American Superconductor to Receive $12 Million Under the American Recovery and Reinvestment Act for Ongoing Superconductor Power Cable and Fault Current Limiter Projects

DEVENS, Mass.--(BUSINESS WIRE)-- American Superconductor Corporation, a global energy technologies company, today announced that the United States Department of Energy (DOE) has provided more than $12 million in funding to AMSC under the American Recovery and Reinvestment Act to complete the following ongoing superconductor smart grid projects:

• AMSC is receiving $4.8 million in additional funding to develop a three-phase 138 kilovolt (kV) fault current limiter (FCL) using the company's 344 superconductors. This FCL will feature a proprietary Siemens-developed, low-inductance coil technology that makes the FCL invisible to the grid until it switches to a resistive state. AMSC is serving as project manager and wire supplier. The team also includes Southern California Edison, Siemens AG, Nexans and Los Alamos National Laboratory. In total, the DOE is providing nearly $8 million in funding for this project.

• AMSC is receiving $7.6 million in additional funding for the second phase of its superconductor power cable project with Long Island Power Authority (LIPA). This will be a transmission voltage (138kV) extension of the superconductor cable system that was commissioned in LIPA's grid in April 2008. The extension utilizes AMSC's second generation (2G) high temperature superconductor (HTS) wire, branded as 344 superconductors. AMSC is serving as project manager and wire supplier, Nexans is the cable manufacturer and Air Liquide Advanced Technologies U.S. LLC is providing the cryogenics system. In total, the DOE is providing more than $12 million for this project.
"The Long Island Power Authority, the first utility in the world to commission an HTS power transmission cable system, commends the Department of Energy for funding Phase II of this critical project, which will allow us to expand the existing transmission line demonstration project to connect between two major substations on Long Island," said LIPA President and CEO Kevin S. Law. "Superconducting cables are a key ingredient in advancing smart grid technology that will help us fulfill our objective of continuing to provide safe, reliable, and efficient service to our customers. This award is the next step in demonstrating the value of superconductivity and we look forward to our continued work with American Superconductor and DOE on this important project."

AMSC's awards were part of a $47 million "smart grid demonstration" package announced yesterday by the DOE. According to the DOE announcement, "The $47 million in Recovery Act awards announced today will support existing projects that are advancing demonstration-scale smart grid technologies which will play an important role in modernizing the country's electricity grid." In addition to the $12 million in funding for AMSC's projects, an additional $8 million was awarded to another superconductor fault current limiter project.

"The Obama Administration has placed a high priority on smart grid technologies that enhance the efficiency and resiliency of our expanding power infrastructure," said Dan McGahn, Senior Vice President and General Manager of AMSC Superconductors. "This bodes well for the superconductor industry in general and American Superconductor in particular. Our DOE-funded programs will enable us to once again demonstrate the compelling power density and security advantages afforded by superconductor power cables and fault current limiters. We expect there will be a substantial global market opportunity for these smart grid technologies in the next decade."

About American Superconductor
AMSC offers an array of proprietary technologies and solutions spanning the electric power infrastructure - from generation to delivery to end use. The company is a leader in alternative energy, providing proven, megawatt-scale wind turbine designs and electrical control systems. The company also offers a host of Smart Grid technologies for power grid operators that enhance the reliability, efficiency and capacity of the grid, and seamlessly integrate renewable energy sources into the power infrastructure. These include superconductor power cable systems, grid-level surge protectors and power electronics-based voltage stabilization systems. AMSC'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, D-VAR, dSVC, PowerModule, PQ-IVR, Secure Super Grids, Windtec and SuperGEAR are trademarks or registered trademarks of American Superconductor Corporation or its subsidiaries. All other brand names, product names or trademarks belong to their respective holders.

The Windtec logo and design is a registered European Union Community Trademark.
Any statements in this release about future expectations, plans and prospects for the company, including our expectations regarding the future financial performance of the company 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 the increasingly uncertain global economic conditions could result in customers delaying or reducing purchases of our products; 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. 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.

Contacts
American Superconductor Corporation
Jason Fredette, 978-842-3177
Director of Investor & Media Relations
jfredette@amsc.com

Source: American Superconductor Corporation