AMSC Announces New Term Loan and "At-The-Market" Issuance Program

AMSC Announces New Term Loan and "At-The-Market" Issuance Program

DEVENS, Mass., Nov. 18, 2013 (GLOBE NEWSWIRE) -- American Superconductor
Corporation (Nasdaq:AMSC), a global solutions provider serving wind and power
grid industry leaders, today announced that it has entered into an amendment
(the "Amendment") to its existing senior term loan with Hercules Technology
Growth Capital, Inc. and an At Market Issuance ("ATM") Sales Agreement with
MLV & Co. LLC.

The terms of the Amendment with Hercules provide, among other things, AMSC
with a total borrowing capacity of $15 million, representing $10 million of
incremental borrowing capacity based on the outstanding balance of the
existing term loan. Upon execution of the Amendment, Hercules advanced this
$10 million (the "New Term Loan") to AMSC. The New Term Loan bears interest of
11%, which is the same rate as the existing term loan. The company is
obligated to make interest only payments for up to the first six months after
the date of a new advance (nine months should the company achieve certain
revenue targets), after which it is obligated to begin re-paying the New Term
Loan in equal monthly installments through November 1, 2016.

In conjunction with entering into the Amendment, the company issued warrants
to purchase up to 256,410 shares of common stock to Hercules at an exercise
price of $1.95 per share. In addition, the company amended the terms of its
existing warrant with Hercules, originally issued on June 5, 2012, to lower
the exercise price to $1.95.

For more information about the New Term Loan, please refer to AMSC's filing on
Form 8-K today.

Under the terms of the ATM Sales Agreement, AMSC may, at its discretion, from
time to time, sell through MLV, as sales agent, such number of shares of
common stock of the company ("Shares") as would result in aggregate gross
proceeds to the company of up to $30 million.MLV, at AMSC's discretion and
instruction, will use its commercially reasonable efforts to sell the Shares
at market prices from time to time, including sales made directly on The
NASDAQ Global Select Market.

Sales in the ATM offering, if any, would be made pursuant to the prospectus
supplement dated November 15, 2013, which supplements the prospectus dated
September 25, 2013, included in the shelf registration statement that AMSC
filed with the Securities and Exchange Commission ("SEC") on September 13,
2013.

For more information about AMSC and the ATM offering, you are encouraged to
read the prospectus for the ATM offering, as supplemented by the prospectus
supplement, and other documents incorporated by reference into such
prospectus.You may obtain these documents on the SEC's website at
www.sec.gov.

This press release does not constitute an offer to sell or a solicitation of
an offer to buy, nor may there be any sale of AMSC's common stock in any state
or jurisdiction in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities law of any state
or jurisdiction.

This press release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). Any statements in this release about future expectations, plans,
prospects or sales under the ATM offering 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: We have
experienced recurring operating losses and recurring negative cash flows from
operations which raise substantial doubt about our ability to continue as a
going concern. This substantial doubt has resulted in a qualified opinion from
our auditors with an explanatory paragraph regarding our ability to continue
as a going concern. We believe this opinion may have an adverse effect on our
customer and supplier relationships; 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; new regulations related to conflict-free minerals may force us to incur
significant additional expenses; our contracts with the U.S. government are
subject to audit, modification or termination by the U.S. 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 experienced recurring losses from operations and
negative operating cash flow; these factors raise substantial doubt regarding
our ability to continue as a going concern; 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 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; 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;. These and the important factors
discussed under the caption "Risk Factors" in Part 1. Item 1A of our Form 10-K
for the fiscal year ended March 31, 2013, 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

AMSC Logo