chase and Ms. Martin to translate management expertise to Catalytica
Energy Systems' process development and human resources infrastructure, the
risk that there may be unanticipated technical, commercial or other factors
related to the incorporation of Xonon into gas turbines, and that results
may differ from those stated and the other risks set forth in the Catalytica
Energy Systems' Form 10-K for the year ending December 31, 2000, filed with
the Securities and Exchange Commission. Catalytica Energy Systems
undertakes no obligation to update publicly any forward-looking statements
to reflect new information, events, or circumstances after the date of this
release. Investors are encouraged to review Catalytica Energy Systems' Form
10-K for the year ending December 31, 2000, filed with the Securities and
Exchange Commission, for additional factors that could affect Catalytica
Energy Systems' future performance.

# # # #

Editor's Note: Xonon and Xonon Cool Combustion are registered trademarks of
Catalytica Energy Systems, Inc. Mountain View, CA, USA
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