American Superconductor Achieves Performance Levels Required for Commercial Electromagnetic Coils Utilizing New 348 Superconductors.

SEATTLE -- American Superconductor 

--348 Superconductors Developed to Meet Demanding Operating Conditions for Electromagnetic Coils - the Key Component of Most Power Applications

--Performance Requirements Achieved at Higher Operating Temperatures, Paving Way for More Cost-Effective Superconductor Electrical Products

--Company Plans to Offer New 348 Superconductors for Sale in 2007

American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, announced today at the Applied Superconductivity Conference that it has achieved levels of magnetic, electrical, thermal and mechanical performance required for commercial electromagnetic coils utilizing its proprietary second generation (2G) high temperature superconductor (HTS) wire. Electromagnetic coils are the core component of virtually all electrical products beyond power cables.

This is the first time these commercial performance levels have been achieved using AMSC's 2G wire. The company accomplished these results using a new three-ply, 4.8-mm wide wire, branded as 348 superconductors. This achievement paves the way for more cost-effective HTS motors and generators, SuperVAR(R) grid reliability solutions and many other coil-based electric power products that are of comparable or lower cost than traditional, copper-based solutions. The company plans to offer 348 superconductors for sale in 2007.

The results of multiple tests on coils of varying configurations confirmed that American Superconductor's 348 superconductors have achieved commercial-grade performance levels in electromagnetic coils - in all cases meeting or exceeding the strength, durability, and electrical current capabilities of commercial first generation (1G) HTS wire.

"This latest accomplishment, following so quickly on the heels of last month's breakthrough in electricity with our HTS wire, continues our very rapid progress in developing 2G products to meet broad industry requirements," said Greg Yurek, CEO of American Superconductor. "The wide range of industries this new technology has the potential to impact is staggering."

Tests showed that 348 superconductors with today's performance levels can already be utilized to produce a 36.5-MW (49,000 horsepower) HTS ship propulsion motor capable of operating at 38 degrees Kelvin - eight degrees higher than the operating temperature of the 36.5-MW ship propulsion motor that AMSC is shipping to the U.S. Navy this year, which utilizes the company's 1G HTS wire.

"The increase in operating temperature expected to be enabled by switching from 1G HTS wire to 348 superconductors means that a 36.5-MW motor can use the same size cryogenic refrigeration system as a 5-MW motor - yielding substantial operating and capital equipment savings," said Alex Malozemoff, AMSC's chief technical officer. "Our objective is to increase the operating temperature of large-scale electrical equipment, such as motors and SuperVAR synchronous condensers, much further - to about 55 degrees Kelvin - which will increase these savings further. We plan to achieve this through further improvements in the electrical, magnetic, mechanical and thermal performance of our 348 superconductors and through application of our nearly two decades of experience in coil development and manufacturing."

"American Superconductor's proprietary 2G wire manufacturing utilizes a low-cost lamination process to tailor product specifications to meet customer demands," Malozemoff continued. "We can offer HTS wires in a variety of dimensions with different laminations that are suited for particular applications. AMSC's 344 superconductors are the wire of choice for HTS power cables and many coil applications. 348 superconductors are ideally suited for use in more demanding coil applications such as motors, generators, SuperVAR grid reliability solutions and other electric power products. Adding 348 superconductors to our growing 2G HTS wire product line positions AMSC to meet a broad range of HTS customer needs."

Technical Background

The Applied Superconductivity Conference is the world's leading conference focused on practical applications of superconductivity. The conference is being held in Seattle from August 28 through September 1. American Superconductor (Booth # 204) will provide an update on the research and testing of HTS electromagnetic coils made with 348 superconductors.

AMSC produced and tested over 80 pancake and racetrack-shaped coils made with 344 and 348 superconductors to evaluate their mechanical, thermal and electrical performance under rigorous test conditions, including under conditions that produced high levels of thermal strain in multiple cycles of cooling and warming. Increasing the width of the standard 4.4-millimeter wide, ribbon-shaped 344 superconductors to 4.8-mm produced substantial improvements in all strength and durability metrics needed for electromagnetic coil applications. 348 superconductors are laminated with ultra-thin strips of a special copper alloy in a wave soldering operation during the last step of manufacturing to achieve the required levels of mechanical, electrical, thermal and magnetic performance for each application. To learn more about AMSC's 2G products, including the 344 and 348 superconductors, please visit: http://www.amsuper.com/products/htsWire/2GWireTechnology.cfm

About American Superconductor Corporation (NASDAQ:AMSC)

AMSC is the world's principal vendor of high temperature superconductor (HTS) wire and large rotating superconductor machinery, and it is a world-leading supplier of dynamic reactive power grid stabilization products. AMSC's HTS wire and power electronic converters are at the core of a broad range of new electricity transmission and distribution, transportation, medical and industrial processing applications, including dynamic reactive power grid stabilization solutions, large ship propulsion motors and generators, smart, controllable, superconductor power cables and advanced defense systems. The company's products are supported by hundreds of patents and licenses covering technologies fundamental to Revolutionizing the Way the World Uses Electricity(TM). More information is available at www.amsuper.com.

AMSC and POWERED BY AMSC, are trademarks and American Superconductor and design and Revolutionizing the Way the World Uses Electricity, are registered trademarks of American Superconductor Corporation. All other trademarks are the property of their respective owners.

Any statements in this release about future expectations, plans and prospects for the Company, including the performance and application of 344 and 348 superconductor wire and coils 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, including several large Japanese companies. Reference is made to these and other factors discussed in the "Management's Discussion and Analysis of Financial Condition and Results of Operation" 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.