AMSC Introduces Static VAR Compensator Product Line and Receives First Order.

* Recent Acquisition Positions AMSC as North America's Only Provider of SVC's for Growing Transmission Grid Market

* First SVC Order Received from Bonneville Power Administration, Operator of 75 Percent of Pacific Northwest's High Voltage Transmission Grid

WESTBOROUGH, Mass. -- American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, today introduced a Static VAR Compensator ("SVC") product line. AMSC also announced that it has received its first transmission-level SVC order from Bonneville Power Administration (BPA), operator of 75 percent of the high voltage transmission grid in the Pacific Northwest. The SVC will provide a total of 95 mega-volt-amp-reactive (MVAR) of dynamic reactive compensation for one of BPA's transmission lines in Oregon.

AMSC's SVC product line is based on its proprietary controls technology combined with proprietary thyristor switch technology it obtained through the acquisition of Power Quality Systems, Inc. (PQS) in April 2007. This thyristor switch technology enables AMSC to offer SVC systems that not only have a lower initial cost, but also lower energy and maintenance costs and a smaller footprint when compared with conventional SVC offerings. AMSC's transmission SVC solution builds on a solid installed base of over 60 similar thyristor-based systems that have been successfully deployed by PQS on distribution systems all over North America. AMSC, which has been selling its dynamic-VAR (D-VAR[R]) transmission grid reliability products since 1999, is North America's only manufacturer of SVC's for the growing transmission grid market.

"AMSC has built a solid reputation with power grid operators by providing advanced and reliable solutions that improve system efficiency, enhance power throughput and break grid bottlenecks in a cost-effective way," said AMSC founder and Chief Executive Officer Greg Yurek. "Our SVC solution provides us with a powerful new transmission-level tool. Having just recently closed our acquisition of PQS, I am pleased with our ability to quickly integrate this company and its technology to produce a new transmission-level solution that meets the broader requirements of power grid operators."

SVC systems are required to ensure reliable operation of transmission grids. SVCs and D-VAR systems are "reactive compensation" solutions, classified as FACTs (Flexible AC Transmission system) devices. These solutions are utilized by utilities to dynamically control voltage, helping them maintain high reliability and prevent grid instabilities on their transmission and distribution networks. SVCs and D-VARs increase grid reliability and allow utilities to transfer a greater amount of power over their existing transmission lines.

SVCs are a large-scale, centralized, transmission-connected solution, while D-VAR systems are typically connected at the sub-transmission or distribution level. Both solutions are needed to address the broad requirements of the utility industry. AMSC estimates that the current annual addressable power grid market for reactive compensation solutions is at least $250 million worldwide. This market is expected to continue to grow considerably as global demand for electricity increases and as grid operators invest to improve the reliability of power grids.

The SVC system solution being provided to BPA will provide 45 MVAR of inductive capability and 50 MVAR of capacitive dynamic compensation to a critical location on the local 115kV transmission grid. Scheduled for commissioning in early 2009, AMSC's SVC solution will be installed at the Rogue Substation near Portland, Oregon to help control and stabilize voltage in the surrounding grid. AMSC will provide BPA with a full turnkey solution - from engineering to installation and commissioning.

About BPA

BPA is a not-for-profit federal agency that markets about 40 percent of the electricity consumed in the Pacific Northwest. The power is produced at 31 federal dams in the Northwest and one nuclear plant, and is sold to more than 140 Northwest utilities. BPA operates a high-voltage transmission grid comprising more than 15,000 miles of lines and associated substations in Washington, Oregon, Idaho and Montana.

About American Superconductor (NASDAQ: AMSC)

AMSC is a leading energy technologies company offering an array of solutions based on two proprietary technologies: programmable power electronic converters and high temperature superconductor (HTS) wires. The company's products, services and system-level solutions enable cleaner, more efficient and more reliable generation, delivery and use of electric power. AMSC is a leader 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, the company is enabling a new generation of compact, high-power electrical products, including power cables, grid-level surge protectors, Secure Super Grids(TM), motors, generators, 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.amsc.com.

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

Any statements in this release about future expectations, plans and prospects for the company, including our expectations regarding the future financial performance of the company and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: uncertainties regarding the company's ability to obtain anticipated funding from corporate and government contracts, to successfully develop, manufacture and market commercial products, and to secure anticipated orders; the risk that a robust market may not develop for the company's products; the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the company will infringe intellectual property rights of others; and the competition encountered by the company. Reference is made to these and other factors discussed in the "Risk Factors" section of the company's most recent quarterly or annual report filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the company's views as of the date of this release. While the company anticipates that subsequent events and developments may cause the company's views to change, the company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the company's views as of any date subsequent to the date this press release is issued.