3 millionfor the third quarter of fiscal 2008

Cash, cash equivalents, marketable securities and restricted cash at December31, 2008 were $122.6 million This compares with $128.9 million at September 30,2008. The decrease was due to the companys loss in the quarter, cash used forworking capital and unfavorable foreign exchange effects. The company reported backlog as of December 31, 2008 of approximately $602million compared with $597 million as of September 30, 2008 and $168 million asof December 31, 2007. Earnings before interest, taxes, other income and expense, depreciation,amortization and stock-based compensation (EBITDAS) were a negative $1.3 millionfor the third quarter of fiscal 2008. This compares with an EBITDAS loss of $1.9million for the third quarter of fiscal 2007. Please refer to the financialschedules attached to this press release for reconciliation of EBITDAS to GAAPnet loss. "Our two core growth drivers - the Chinese wind power market and the U.S.

"Wind continues to be our growth engine; however,more than $27 million of our $46 million in third-quarter bookings were for ourD-VAR Smart Grid solutions. With these new orders, we now have more than $175million out of the total of $602 million in backlog that we expect to recognizeas revenue in fiscal 2009. Our backlog position for both fiscal 2009 and thefollowing two fiscal years and the strength of our core markets position us forstrong growth in fiscal 2009 and beyond." Financial Forecast"We expect to generate our first GAAP profit in the fourth quarter of fiscal2008," said David Henry, senior vice president and chief financial officer. "Forfull fiscal 2008, we have narrowed our revenue guidance from a range of $175million to $185 million to a range of $178 million to $182 million. While the investments we intend to make infiscal 2009 to help achieve our long-term growth plans may limit us to earningsof a few cents per share for full fiscal 2009, profitability is our toppriority," Henry concluded. Conference Call ReminderIn conjunction with this announcement, AMSC management will participate in aconference call with investors beginning at 10:00 a.m.

ET today to discuss thecompanys results and its business outlook. Those who wish to listen to the liveconference call webcast should visit the "Investors" section of the companyswebsite at The live call also can be accessed by dialing913-312-1294 and using conference ID 1576540. A telephonic playback of the callwill be available from 1:00 p.m ET on February 3, 2009 through 1:00 p.m ET onFebruary 10, 2009. Please call 888-203-1112 and refer to conference ID 1576540to access the playback. About American Superconductor (NASDAQ: AMSC)AMSC offers an array of proprietary technologies and solutions spanning theelectric power infrastructure - from generation to delivery to end use. Thecompany is a leader in alternative energy, providing proven, megawatt-scale windturbine designs and electrical control systems.

The company also offers a hostof Smart Grid technologies for power grid operators that enhance thereliability, efficiency and capacity of the grid, and seamlessly integraterenewable energy sources into the power infrastructure. These includesuperconductor power cable systems, grid-level surge protectors and powerelectronics-based voltage stabilization systems. AMSCs technologies areprotected by a broad and deep intellectual property portfolio consisting ofhundreds of patents and licenses worldwide More information is available at American Superconductor and design, Revolutionizing the Way the World UsesElectricity, AMSC, Powered by AMSC, D-VAR, dSVC, PowerModule, PQ-IVR, SecureSuper Grids, Windtec and SuperGEAR are trademarks or registered trademarks ofAmerican Superconductor Corporation or its subsidiaries.