| AMSC Receives Order from Dongfang Steam Turbine Works to Develop and Deploy 2.5 Megawatt Wind Energy Systems |
- AMSC's Windtec(TM) Subsidiary Receives Third Multi-Million
Dollar Contract from a Chinese Company in Past Several Months
- Additional AMSC Revenues Expected from Sales of Core Electrical
Components
SHANGHAI--(BUSINESS WIRE)--April 10, 2007--American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, announced today at the China Wind Energy Exhibition and Symposium that it has received its third multi-million-dollar wind energy system development contract from a Chinese company in the past several months. Under the terms of the contract, AMSC's wholly-owned Windtec(TM) subsidiary will develop a portfolio of 2.5 megawatt (MW) wind energy systems for Dongfang Steam Turbine Works Corporation (DTC) of China. Founded in 1966, DTC is one of China's largest steam turbine manufacturers and one of the top four wind energy system manufacturers in China. In addition to development work, Windtec will provide project management during assembly and installation of the first prototype. As is the case with its other licensing and development contracts, AMSC has a right of first refusal to sell all future 2.5 MW wind turbine electrical systems to DTC. "One of the best ways to help satisfy China's growing needs for energy is with zero-emission wind generated electricity," said Wang Wei Min, vice general manager and chief engineer of DTC. "DTC has built a substantial presence in China's wind power market and is now looking to increase its market share through the production of higher power systems. By working with an innovative organization like AMSC's Windtec, we can begin producing these units quickly and cost effectively." With 7,000 employees, DTC is one of the top 100 machinery builders in the country and a key equipment provider in Sichuan Province of China. DTC entered the wind power market in 2004 with the production of 1.5 MW systems. The company plans to commence series production of its new 2.5 MW systems by the end of 2009. "With its decades of leadership in the Chinese power market and its position as one of China's largest producers of wind energy systems, we believe Dongfang Steam Turbine Works is strongly positioned for growth in the Chinese wind energy market," said Greg Yurek, founder and chief executive officer of AMSC. "Our Windtec subsidiary is ideally suited to help customers such as DTC who want to quickly begin manufacturing reliable, high-power wind energy systems in their country rather than import wind energy systems from others." To learn more about AMSC's capabilities in China's wind power market, please visit the company (Booth #081 & 082) at the China Wind Energy Exhibition and Symposium from April 10-12 in Shanghai. About Dongfang Steam Turbine Works Relying on its own technological strength and wide cooperation with international partners, Dongfang Steam Turbine Works has become one of the leading power equipment producers in China. Located in Deyang, Sichuan Province, the company is one of the top three turbine manufacturers and one of the top 100 machinery builders in China. DTC has grown into a large enterprise with total assets of more than 8 billion yuan (US$1 billion), 7,000 employees and land area of 1.37 square kilometres. More information is available at www.dfstw.com. About AMSC AMSC (American Superconductor Corporation - NASDAQ: AMSC) is a leading energy technologies company. The company develops and sells a wide range of products and solutions based on high temperature superconductor (HTS) wires and power electronic systems that dramatically improve the efficiency and quality of electricity during its generation, transmission, distribution and use. The company is a dominant force 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, AMSC is enabling a new generation of compact, high-power electrical products, including motors, generators, power cables, grid-level surge protectors, 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.amsuper.com. American Superconductor and design, Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC, SuperVAR, D-VAR, DVC, PQ-IVR, PowerModule and Windtec are trademarks or registered trademarks of American Superconductor Corporation. Any statements in this release about future expectations, plans and prospects for the company, 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: 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; the competition encountered by the company, including several large Japanese companies. 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.
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