Beacon Power Corporation (Beacon) designs and develops products and services to support electricity grid operation. Beacon is a development-stage company. The focus of its research and development has been to establish flywheel-based energy storage technologies that can provide energy solutions for the worldwide electricity grid. The Company focuses on the geographic regions of the domestic grid that provide open bid markets for regulation services. Beacon’s Smart Energy 25 flywheels consist of the flywheels and the associated power electronics. A Smart Energy Matrix is an array of 10 Smart Energy 25 flywheels that can provide 1 megawatt of energy storage. A frequency regulation installation includes one or more Smart Energy Matrices, along with ancillary equipment and site work. On November 18, 2008, the Company connected its first 1 megawatt Smart Energy Matrix to the electric grid in Tyngsboro, Massachusetts.