AMSC Signs Wind Energy System Development Contract with Doosan Heavy Industries & Construction.

Company to Develop 3 Megawatt Wind Energy System for South Korean Market

WESTBOROUGH, Mass. -- American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, announced today it has signed a wind energy system development contract worth more than $2 million with Doosan Heavy Industries & Construction Co., Ltd. (Doosan) of South Korea, an engineering, procurement and construction contractor with 5,000 employees worldwide.

Under the terms of the contract, AMSC's wholly-owned subsidiary, Windtec[TM], will develop a 3 megawatt (MW) wind energy system for Doosan and support the assembly and installation of the first prototype. Doosan plans to begin series production of these systems late in 2009. Windtec also has the right of first refusal for all future 3 MW wind turbine electrical systems from Doosan, creating a significant follow-on business opportunity for Windtec.

AMSC and its Windtec subsidiary have strong core competencies in wind turbine systems, rotating machinery, power electronics and power grid engineering, which providing a strong foundation for developing state-of-the-art wind energy systems for companies such as Doosan.

"Doosan is known worldwide for its ability to deliver high-quality, large-scale systems for many applications and markets," said Greg Yurek, founder and chief executive officer of AMSC. "We are honored to be working with such a well known, high-profile leader to help meet the renewable energy needs of South Korea and other markets Doosan serves around the world."

The deal represents Windtec's first 3 MW system development contract and its first entry into the South Korean renewable energy market. According to the Global Wind Energy Council, South Korea's installed base of wind generated electricity grew by 42 percent to 98 MW in 2005. The South Korean government plans to generate approximately five percent of its total power from wind, solar and tidal systems by 2011, up from approximately 2 percent currently.

"AMSC's Windtec subsidiary brings unique capabilities that can significantly lower Doosan's barrier to entry in wind energy," said Jong-Po Park, general manager of the renewable energy development team at Doosan. "Given that 1 MW systems remain the norm in today's market, we believe Windtec's 3 MW turbine design will enable Doosan to quickly become a market leader. We look forward to a long and fruitful business relationship together."

About Doosan Heavy Industries & Construction

Doosan Heavy Industries & Construction Co., Ltd. is a global leader in the manufacturing of power plants, desalination plants and other products. Doosan Heavy Industries & Construction has built over 300 nuclear, thermal, combined-cycle and hydro power plants and is currently building more than 60 power plants worldwide. Founded in 1962, Doosan Heavy Industries & Construction is headquartered in Korea and employs over 5,000 people worldwide with international operations in China, Japan, Germany, Saudi Arabia and the United States.

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.

Any statements in this release about future expectations, plans and prospects for the company, including our expectations regarding Doosan's wind energy system manufacturing plans, future business opportunities with Doosan, 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; 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.