AMSC's Windtec(TM) Sells License for New Wind Energy System Design in China.

- China-Southern-Loric's ZELRI Division Enters Wind Energy Market Utilizing Windtec's Model WT1650 Wind Turbine Design 

- ZELRI to Pay Up-Front License Fee and Royalty for Each Wind System Manufactured

- Additional AMSC Revenues Expected from Sales of Core Electrical Components

WESTBOROUGH, Mass. -- American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, announced today that its wholly-owned subsidiary, Windtec[TM], has sold a license in China for its Model WT1650 wind energy system to Zhuzhou Electric Locomotive Research Institute (ZELRI), a division of China-Southern-Loric. The license includes an upfront fee of approximately $2 million to AMSC as well as a royalty payment for each WT1650 system installed, and a right of first refusal for AMSC to provide the electrical components for each WT1650 manufactured by ZELRI. The potential revenue to AMSC from royalty payments and sales of electrical components exceeds $30 million for the first set of WT1650 wind energy systems ZELRI plans to manufacture and install.

Based in Zhuzhou City in the Hunan province of China, ZELRI develops and sells electric drive systems for locomotives and inverter technologies for industrial and civil use.

"China needs more renewable energy sources to power generation to meet the needs of our rapidly-growing, technology-driven society," said Du Jinsong, general manager of ZELRI's wind power business unit. "To achieve this goal ZELRI aims to become a leading manufacturer of wind energy systems, and Windtec's services and electrical systems are integral to our success in the market. With Windtec's assistance, we plan to demonstrate our WT1650 prototypes late in 2007 and begin full-scale production of the units in 2008."

Under the terms of the contract, ZELRI is gaining rights to manufacture, use and sell Windtec's 1.65 megawatt (MW) Model WT1650 wind energy system in China. Windtec also will provide training for ZELRI's staff and project management services for the company's first two Model WT1650 prototype units.

"We are pleased to be joining forces with another large and well-respected manufacturer to capitalize on China's rapidly growing wind energy industry, which requires that over 70% of the content of wind energy systems come from Chinese suppliers," said Greg Yurek, founder and chief executive officer of American Superconductor. "With nearly 50 years of heavy equipment manufacturing experience ZELRI is a highly respected company that can help meet China's requirement that over 70% of wind energy system content come from local suppliers. The WT1650 wind energy system is an excellent entry point for them into the rapidly growing market for wind energy in China."

According to the Global Wind Energy Council's Global Wind 2005 Report, wind power capacity in China was expected to grow by nearly 60 percent from 1,260 MW in 2005 to 2,000 MW by the end of 2006. "The goal for wind power in China by the end of 2010 is 5,000 MW, requiring an annual increase from 2006 onwards of 800 MW," the report states. "Looking further ahead, 30 GW of wind power has been proposed by the Chinese government in its long term planning for 2020; this would mean an annual installation level of 2,500 MW over the decade from 2011 onwards."

About ZELRI

Zhuzhou Electric Locomotive Research Institute (ZELRI) is a division of China-Southern-Loric. The company has 5,000 staff members and RMB 2.9 billion capital assets. The company's annual sales volume exceeds RMB1.6 billion worldwide. ZELRI plans to maintain its leading position in the rail transportation industry and while expanding to other manufacturing-related growth industries. More information is available at http://www.zelri.com.cn/en/qyzx.aspx.

About AMSC

AMSC (American Superconductor Corporation - NASDAQ: AMSC) is a leading energy technologies company. The company develops and sells a wide range of products and solutions based on high temperature superconductor (HTS) wires and power electronic systems that dramatically improve the efficiency and quality of electricity during its generation, transmission, distribution and use. The company is a dominant force in alternative energy, offering grid interconnection solutions as well as licensed wind energy designs and electrical systems. As the world's principal supplier of HTS wire, AMSC is enabling a new generation of compact, high-power electrical products, including motors, generators, power cables, grid-level surge protectors, and advanced transportation and defense systems. AMSC also provides utility and industrial customers worldwide with voltage regulation systems that dramatically enhance power grid capacity, reliability and security, as well as industrial productivity. The company's technologies are protected by a broad and deep intellectual property portfolio consisting of hundreds of patents and licenses worldwide. More information is available at www.amsuper.com.

American Superconductor and design, Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC, SuperVAR, D-VAR, DVC, PQ-IVR, PowerModule and Windtec are trademarks or registered trademarks of American Superconductor Corporation.

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