American Superconductor Corporation has added a news release to its Investor Relations website.

Date: 7/29/2008 7:30:00 AM

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    --  Successful Electrical Tests of High Temperature Superconductor
        Degaussing Coil to be Followed by Sea Trials Over Next Two
        Years

    --  System is Significantly Lighter and Less Expensive to Install
        and Operate Than Conventional Copper-Based Degaussing Coils

    DEVENS, Mass.--(BUSINESS WIRE)--July 29, 2008--American
Superconductor Corporation (NASDAQ: AMSC), a leading energy
technologies company, today announced that it has supplied critical
components to the Office of Naval Research (ONR) and the Naval Surface
Warfare Center Carderock Division (NSWCCD) Ship Engineering Station
Philadelphia for a high temperature superconductor (HTS) degaussing
coil system that has successfully completed initial electrical testing
onboard the USS Higgins (DDG 76), an 8,000-ton Arleigh Burke-class
destroyer. Powered by AMSC's HTS wire and magnet cable technology, the
coil system will undergo U.S. Navy sea trials over the next two years
on the Higgins.
    Degaussing systems containing multiple tons of copper wire are
utilized in most naval ships to cloak their magnetic signature,
thereby making them much more difficult to be "seen" by magnetic
sensors and magnetically activated mines. These systems are composed
of a network of electrical cables installed around the circumference
of a ship's hull, running from the bow to the stern on both sides of
the vessel.
    "The work on the Higgins represents a true leap ahead for the U.S.
Navy magnetic silencing and HTS communities that takes advantage of
two decades worth of research," said ONR program manager George
Stimak. "HTS degaussing brings with it a new capability in not only
being able to perform the same functionality that legacy copper-based
degaussing systems can accomplish but being able to do the same task
in a much more efficient manner that is less invasive to the ship. It
opens up the design trade space for the naval architect in planning
out the degaussing system to meet the platform's signature
requirement. The Navy's adoption of the technology is a result of many
years of hard work in developing HTS wire and demonstrations funded by
both the Department of Defense and the Department of Energy."
    AMSC produces HTS wires that conduct more than 150 times the
electrical current of copper wires of the same dimensions. With this
"power density" advantage, the Navy estimates that HTS degaussing
systems projected for the LPD-17, LCS, CG(X), DDG-1000, and CVN-21
classes of ship will show a 50%-80% reduction in total system weight
and a reduced total ownership cost compared to the current
copper-based systems. In addition, a 90% reduction in the total
installed cable lengths for all Navy ship classes is expected.
    "With the ability to reduce the size, weight and cost of ship
motors, generators, power cables and degaussing systems, HTS wire
holds tremendous promise in the maritime market," said Dan McGahn,
senior vice president and general manager of AMSC Superconductors. "We
are quite pleased with the successful installation and initial
electrical tests of an AMSC designed and manufactured HTS degaussing
coil on a U.S. Navy guided missile destroyer."
    AMSC has a lengthy history working with the U.S. Navy and the U.S.
Department of Defense (DOD). In April 2006, the company completed the
successful demonstration of the world's first full-scale
superconductor-based degaussing coil, an internally funded research
and development program. The 142-foot (40 meter) HTS degaussing coil
produced 4,100 Amp-turns, a typical level of performance of
conventional copper-based degaussing systems deployed in military
ships today. AMSC's degaussing coil achieved this with an operating
voltage of less than 0.5 volts, 1,000 times lower than copper-based
systems.
    In March 2007, AMSC completed factory acceptance testing of a 36.5
megawatt (49,000 horsepower) HTS ship propulsion motor for the U.S.
Navy. AMSC designed, developed and manufactured the motor along with
strategic partner Northrop Grumman under a contract from the U.S.
Navy's Office of Naval Research (ONR). The motor was developed to
demonstrate the efficacy of HTS primary-propulsion-motor technology
for future Navy all-electric ships and submarines. The HTS motor is
less than one-half the size and weight of the current baseline DDG
1000 propulsion motor and is more efficient over a much wider range of
ship speeds. This results in weight and space advantages, enabling a
significant increase in weapons payload capacity such as more powerful
radar and additional missiles. This same advantage applies to
commercial vessels. The HTS motor is currently awaiting load testing
by the U.S. Navy.
    About the Office of Naval Research (ONR)
    The Office of Naval Research (ONR) coordinates, executes, and
promotes the science and technology programs of the United States Navy
and Marine Corps through schools, universities, government
laboratories, and nonprofit and for-profit organizations. It provides
technical advice to the Chief of Naval Operations and the Secretary of
the Navy and works with industry to improve technology manufacturing
processes.
    About the Naval Surface Warfare Center Carderock Division (NSWCCD)
    The NSWCCD is part of the Naval Sea Systems Command (NAVSEA), the
Navy's central activity for designing, engineering, integrating,
building and procuring U.S. Naval ships and shipboard weapon and
combat systems. The NSWC exists to understand the technical dimensions
of military problems and assist in finding competent solutions through
a combination of government and private industry resources.
    About American Superconductor (NASDAQ: AMSC)
    AMSC is a leading energy technologies company offering an array of
solutions based on two proprietary technologies: programmable power
electronic converters and high temperature superconductor (HTS) wires.
The company's products, services and system-level solutions enable
cleaner, more efficient and more reliable generation, delivery and use
of electric power. AMSC is a leader in alternative energy, offering
grid interconnection solutions as well as licensed wind energy designs
and electrical systems. As the world's principal supplier of HTS wire,
the company is enabling a new generation of compact, high-power
electrical products, including power cables, grid-level surge
protectors, Secure Super Grids(TM) technology, motors, generators, and
advanced transportation and defense systems. AMSC also provides
utility and industrial customers worldwide with voltage regulation
systems that dramatically enhance power grid capacity, reliability and
security, as well as industrial productivity. The company's
technologies are protected by a broad and deep intellectual property
portfolio consisting of hundreds of patents and licenses worldwide.
More information is available at www.amsc.com.
    American Superconductor and design, Revolutionizing the Way the
World Uses Electricity, AMSC, Powered by AMSC, D-VAR, PQ-IVR,
PowerModule, Secure Super Grids, Windtec and SuperGEAR are trademarks
or registered trademarks of American Superconductor Corporation or its
subsidiaries.
    Any statements in this release about future expectations, plans
and prospects for the company, including our expectations regarding
the future financial performance of the company 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. 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: uncertainties
regarding the company's ability to obtain anticipated funding from
corporate and government contracts, to successfully develop,
manufacture and market commercial products, and to secure anticipated
orders; the risk that a robust market may not develop for the
company's products; 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; and the competition encountered by the company. Reference is
made to these and other factors discussed in the "Risk Factors"
section of the company's most recent quarterly or annual report filed
with the Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
the company's views as of the date of this release. While the company
anticipates that subsequent events and developments may cause the
company's views 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 views as of any date subsequent to the date this press
release is issued.
    CONTACT: American Superconductor Corporation (NASDAQ: AMSC)
             Jason Fredette, 978-842-3177
             Director of Investor & Media Relations
             jfredette@amsc.com

    SOURCE: American Superconductor Corporation