AMSC Receives Follow-on Order from Semiconductor Chip Manufacturer for Power Quality Solution.

* Order for PQ-IVR[R] Solution is AMSC's First from Outside the U.S.

* Productivity and Throughput of Wafer Fab in Southeast Asia to be Dramatically Increased by Eliminating Momentary Voltage Sags

* 107 MVAR Industrial Power Quality Solution Includes 10 Proprietary D-VAR[R] Modules

WESTBOROUGH, Mass. -- American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, today announced that a major U.S.-based semiconductor chip manufacturer has placed a follow-on order for AMSC's Power Quality Industrial Voltage Restorer (PQ-IVR) system for one of its large wafer fabrication facilities in Southeast Asia. This is the third substantial order for AMSC's proprietary full factory power quality solution from the semiconductor industry. It is also the first order for a PQ-IVR to be shipped outside the U.S. and is the second order from this customer.

Momentary sags in voltage lasting less than two seconds on the power lines serving manufacturing sites account for more than 90% of factory downtime. According to a report commissioned in 2001 by the Electric Power Research Institute, power quality problems of this kind cost U.S. companies more than $15 billion annually. AMSC's proprietary PQ-IVR solutions are placed at the interface between the power lines and factories to detect voltage disturbances and instantly restore the voltage to normal levels, thereby protecting sensitive microprocessor-based manufacturing equipment.

"Manufacturers in the intensely competitive semiconductor industry are always seeking ways to enhance yield and throughput at their fabs," said Chuck Stankiewicz, executive vice president and general manager of AMSC Power Systems. "With its ability to eradicate voltage glitches that can otherwise shut down sensitive equipment and ruin millions of dollars of in-process product, the PQ-IVR has given industry leaders a measurable competitive edge. We see great potential to penetrate this market further in the years to come."

AMSC's PQ-IVR industrial power quality solution offers large industrial power users the means to avoid common, disruptive power quality problems. The customized PQ-IVR solution for the Southeast Asian fab is rated at 107 megaVARs (MVAR) and includes 10 D-VAR[R] modules, along with ancillary components and controls that are programmed to mitigate voltage sags and swells within milliseconds for 30 megawatts of critical load at the facility. AMSC expects to commission the solution for the customer in the first half of calendar 2008.

Among AMSC's other customers in the industrial market is Micron Technology, which adopted the PQ-IVR solution at its Boise, Idaho semiconductor fab in 2004. To read a case study on AMSC's solution for Micron Technology, visit http://www.amsc.com/documents/MCRN_CS_0207_A4_FINAL.pdf. Additional information about the company's industrial power quality solutions is available at http://www.amsc.com/products/powerQuality/index.cfm.

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.

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