American Superconductor Completes Acquisition of Windtec(TM).

* Acquisition Positions Company for Strong Additional Sales Growth in Rapidly Expanding Global Wind Energy Market

* AMSC Increases Backlog to More Than $65 Million With January 5(th) Acquisition

WESTBOROUGH, Mass. -- American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, announced today that it completed its previously announced acquisition of Windtec on Friday, January 5, 2007. Windtec, now a wholly-owned subsidiary of American Superconductor, is operated by the company's Power Electronic Systems business unit.

Windtec, based in Klagenfurt, Austria, designs a variety of wind turbine systems from the ground up, and licenses these designs to third parties for an upfront fee and royalty payments for each installation of a Windtec-designed wind turbine system. Windtec also provides consulting services for its licensees who want to upgrade or optimize their wind turbine systems. Windtec normally sells wind turbine electrical systems, which utilize AMSC's PowerModule[TM] systems, to its licensees. Windtec's customers and targeted markets are typically industrial equipment manufacturers and engineering construction companies in fast-growing economies seeking to become manufacturers of wind turbine systems.

"This acquisition opens an important chapter in American Superconductor's history, positioning our company for strong additional sales in one of the most exciting growth sectors in energy today," said Greg Yurek, chief executive officer and founder of American Superconductor. "Our company has been serving the wind market for more than three years with our D-VAR[R] and PowerModule power electronics products. We now will be able to offer a much more diverse and unique array of products and services -- from the design and licensing of entire wind energy systems to turbine electrical systems to wind farm grid interconnection solutions. From a financial perspective, Windtec provides American Superconductor with a powerful revenue growth catalyst as well as an immediate source of strong cash flow."

For the 12 months ending December 31, 2006, Windtec estimates that its total revenues were approximately $13 million and its net income was approximately $1 million, or eight percent of revenues. This is up significantly from $2.7 million in revenues and a break-even bottom line for the 12 months ended December 31, 2005. As of January 5, 2007, Windtec had approximately $35 million of existing backlog, more than $20 million of which AMSC expects to recognize as revenues in fiscal 2008, ending March 31, 2008. AMSC expects profit margins on these future sales will increase over Windtec's historical levels. Going forward, Windtec's financial results will be reported as part of AMSC's Power Electronic Systems business unit.

Including Windtec, AMSC had more than $65 million in total backlog as of January 5, 2007. Based on this existing backlog, AMSC expects Power Electronic Systems revenues to double from approximately $25 million in the fiscal year ending March 31, 2007 to approximately $50 million for the fiscal year ending March 31, 2008. The company expects the acquisition to have an accretive impact on AMSC's earnings beginning in the quarter ending June 30, 2007, which will be Windtec's first full quarter of operations as an AMSC subsidiary.

"In addition to its existing customers in China, Japan and the Czech Republic, Windtec is experiencing strong demand for its offerings in Canada, France, India and South Korea, among other countries," added Yurek. "Each of these leads represents a multi-million-dollar revenue opportunity for AMSC. Having completed this acquisition, we are now focused on closing additional orders this quarter and in the quarters ahead to ensure strong financial performance for AMSC going forward."

Terms & Conditions

The Windtec purchase price was 1.3 million shares of AMSC common stock, valued for accounting purposes at approximately $13.1 million based on a five-day average AMSC stock price of $10.08 per share at the time of signing definitive documents on November 28, 2006. The AMSC shares to be issued at the closing are subject to a lockup whereby the former sole owner and founder of Windtec, Gerald Hehenberger, may sell only a certain number of shares per year through January 2010. AMSC is not assuming any debt in the transaction.

The all-stock transaction also includes an earn-out opportunity with the potential for up to an additional 1.4 million shares of AMSC common stock to be issued to Mr. Hehenberger based on the achievement of certain revenue growth targets for the fiscal years ending March 31, 2008 through March 31, 2011. Mr. Hehenberger, a 20-year wind industry veteran, will remain with the company as Vice President and Managing Director of Windtec. The transaction includes the acquisition of Mr. Hehenberger's 27 patents and patents pending worldwide on wind turbine technology.

For more information on AMSC's wind energy solutions, see: http://www.amsuper.com/products/applications/windEnergy/index.cfm.

To learn more about AMSC's recent Windtec acquisition see:

http://www.amsc-windtec.com

About AMSC (NASDAQ: AMSC)

AMSC (American Superconductor Corporation) is a leading energy technologies company. The company develops and sells a wide range of products and solutions based on power electronic systems and high temperature superconductor (HTS) wires 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 and PowerModule 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 the growth of the wind power market 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.