AMSC Receives 150 MVAR Static VAR Compensator Order.

- Second Order Received for Company's New Transmission-Level Product Line Since Introduction in September 2007

- Company Generating Increasing Commercial Orders and Development Contracts in Power Grid Sector

WESTBOROUGH, Mass. -- American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, today announced that it has received a multi-million-dollar order from a major U.S. utility for AMSC's Static VAR Compensator (SVC) solution. The complete turnkey solution is scheduled to be commissioned in mid-2008 and will provide 150 mega volt-ampere-reactive (MVAR) of support to help control and stabilize voltage in the utility's surrounding power grid.

"Our new transmission-voltage SVC solution leverages the unique and proprietary thyristor switch technology we obtained earlier this year through our acquisition of Power Quality Systems, Inc.," said Greg Yurek, founder and chief executive officer of AMSC. "Now armed with a full range of reactive compensation solutions, our Network Solutions team is working with power transmission grid operators around the world to design highly effective solutions to help enhance power grid reliability and increase the flow of power through existing transmission assets."

This is the second SVC order AMSC has received since introducing this turnkey solution in September. The company's first order came from Bonneville Power Administration, which will utilize a 95 MVAR AMSC SVC solution for one of its transmission lines in Oregon. AMSC said power grid sector commercial orders and product development contracts have increased substantially in the company's current fiscal year, which ends March 31, 2007.

"Commercial order activity in the power grid sector has increased markedly in 2007," said Yurek. "In addition, we have brought in several important new power grid development contracts focused on superconductor power cables and fault current limiters. While the wind power market is the primary contributor to AMSC's rapid growth today, the power grid sector is now picking up momentum that we believe will contribute strongly to our growth going forward."

SVCs are used to regulate and stabilize power grid voltage. AMSC's proprietary thyristor switch technology enables the company to offer turnkey 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 products.

SVCs and D-VAR[R] systems are classified as FACTs (flexible AC transmission systems). Utilities use these solutions to dynamically control voltage, maintain high reliability and prevent grid instabilities on their transmission and distribution networks. SVCs are a large-scale, centralized, transmission-connected solution, while D-VAR systems are typically connected at the sub-transmission or distribution voltage level. Both solutions are needed and are offered on a turnkey basis by AMSC 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 worldwide.

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.