American Superconductor Wins New HTS Wire Order from Korean Technology Developer.

- KERI to Utilize 1G HTS Wire for First Leg of 10-Year Project to Develop and Deploy Advanced Electricity Storage Systems in Power Grids

- AMSC's Receives Second Quarter Orders for Nearly 150,000 Meters of 1G HTS Wire

WESTBOROUGH, Mass. -- American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, announced today that it has received an order for first generation (1G) high temperature superconductor (HTS) wire from the Korea Electrotechnology Research Institute (KERI). KERI, based in Changwon, South Korea, will utilize 22,000 meters of 1G wire to begin a 10-year project focused on developing superconductor magnetic energy storage (SMES) systems. This project is being funded by South Korea's Ministry of Science and Technology.

SMES systems provide backup electric power that is able to respond instantly to power fluctuations on transmission and distribution grids. KERI is developing SMES systems that utilize coils of HTS wire that can store and then release megawatts of power instantly to stabilize voltage in power grids. Until now, commercial SMES systems have only used low temperature superconductors (LTS) that need to operate at extremely low, cryogenic temperatures. SMES systems based on HTS wire are expected to operate at five to 20 times higher temperatures, which would make them more efficient, rugged and affordable for power grid applications. To learn more about SMES, please see http://www.amsuper.com/products/powerConversion/104214300161.cfm

"We are pleased that American Superconductor was awarded this highly competitive bid," said Angelo Santamaria, vice president and general manager of the AMSC Wires business unit of American Superconductor. "KERI's SMES system required a unique four-ply superconductor with particularly high electrical performance - a product that we developed jointly with KERI utilizing our 1G HTS wire. Our ability to rapidly meet customer specifications with 1G wire as we continue to scale up manufacturing of 2G wire was once again key to winning this order. While we have now fully transitioned to the production of 2G HTS wire, known as 344 superconductors, our 1G inventory has enabled us to extend our market leadership."

AMSC received orders for nearly 150,000 meters of 1G HTS wire during the second quarter of fiscal 2007 ended September 30, 2006. The company entered the quarter with more than 400, 000 meters of 1G HTS wire in stock. AMSC expects to receive orders for most, if not all, of its remaining 1G inventory by December 2007 when annual gross capacity for its 344 superconductors ramps to 720,000 meters. AMSC discontinued production of 1G HTS wire as of June 30, 2006.

"Our strategy to meet near-term demand for HTS wire with 1G inventory as we bring our production equipment for 344 superconductors on line is paying off," said Greg Yurek, chief executive officer of AMSC. "Demand for HTS wire and applications continues to build, and American Superconductor is capitalizing fully on every opportunity. Our 344 superconductors, which we believe will have dramatically lower cost and higher performance than 1G wire, will serve as the primary catalyst for widespread adoption of HTS technology in the utility, military and industrial markets, among others."

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[R]. 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 those regarding the timing of 1G HTS wire revenue recognition, the Company's ability to reduce 1G inventory, lower 2G costs and performance, 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 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, 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.