Investors

Dear Investor:

Thank you for your interest in American Superconductor (NASDAQ: AMSC). With a host of energy technologies for the wind power and power grid markets, we are among the fastest growing companies on the U.S. public markets.

AMSC operates out of two highly complementary business units: AMSC Power Systems and AMSC Superconductors. At the heart of AMSC Power Systems is our PowerModule™ power converter technology. Based on advanced power semiconductor technology, these proprietary core products are sold individually for a variety of markets and applications. We also include these power converters in our wind turbine electrical systems and core components, and we assemble them into larger voltage regulation solutions for the power grid, industrial sites and wind farms.

We bolstered our alternative energy offerings in 2007 with the acquisition of WindtecTM, an Austria-based provider of proprietary wind turbine designs. Our AMSC Windtec division is helping companies in countries such as Canada, China, India and Turkey to become leading wind turbine manufacturers for their local markets. AMSC Windtec also serves as a rapidly expanding sales channel for our wind turbine electrical systems and core components.

Our core product at AMSC Superconductors is high temperature superconductor (HTS) wire, which is able to transmit 150 times the amount of energy as a copper wire of the same dimensions. This “power density” advantage translates into compelling system economics for numerous applications. For instance, electric utilities can replace many conventional copper cables with just one superconductor cable, reducing construction costs and leaving valuable underground real estate available for other uses. Motor and generators leveraging the power of HTS have compelling size, weight, efficiency, and acoustic benefits compared with traditional copper counterparts. While the worldwide market for power cables, motors and generators represents a multi-billion-dollar annual opportunity for AMSC, they are just a few of the areas in which our wire is being used.

Based on the strength of our offerings for the wind power and power grid markets, AMSC is achieving considerable financial success as we doubled our revenue in our most recent fiscal year. Momentum is building throughout our company, and we look forward to reporting back to you on our many successes. I encourage you to track our progress closely.

Sincerely,

Gregory J. Yurek
Chairman, Founder and Chief Executive Officer

Corporate Headquarters American Superconductor 64 Jackson Road Devens, MA 01434-4020 Phone: 978-842-3000 Fax: 978-842-3024		Transfer Agent and Registrar American Stock Transfer & Trust Company 59 Maiden Lane Plaza Level New York, NY 10038 Phone: 800-937-5449 or 718-921-8200 Fax: 718-236-2641

Legal Counsel Wilmer Cutler Pickering Hale and Dorr LLP 60 State Street Boston, MA 02109		Auditors PricewaterhouseCoopers LLP One Post Office Square Boston, MA 02109

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