AMSC D-VAR(R) Solution Selected to Enhance Grid Reliability in China

AMSC D-VAR(R) Solution Selected to Enhance Grid Reliability in China

DEVENS, Mass., Jan. 15, 2013 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC), a global
solutions provider serving wind and grid leaders, today announced that it
recently received an order for a D-VAR reactive compensation solution from
Xiamen Red Phase Instruments Inc. (Red Phase). This is the third order that
AMSC has received from Red Phase. The new D-VAR system, which was shipped in
late 2012, is now being used to resolve power quality issues for China
Southern Power Grid.

Red Phase will install the D-VAR STATCOM system in a 110 kilovolt (kV)
substation in the Yunnan province of China. The D-VAR system is being used to
connect a 35kV bus line to the substation while regulating voltage, mitigating
transient voltage deviations, ensuring high power quality and improving grid
stability.

"To facilitate continued economic growth, China is expanding its power grid at
an extraordinary pace while also focusing on maintaining high power quality
and reliability," said AMSC President and Chief Executive Officer Daniel P.
McGahn. "With its ability to precisely control voltage in a distributed
fashion, we believe our D-VAR systems can be an important part of the
equation. We are pleased to see Red Phase and China Southern turn to us once
again for these advanced systems."

D-VAR dynamic reactive compensation systems are classified as Static
Compensators, or "STATCOMs," a member of the FACTS (Flexible AC-Transmission
System) family of power electronic solutions for alternating current (AC)
power grids. AMSC's D-VAR solutions are able to detect and instantaneously
compensate for voltage disturbances by dynamically injecting leading or
lagging reactive power into the power grid. AMSC has received orders for over
100 STATCOM power grid solutions worldwide. The company's D-VAR STATCOM
customers include more than 20 power grid operators worldwide.

To learn more about AMSC's product offerings for electric utilities and
renewable developers, please visit: http://www.amsc.com/gridtec/index.html.

About Xiamen Red Phase Instruments Inc. (Red Phase)

Red Phase is involved in energy metering and testing, power quality detection,
monitoring, substation and power system operation testing (monitoring)
equipment, electrical product R & D, production and sales. For more
information, please visit www.redphase.com.cn.

About AMSC (Nasdaq:AMSC)

AMSC generates the ideas, technologies and solutions that meet the world's
demand for smarter, cleaner … better energy. Through its Windtec™ Solutions,
AMSC provides wind turbine electronic controls and systems, designs and
engineering services that reduce the cost of wind energy. Through its Gridtec™
Solutions, AMSC provides the engineering planning services and advanced grid
systems that optimize network reliability, efficiency and performance. The
company's solutions are now powering gigawatts of renewable energy globally
and enhancing the performance and reliability of power networks in more than a
dozen countries. Founded in 1987, AMSC is headquartered near Boston,
Massachusetts with operations in Asia, Australia, Europe and North America.
For more information, please visit http://www.amsc.com.

The AMSC logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11339

AMSC, D-VAR, Windtec and Gridtec are trademarks or registered trademarks of
American Superconductor Corporation. All other brand names, product names,
trademarks or service marks belong to their respective holders.

Any statements in this release about future expectations, plans and prospects
for the company, including without limitation expectations regarding our
pending proceedings with Sinovel 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. Such forward-looking statements
represent management's current expectations and are inherently uncertain.
There are a number of important factors that could materially impact the value
of our common stock or cause actual results to differ materially from those
indicated by such forward-looking statements. Such factors include: Our
success in addressing the wind energy market is dependent on the manufacturers
that license our designs; we may not realize all of the sales expected from
our backlog of orders and contracts; our business and operations would be
adversely impacted in the event of a failure or security breach of our
information technology infrastructure; our success is dependent upon
attracting and retaining qualified personnel and our inability to do so could
significantly damage our business and prospects; we rely upon third-party
suppliers for the components and subassemblies of many of our Wind and Grid
products, making us vulnerable to supply shortages and price fluctuations,
which could harm our business; many of our revenue opportunities are dependent
upon subcontractors and other business collaborators; if we fail to implement
our business strategy successfully, our financial performance could be harmed;
problems with product quality or product performance may cause us to incur
warranty expenses and may damage our market reputation and prevent us from
achieving increased sales and market share; our contracts with the United
States government are subject to audit, modification or termination by the
United States government and include certain other provisions in favor of the
government; the continued funding of such contracts remains subject to annual
congressional appropriation which, if not approved, could reduce our revenue
and lower or eliminate our profit; we may acquire additional complementary
businesses or technologies, which may require us to incur substantial costs
for which we may never realize the anticipated benefits; many of our customers
outside of the United States are, either directly or indirectly, related to
governmental entities, and we could be adversely affected by violations of the
United States Foreign Corrupt Practices Act and similar worldwide anti-bribery
laws outside the United States; we have limited experience in marketing and
selling our superconductor products and system-level solutions, and our
failure to effectively market and sell our products and solutions could lower
our revenue and cash flow; we have a history of operating losses, and we may
incur additional losses in the future; our operating results may fluctuate
significantly from quarter to quarter and may fall below expectations in any
particular fiscal quarter; we may require additional funding in the future and
may be unable to raise capital when needed; our new debt obligations include
certain covenants and other events of default. Should we not comply with the
covenants or incur an event of default, we may be required to repay our debt
obligations in cash, which could have an adverse effect on our liquidity; we
have recorded a liability for adverse purchase commitments with certain of our
vendors; should we be required to settle these liabilities in cash, our
liquidity could be adversely affected; if we fail to maintain proper and
effective internal controls over financial reporting, our ability to produce
accurate and timely financial statements could be impaired and may lead
investors and other users to lose confidence in our financial data; we may be
required to issue performance bonds or provide letters of credit, which
restricts our ability to access any cash used as collateral for the bonds or
letters of credit; changes in exchange rates could adversely affect our
results from operations; growth of the wind energy market depends largely on
the availability and size of government subsidies and economic incentives; we
depend on sales to customers in China, and global conditions could negatively
affect our operating results or limit our ability to expand our operations
outside of China; changes in China's political, social, regulatory and
economic environment may affect our financial performance; our products face
intense competition, which could limit our ability to acquire or retain
customers; our international operations are subject to risks that we do not
face in the United States, which could have an adverse effect on our operating
results; adverse changes in domestic and global economic conditions could
adversely affect our operating results; we may be unable to adequately prevent
disclosure of trade secrets and other proprietary information; our patents may
not provide meaningful protection for our technology, which could result in us
losing some or all of our market position; the commercial uses of
superconductor products are limited today, and a widespread commercial market
for our products may not develop; there are a number of technological
challenges that must be successfully addressed before our superconductor
products can gain widespread commercial acceptance, and our inability to
address such technological challenges could adversely affect our ability to
acquire customers for our products; we have not manufactured our Amperium wire
in commercial quantities, and a failure to manufacture our Amperium wire in
commercial quantities at acceptable cost and quality levels would
substantially limit our future revenue and profit potential; third parties
have or may acquire patents that cover the materials, processes and
technologies we use or may use in the future to manufacture our Amperium
products, and our success depends on our ability to license such patents or
other proprietary rights; our technology and products could infringe
intellectual property rights of others, which may require costly litigation
and, if we are not successful, could cause us to pay substantial damages and
disrupt our business; we have filed a demand for arbitration and other
lawsuits against our former largest customer, Sinovel, regarding amounts we
contend are overdue. We cannot be certain as to the outcome of these
proceedings; we have been named as a party to purported stockholder class
actions and stockholder derivative complaints, and we may be named in
additional litigation, all of which will require significant management time
and attention, result in significant legal expenses and may result in an
unfavorable outcome, which could have a material adverse effect on our
business, operating results and financial condition; our 7% convertible note
contains warrants and provisions that could limit our ability to repay the
note in shares of common stock and should the note be repaid in stock,
shareholders could experience significant dilution; our common stock has
experienced, and may continue to experience, significant market price and
volume fluctuations, which may prevent our stockholders from selling our
common stock at a profit and could lead to costly litigation against us that
could divert our management's attention; and new regulations related to
conflict-free minerals may force us to incur additional expenses. These and
the important factors discussed under the caption "Risk Factors" in Part II.
Item 1A and Part 1. Item 1A of our Form 10-K/A for the fiscal year ended March
31, 2012, among others, could cause actual results to differ materially from
those indicated by forward-looking statements made herein and presented
elsewhere by management from time to time. Any such forward-looking statements
represent management's estimates as of the date of this press release. While
we may elect to update such forward-looking statements at some point in the
future, we disclaim any obligation to do so, even if subsequent events cause
our views to change. These forward-looking statements should not be relied
upon as representing our views as of any date subsequent to the date of this
press release.

CONTACT: Kerry Farrell
         Phone: 978-842-3247
         Email: kerry.farrell@amsc.com

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