High Temperature Superconductor Power Grid Stabilization Product Recognized for Technical Excellence -- Selected for R&D 100 Award

High Temperature Superconductor Power Grid Stabilization Product Recognized for Technical Excellence -- Selected for R&D 100 Award

Developed by American Superconductor in Collaboration with Tennessee Valley Authority, SuperVAR(R) Grid Stabilization Product Serves as "Shock Absorber" for Transmission Grid

WESTBOROUGH, Mass., Sept. 13 /PRNewswire-FirstCall/ -- American Superconductor Corporation (NASDAQ:AMSC), a leading electricity solutions company, and the Tennessee Valley Authority, the nation's largest public power provider, today announced that the SuperVAR(R) dynamic synchronous condenser has been selected by R&D Magazine as one of the most technologically significant products introduced over the past year. The SuperVAR dynamic synchronous condenser, which has been recognized for this achievement with the prestigious R&D 100 Award, is a breakthrough product that stabilizes grid voltages, increases service reliability and can help maximize transmission capacity.

Developed by American Superconductor in collaboration with TVA, SuperVAR machines are dynamic synchronous condensers, which are rotating machines, much like motors and generators. They utilize superconductor technology and serve as "shock absorbers" for the grid, dynamically generating or absorbing reactive power (measured in volt-amperes-reactive or VARs).

"In today's digital economy, keeping voltage levels constant and stable is vital," said TVA Executive Vice President of Transmission/Power Supply Terry Boston. "That's what our customers expect, and we believe that's what this new technology will help us deliver. SuperVAR machines will help protect the transmission system from voltage fluctuations and help ensure TVA's continued delivery of affordable, reliable power to the people of the Tennessee Valley."

TVA installed American Superconductor's advanced prototype SuperVAR synchronous condenser at an electrical substation serving a steel mill operated by the Hoeganaes Corporation in Gallatin, Tennessee in August 2004. The SuperVAR machine helps stabilize voltage on TVA's grid by injecting or absorbing reactive power to minimize the sudden and large voltage fluctuations caused by the steel mill during operation of its arc furnace.

"We are delighted to accept this award that recognizes the importance of high temperature superconductor technology in increasing the reliability of electric power transmission," said Greg Yurek, president and CEO of American Superconductor. "This is particularly timely since the Energy Policy Act of 2005, recently signed by President Bush, highlights the need for increased investment in the reliability and modernization of the nation's transmission grid, including mandatory reliability standards. We expect SuperVAR machines to play a substantial role in meeting the new and enforceable reliability standards."

About the R&D 100 Awards

The R&D 100 Awards, now in its 43rd year, names the most innovative new products introduced into the market over the past year as selected by a panel of independent judges and editors of R&D Magazine with superior expertise and long experience in the areas they are judging. The Chicago Tribune has described these prestigious awards as "the Oscars of Invention." This year's R&D 100 Awards will be featured in the September issue of R&D 100 magazine and will be awarded at a Chicago banquet on October 20th.

About Tennessee Valley Authority (TVA)

TVA is the nation's largest public power provider and is completely self- financed. TVA provides power to large industries and 158 power distributors that serve approximately 8.6 million consumers in seven southeastern states. More information is available at http://www.tva.gov/.

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 http://www.amsuper.com.

American Superconductor and design, AMSC, POWERED BY AMSC, and Revolutionizing the Way the World Uses Electricity are trademarks of and SuperVAR is a registered trademark 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 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, 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.

Contact Information

Media Wanda Whitson 508-621-4454
American Superconductor wwhitson@amsuper.com

Media Myra Ireland 423-751-7153
TVA mhireland@tva.gov

Investors Kevin Bisson 508-621-4220
American Superconductor investor@amsuper.com

Source: American Superconductor Corporation

CONTACT: Media: Wanda Whitson of American Superconductor, +1-508-621-
4454, wwhitson@amsuper.com; or Media: Myra Ireland of TVA, +1-423-751-7153,
mhireland@tva.gov; or Investors: Kevin Bisson of American Superconductor, +1-
508-621-4220, investor@amsuper.com

Web site: http://www.amsuper.com/
http://www.tva.gov/
http://www.amsuper.com/

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