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AMSC Provides Financial Guidance Update



AMSC Provides Financial Guidance Update

Company Provides Target to Achieve Cash Flow Breakeven

DEVENS, Mass., April 1, 2013 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC), a global
solutions provider serving the wind and power grid industry, today updated its
guidance for the fourth fiscal quarter ending March 31, 2013. The company now
expects that its revenues will be between $19 million and $20 million for the
fourth quarter of fiscal 2012. AMSC also expects to report cash, cash
equivalents and restricted cash of between $49 million and $50 million as of
March 31, 2013. The company's previous guidance for the fourth fiscal quarter
was for revenue of at least $18 million and cash, cash equivalents and
restricted cash of more than $48 million.

AMSC also announced that it believes that it will achieve positive net cash
flows on a quarterly basis by the end of its fiscal year 2014. The company
believes that annualized revenues in the range of $180 million to $190 million
would be needed in order to achieve this target.

"AMSC has been focused on building a sustainable, profitable business through
reduced expenses, minimized cash usage and increased revenue," said Daniel P.
McGahn, President and CEO. "We are working closely with our Windtec Solutions
partners to help them to achieve their growth objectives, which in turn, we
believe will grow our business. In our Gridtec Solutions, we expect to expand
our geographic footprint and further penetrate the industrial and utility
market with our D-VAR^® STATCOM product. For our HTS product line, we see
interest from utilities and potential rotating machine partners around the
world. As a result, we currently believe that we will achieve net positive
cash flows on a quarterly basis by the end of fiscal year 2014."

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.

AMSC, Windtec, Gridtec, and D-VAR 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 expectations regarding our
future revenue and cash balance, our belief regarding the amount of annualized
revenue necessary to achieve positive net cash flows on a quarterly basis, our
belief that working with our Windtec Solution partners to achieve their growth
objectives will grow our business, our expectation regarding our ability to
expand our geographic footprint in our Grid business segment, our belief that
we will achieve positive cash flow on a quarterly basis by the end of fiscal
year 2014 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; we may require additional funding in the
future and may be unable to raise capital when needed; 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 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, and our
other reports filed with the SEC, 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: AMSC Contact:
         Kerry Farrell
         Phone: 978-842-3247
         Email: kerry.farrell@amsc.com

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