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American Superconductor Reports Increasing Demand for 344 Superconductors Used in Fault Current Limiter Applications

Majority of 344 Superconductor Shipments are for Fault Current Limiters

Demand for Increased Power Grid Reliability Driving Accelerated Product Development Efforts by AMSC and its Customers

Westborough, MA, November 16:  American Superconductor Corporation (Nasdaq:AMSC), a leading energy technologies company, announced today that a majority of the second generation (2G) high temperature superconductor (HTS) wire – known as 344 superconductors – being shipped by AMSC in its current fiscal year ending March 31, 2007 is being used in the development of fault current limiters. Fault current limiters act as high-voltage surge protectors for power grids to increase grid reliability.

“Fault current levels are posing significant challenges in many utility grids around the country and have the potential to cause widespread brownouts and blackouts,” said Syed Ahmed, consulting engineer, transmission and distribution business unit of Southern California Edison. “HTS fault current limiters are a unique solution that will help address and accommodate projected load growth, without endangering our grid operations.”

344 superconductors are smart materials because they possess unique physical properties that allow them to conduct electricity with no resistance under normal operating conditions, while also being able to recognize and then instantaneously suppress large surges of electrical current by switching to the resistive state. Suppressing spikes of electrical current is important because it prevents damage to expensive electrical equipment in power grids.

“The race for market leadership in HTS fault current limiters is on. There has been strong demand for fault current limiters among domestic and overseas utilities, and, with our 344 superconductors now available, we are beginning to capitalize on this significant business opportunity,” said Greg Yurek, chief executive officer and founder, American Superconductor. “In addition to our own fault current limiter product development effort with Siemens, at least seven other electrical equipment developers in four countries are now utilizing 344 superconductors to develop fault current limiters. This is a vast new market opportunity for HTS that the U.S. Department of Energy forecasts to be in the billions of dollars.”

About Fault Current Limiters

When a short circuit occurs in an electrical transmission or distribution system, an electrical generator feeding power into that system responds by creating a surge of current throughout the grid. As additional capacity is added, these surges can exceed the current rating of the circuit breakers that are conventionally used to protect the valuable equipment located throughout the grid. It is estimated that without adequate protection these power surges would cost electric utilities hundreds of millions of dollars a year in equipment damages. An FCL uses high temperature superconductors to instantaneously limit electrical surges, or reduce them to levels that can be handled by existing circuit breaker. Particularly in the high voltage transmission grid, there is no alternative outside of rewiring the grid at enormous cost.

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