October 10, 2006
American Superconductor Receives Follow-on Order from Windtec for PowerModule(TM) Systems to be Utilized in 450 Chinese Wind Turbines
WESTBOROUGH, Mass. --(Business Wire)-- American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, announced today it has received a follow-on order for 450 PowerModule(TM) PM1000 systems from Windtec Systemtechnik GmbH (Windtec). Windtec, based in Austria, is a developer and licensor of proprietary wind turbine system designs and a developer and supplier of wind turbine electrical systems. Windtec will package the PowerModule systems with other electronic components for one of China's largest domestic wind turbine manufacturers. This new order is a three-fold increase over the previous PowerModule order from Windtec, which was announced in February 2006.
According to the Global Wind Energy Council (GWEC), China's installed base of wind generated electricity is expected to grow from 1,260 MW in 2005 to 2,000 MW by the end of 2006, a 59% annual growth rate. GWEC forecasts that the installed base will more than double to 4,750 MW over the next four years, and according to a Chinese State plan, it will reach 20,000 to 30,000 MW in 15 years.
"AMSC and Windtec have worked closely together to customize PM1000 systems to provide voltage regulation and electrical controls for several Windtec wind energy system designs," said Windtec President Gerald Hehenberger. "AMSC's PowerModule systems are best-in-class, and they provide us with tremendous flexibility and capability in the systems we design for our customers. Windtec looks forward to expanding its relationship with AMSC and to capitalizing together on the rapidly growing wind power market."
The PowerModule systems will be shipped primarily in AMSC's fiscal year ending March 31, 2008. This is the fourth order that Windtec has placed with American Superconductor during the last 12 months and is the largest PowerModule order in company history.
"The global wind energy market has become a significant growth area for AMSC, and we expect this will continue for many years," said Greg Yurek, chief executive officer and founder, American Superconductor. "Windtec is a key channel to the Chinese market for our PowerModule systems. We expect to continue to work closely with them to meet the objective of China and additional fast-growing countries around the world to generate more zero-emission electricity from wind."
With this order, American Superconductor will be serving more than 2,500 megawatts (2.5 billion watts) of wind-generated electricity with its D-VAR(R) and PowerModule solutions, exceeding by 25% the company's 2,000-megawatt target for the fiscal year ending March 31, 2007.
PowerModule PM1000 Technology
Each wind turbine generator control system that AMSC supplies to Windtec comprises a PowerModule PM1000 line-side converter and a PowerModule PM1000 generator-side converter. Synchronized operation of the two units is coordinated through high-speed Controlled Area Network (CAN) communications. Integration of Windtec's proprietary software into the PowerModule PM1000 power converter was achieved through AMSC's PowerModule Advanced Configuration Tools (P-ACT(TM)). P-ACT provides an Application Programming Interface (API) that allows engineers access to PM1000 parameters and communication objects. It also provides a development framework to allow automatic linking of customer code with AMSC's core software.
To learn more about AMSC's PowerModule PM1000 product line, please visit http://www.amsuper.com/products/powerConversion/103419060731.cfm, or contact Mr. Perry Schugart at 800-272-2755 (international: +1-262-901-6036).
Windtec, founded in 1995, provides Energy for Generations(TM). It is a developer and licensor of proprietary wind turbine system designs and a developer and supplier of wind turbine electrical systems. Windtec is the leading privately-owned and independent engineering company involved in designing and developing complete electrical systems for wind turbine applications. Its products include control, pitch and variable speed power electronic applications. Its equipment is found in wind farms in many countries around the globe for wind turbines up to a rating of 5 MW. For more information, please visit www.windtec.at
About American Superconductor Corporation (NASDAQ:AMSC)
AMSC is the world's principal vendor of high temperature superconductor (HTS) wire and large rotating superconductor machinery, and it is a world-leading supplier of dynamic reactive power grid stabilization products. AMSC's HTS wire and power electronic converters are at the core of a broad range of new electricity transmission and distribution, transportation, medical and industrial processing applications, including dynamic reactive power grid stabilization solutions, large ship propulsion motors and generators, smart, controllable, superconductor power cables and advanced defense systems. The company's products are supported by hundreds of patents and licenses covering technologies fundamental to Revolutionizing the Way the World Uses Electricity(R). 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 and PowerModule are trademarks or registered trademarks of American Superconductor Corporation.
Any statements in this release about future expectations, plans and prospects for the Company, including those regarding the timing of PowerModule shipment, expected growth in China, AMSC's ability to continue growing its wind power business, 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 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 "Management's Discussion and Analysis of Financial Condition and Results of Operation" 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.