AMSC to Provide Wire for Fault Current Limiter in Europe's Largest Superconductor Grid Project

AMSC to Provide Wire for Fault Current Limiter in Europe's Largest
Superconductor Grid Project

Medium Voltage Superconductor Fault Current Limiters Commercially Advertised
in North America by Nexans and AMSC

SAN DIEGO, Jan. 29, 2013 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC), a global
solutions provider serving wind and power grid industry leaders, today
announced at DistribuTECH an order from Nexans, a worldwide expert in the
cable industry, for high temperature superconductor (HTS) wire to be used in a
superconductor fault current limiter (SFCL). The SFCL will act as a surge
protector at "AmpaCity," a project being undertaken by Nexans, RWE Group, one
of Europe's leading electricity and gas companies, and the German research
institute KIT. AmpaCity aims to replace inner-city high-voltage equipment with
superconductor systems.

Medium voltage superconductor systems uniquely provide an alternative to
conventional high voltage installations. The SFCL will provide overload
protection toa superconductor cable, lowering the fault current levels, and
allowing for a safe and reliable interconnection to the grid. The complete HTS
system, comprising of a cable and SFCL, will be manufactured by Nexans. The
SFCL will employ AMSC's Amperium® superconductor wire.

"The AmpaCity project is laying the groundwork for modern inner-city
electricity distribution," said Jean-Maxime Saugrain, Nexans Corporate Vice
President Technical. "The fault current limiter is an important part of the
complete system, and we are happy to utilize AMSC wire for it."

Superconductor fault current limiters act as surge protectors for power grids.
As electricity demand and generation are steadily growing and power grids are
becoming more interconnected, the magnitude of fault currents on power grids
is increasing significantly. By lowering the fault current levels, SFCLs
enable utilities to defer or eliminate equipment replacement, increase
equipment life and enhance system operation.

"AMSC is proud to act as a supplier to Nexans on the landmark AmpaCity
project," said Daniel P. McGahn, President and CEO, AMSC.

Nexans and AMSC recently announced a cooperation to bring the same
medium-voltage SFCLs to the North American market. The resistive SFCL is a
fast and self-acting system that limits currents to safe, manageable values.
The system is passive, typically sitting idle and "invisible" to the grid, but
can sense and then suppress fault currents when they occur, sparing
transformers, switchgear and other equipment from damage and protecting the
broader power grid. Its ability to sit passively eliminates the losses
associated with normal power flow along with many other constraints that are
encountered with conventional solutions.

AMSC's Amperium superconductor wire is able to conduct approximately 200 times
the electrical current of copper wire of similar dimensions. This wire is
being used in numerous high-power applications, including SFCLs, power cables,
motors and generators.

AMSC will be showcasing the SFCL at booth #3348 at DistribuTECH at the San
Diego Convention Center January 29-31, 2013.

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 www.amsc.com.

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

AMSC, Windtec, Gridtec and Amperium 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 our prospects for future growth,
expectations regarding the performance of our products 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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