EXHIBIT 99.1


                                                          FOR IMMEDIATE RELEASE
                                                         Contact: James Spiezio
                                                       Beacon Power Corporation
                                                                   978-694-9121
                                                        spiezio@beaconpower.com


       BEACON POWER ANNOUNCES AWARD OF PHASE II SBIR CONTRACT FOR ADVANCED
                        FLYWHEEL ENERGY STORAGE SYSTEM

   Receives $750,000 Contract from Air Force Research Laboratory for "Extreme
    Energy Density Flywheel Energy Storage System" for Space Applications

WILMINGTON, Mass., October 10, 2005 -- Beacon Power Corporation (NASDAQ: BCON),
a company that designs and develops advanced products and services to support
more stable and reliable electricity grid operation, announces that it has been
awarded a contract through the Air Force Research Laboratory (AFRL), and
co-funded by the Defense Advanced Research Projects Agency (DARPA) of the U.S.
Department of Defense. The contract, valued at $750,000, is for the preliminary
design of a space-based flywheel energy storage system for satellite
applications, and is a Phase II award under the Small Business Innovation
Research (SBIR) program of the U.S. Small Business Administration's Office of
Technology. Beacon announced completion of an associated Phase I project earlier
this year.

"We're very pleased to receive this contract from the AFRL and DARPA," said Bill
Capp, Beacon Power President and CEO. "This project is not only an important
step toward expanding the applications for flywheels, it will also help us
develop key technical innovations that can reduce the cost of future commercial
systems. Our primary focus continues to be the development of systems for power
grid frequency regulation, based on our Smart Energy Matrix design. I believe
that the work associated with this project holds significant promise for further
commercial applications of our technology, both on the ground and in space."

"I congratulate Beacon Power and its employees in Wilmington on receiving this
SBIR Phase II award and wish them success in executing this important contract,"
said U.S. Representative John F. Tierney (D-MA). "The SBIR grant program has
been utilized in this state and region as a means to advance technology, create
job opportunities, and move specific important projects from the drawing board
to production. It is an example of government/private partnership investments
that help America maintain a competitive edge."

Under terms of the contract, Beacon will lead a 15-month technical effort
involving researchers and scientists from Goodrich Space Flight Systems, Optical
and Space Systems Division, Goodrich Corporation; Purdue University; and Texas
A&M University.

Flywheel energy storage systems have the potential to be used in a variety of
space-based applications, including providing power to low-earth-orbit
satellites during the 30 minutes these satellites orbit in darkness and their
solar panels cannot provide power. Compared to electro-chemical (battery)
alternatives, a flywheel-based system is expected to be more reliable, have a
much longer life, be able to be charged and discharged constantly, and deliver
higher performance even under extreme temperatures - all significant advantages
for space applications.

About Beacon Power
Beacon Power Corporation designs sustainable energy storage and power conversion
solutions that would provide reliable electric power for the utility, renewable
energy, and distributed generation markets. Beacon's Smart Energy Matrix is a
design concept for a megawatt-level, utility-grade flywheel-based energy storage
solution that would provide sustainable power quality services for frequency
regulation, and support the demand for reliable, distributed electrical power.
Beacon is a publicly traded company with its research, development and
manufacturing facility in the U.S. For more information, visit
www.beaconpower.com.

Safe Harbor Statements under the Private Securities Litigation Reform Act of
1995:

Material contained in this press release may include statements that are not
historical facts and are considered "forward-looking" within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements reflect Beacon Power Corporation's current views about future events
and financial performances. These forward-looking statements are identified by
the use of terms and phrases such as "believe," "expect," "plan," "anticipate,"
and similar expressions identifying forward-looking statements. Investors should
not rely on forward-looking statements because they are subject to a variety of
risks, uncertainties, and other factors that could cause actual results to
differ materially from Beacon Power Corporation's expectation. These factors
include: a short operating history; a history of losses and anticipated
continued losses from operations; a need to raise additional capital combined
with a questionable ability to do so; conditions in target markets; no
experience manufacturing any product on a commercial basis; limited commercial
contracts for sales to date; little experience managing operations in
geographically dispersed locations; the dependence of sales on the achievement
of product development and commercialization milestones; the uncertainty of the
political and economic climate of any foreign countries into which Beacon hopes
to sell or in which it operates, including the uncertainty of enforcing
contracts and the potential substantial fluctuation in currency exchange rates
in those countries; significant technological challenges to successfully
complete product development; dependence on third-party suppliers; intense
competition from companies with greater financial resources; possible government
regulation that would impede the ability to market products; possible product
liability claims and the negative publicity which could result; any failure to
protect intellectual property; the possible need in the future to hire and
retain key executives, particularly in light of the substantial workforce
reductions during 2001 and 2002; the recent volatility in the stock price of
companies operating in the same sector; the difficulties that often arise in
integrating operations of companies after a merger or acquisition; the power of
controlling shareholders and the limited ability of others to influence the
outcome of matters put to the vote of shareholders. These factors are elaborated
upon and other factors may be disclosed from time to time in Beacon Power
Corporation's filings with the Securities and Exchange Commission. Beacon Power
Corporation expressly does not undertake any duty to update forward-looking
statements.