American Superconductor Corp (AMSC)

[jmhollen]

American Superconductor to Supply High Temperature Superconductor Wire for World's First 100 Megawatt Superconductor Generator

WESTBOROUGH, Mass.--(BUSINESS WIRE)--Oct. 16, 2001--
First Generation HTS Wire Chosen by GE for Commercial

Superconductor Generators

American Superconductor Corporation (Nasdaq: AMSC, news, msgs), a leading global supplier of superconductor products and power electronic switches for the power infrastructure, today announced that it has been selected by the General Electric Company (NYSE: GE, news, msgs) as the primary supplier of high temperature superconductor (HTS) wire for development of the world's first 100 MW HTS generator. The HTS generator project, valued at $26 million, is one of seven recently announced projects that are part of the U.S. Department of Energy Superconductivity Partnership Initiative (SPI) program.


Electric utility generators typically produce power in the range of 100 to 1,200 MW. GE believes its innovative HTS generator will provide a breakthrough in high-efficiency generators creating the potential for annual energy savings of several billion kilowatt hours that can lead to millions of dollars in energy savings, reduced emissions, and enhanced competitiveness of U.S. utilities in growing global markets.

Recent progress made by American Superconductor in HTS wire manufacturing has helped pave the way for the development of HTS generators with the potential for competitive cost, high reliability, rapid market introduction, and a high probability of acceptance by the power industry. American Superconductor expects that its first generation HTS wire will meet GE's cost and performance targets for commercial generators.

"Utility generators, industrial ship propulsion motors, and power cables represent a huge market opportunity for our HTS wires," said Greg Yurek, president and chief executive officer, American Superconductor. "The demand for HTS wires for utility generators alone could exceed the annual capacity of our new HTS wire manufacturing plant, the first commercial HTS wire manufacturing plant in the world."

The GE HTS generator is the second recently announced DOE-SPI project for which American Superconductor will be providing its high-performance HTS wire. The company announced on September 26, 2001 that it would supply Pirelli Power Cables and Systems with HTS wire for a half-mile long, underground cable to be installed in Long Island Power Authority's transmission grid on Long Island, New York.

About American Superconductor

American Superconductor Corporation is a world leader in developing technologies and manufacturing products utilizing superconductor wire and solid-state power electronic switches for the electric power infrastructure. American Superconductor's products, and those sold by electrical equipment manufacturers that incorporate its products, can dramatically increase the bandwidth and reliability of power delivery grids, reduce manufacturing and operating costs, and conserve resources used to produce electric power. Founded in 1987, the company is headquartered in Westborough, Mass. For more information, visit http://www.amsuper.com.

Certain statements in this release, including 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. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include the uncertainties that: the company will be able to obtain the anticipated funding from corporate and government contracts; the company will be able to successfully develop and manufacture commercial products; a robust market will develop for the company's products; and the company will secure anticipated orders. Additionally such factors include: the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the company will infringe intellectual property rights of others; the competition encountered by the company, including several large Japanese companies; the amount and timing of the company's future cash requirements and the availability of satisfactory financing sources. Reference is made to these and other factors discussed in the "Management's Discussion and Analysis of Financial Condition and Results of Operation" section of the company's periodic reports filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's estimates as of October 16, 2001. While the Company anticipates that subsequent events and developments may cause the Company's estimates to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's estimates or views as of any date subsequent to October 16, 2001.



CONTACT: American Superconductor Corporation
Media Contact: Jeff Nestel-Patt 508-621-4375
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Investor Contact: Stan Piekos, 508-621-4220
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