AMSC Announces Strategic Operational Initiatives and Guidance Update

AMSC Announces Strategic Operational Initiatives and Guidance Update

        Consolidating U.S. Grid Manufacturing and Product Development

Opening New Production Center in Romania for Global Wind Market; Manufacturing
             Operations in China to be Dedicated to Chinese OEMs

DEVENS, Mass., March 19, 2014 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC) today
announced a series of strategic operational initiatives designed to better
capitalize on emerging opportunities in the wind and grid businesses. These
measures include consolidation of the Company's U.S. grid manufacturing and
product development program and diversification of its international wind
power manufacturing operations. Separate from these steps, AMSC expects that,
exclusive of proceeds, if any, from sales of stock under the Company's
At-the-Market facility, it will be net cash flow positive for the fourth
quarter of fiscal 2013 ending March 31, 2014, driven primarily by cash
generated from working capital. AMSC believes that it must grow revenue beyond
current levels to achieve sustainable positive cash flows.

As part of its Gridtec Solutions consolidation, AMSC expects to close its
facility in Middleton, Wisconsin by December 31, 2014 and transition that unit
to its headquarters in Devens, Massachusetts. The Company's New Berlin
facility remains unaffected. All of AMSC's employees in Middleton are expected
to be offered the opportunity to relocate to Massachusetts. AMSC believes that
it can most effectively leverage its Gridtec Solutions team, and realize
important synergies in new product development, by having those employees in
one location. Separately, AMSC also undertook a reduction in force in its
Massachusetts facility.

As part of the diversification of its wind power manufacturing operation, AMSC
is establishing a wind turbine electrical control systems manufacturing center
in Timisoara, Romania. Expected to be operational in fiscal 2014, the
Timisoara plant will make electrical control systems for AMSC's wind customers
located outside of China. AMSC's China facility will continue to support the
Chinese wind market and headcount is being adjusted accordingly. Customers
outside of China will continue to have their systems manufactured in China
until the new facility is operational. These actions are not expected to
increase overall wind manufacturing costs. The Company's Windtec Solutions
product development and support efforts remain unaffected.

By expanding its manufacturing footprint into Eastern Europe, AMSC is
enhancing its distribution capabilities and its global reach in a region that
is a target market for its wind and grid products.Romania is a European Union
member state and cost-efficient manufacturing location with a highly skilled
workforce.

As a result of these actions, AMSC expects to reduce its net headcount between
5% and 10% by December 31, 2014. During this same period of time, AMSC expects
to record restructuring and other charges associated with these actions for
severance, facility closure, relocation, operating inefficiencies, and other
costs of between $4 million and $6 million, excluding any non-cash impairment
charges which have yet to be determined. Of these charges, AMSC expects to
record approximately $1 million in restructuring charges in the fourth quarter
of fiscal 2013. Once these actions are completed, AMSC expects to fully
realize approximately $3 million of annualized cost savings starting in the
fourth quarter of fiscal 2014.

Company Updates Financial Guidance

AMSC also announced that for the fourth quarter of fiscal 2013 ending March
31, 2014, it expects its revenues to be in the range of $14 to $16 million.
Including the restructuring charge referred to above and a non-cash charge of
approximately $5 million for a loss on the extinguishment of the Company's
convertible note, the Company expects its net loss for the fourth quarter of
fiscal 2013 to be in the range of $20 million to $22 million, or $0.27 to
$0.30 per share. Excluding these and other unusual charges, AMSC expects that
its non-GAAP net loss in the fourth quarter of fiscal 2013 to be in a range of
$10 million to $12 million or $0.14 to $0.16 per share. AMSC expects that,
exclusive of proceeds, if any, from sales of stock under the Company's
At-the-Market facility, it will be net cash flow positive for the fourth
quarter of fiscal 2013 ending March 31, 2014, driven primarily by cash
generated from working capital. The Company is not providing specific guidance
with respect to cash flows in any future periods beyond the fourth quarter of
fiscal 2013.Refer to the table below for a reconciliation of forecast GAAP
net loss to non-GAAP net loss.

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 are 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.

AMSC, Windtec, Gridtec, and Smarter, Cleaner … Better Energy are trademarks or
registered trademarks of American Superconductor Corporation. All other brand
names, product names, trademarks or service marks belong to their respective
holders.

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, and additional financing arrangements for the Company, including
without limitation our beliefs regarding our expectations regarding the
Company's restructuring actions, including the costs and timing of the
actions, expectations regarding synergies as a result of the Company's
consolidation, product and market plans, beliefs regarding our expected
financial results and liquidity, expectations that the Company will be net
cash flow positive in the fourth quarter of fiscal 2013 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.

RECONCILIATION OF FORECAST GAAP NET LOSS TO NON-GAAP NET LOSS         
(In millions, except per share data)                                  
                                               Three months ending 
                                                March 31, 2014

                                               High      Low       
Net loss                                        ($22.0)   ($20.0)   
Restructuring and impairment charges            $1.0      $1.0      
Amortization of acquisition-related intangibles $0.1      $0.1      
Stock-based compensation                        $3.5      $3.5      
Non-cash interest expense                       $1.5      $1.5      
Loss on extinguishment of debt                  $5.0      $5.0      
Consumption of zero-cost inventory              ($1.1)    ($1.1)    
Non-GAAP net loss                               ($12.0)   ($10.0)   
Non-GAAP net loss per share                     ($0.16)   ($0.14)   
Weighted average shares outstanding             73.0     73.0     

Note: Non-GAAP net loss is defined by the company as net loss before
restructuring and impairment charges; amortization of acquisition-related
intangibles; stock-based compensation; non-cash interest expense; loss on
extinguishment of debt; and consumption of zero cost-basis inventory; change
in fair value of derivatives and warrants and other unusual charges; net of
any tax effects related to these items. The company believes non-GAAP net loss
assists management and investors in comparing the company's performance across
reporting periods on a consistent basis by excluding these non-cash or other
non-recurring charges that it does not believe are indicative of its core
operating performance. The company also regards non-GAAP net loss as a useful
measure of operating performance and cash flow to complement operating loss,
net loss and other GAAP financial performance measures. In addition, the
company uses non-GAAP net loss as a factor in evaluating management's
performance when determining incentive compensation and to evaluate the
effectiveness of its business strategies.

Generally, a non-GAAP financial measure is a numerical measure of a company's
performance, financial position or cash flow that either excludes or includes
amounts that are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with GAAP. The
non-GAAP measures included in this release, however, should be considered in
addition to, and not as a substitute for or superior to, operating income,
cash flows, or other measures of financial performance prepared in accordance
with GAAP. A reconciliation of non-GAAP to GAAP net loss is set forth in the
table above.

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

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