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American Superconductor to Supply Wind Turbine Designs in Multi-Million-Dollar Contract

American Superconductor Corporation, a leading energy technologies company, announced today that it has signed a multi-million-dollar contract to provide wind turbine designs to China’s XJ Group Corporation (XJ Group).

Under the terms of the contract, AMSC’s wholly owned AMSC Windtec™ subsidiary will provide XJ Group with designs for its WT2000df, a 2 megawatt (MW) doubly fed induction wind turbine. In addition to the upfront fee, AMSC also expects to provide core electrical components for the 2 MW wind turbines manufactured by XJ Group.

Founded in 1970 and based in the city of Xuchang in the Henan province of China, XJ Group is one of China’s largest manufacturers of power equipment and transmission and distribution technologies for the electric utility market. The company’s advanced technologies and services are aimed at improving the performance and efficiency of its customers’ operations. XJ Group employs more than 5,000 people worldwide and operates facilities in 30 countries globally, including 40 locations throughout China.

“The wind power market in China and around the world continues to expand at a dramatic rate,” said Li Fusheng, President of XJ Group. “We selected AMSC Windtec because of its proven turbine designs, its ability to help us localize our supply chain and its high-performance wind turbine electrical systems. In addition to utilizing standard AMSC Windtec designs for the WT2000df, AMSC Windtec and XJ Group will jointly adapt the turbine for specific environmental and wind conditions, such as the low average wind speeds, low air density and severe climates encountered in certain regions of China. With our years of expertise and relationships in the electric utility industry, we plan to become a major participant in the wind power industry.”

While XJ Group initially expects to produce wind turbines for the Chinese market, the company has the right to sell the WT2000df worldwide. XJ Group plans to have its first prototypes installed and commissioned by the end of 2009 and expects to begin shipping wind turbines to customers in 2010.

“XJ Group is a well established manufacturer and supplier of products and services for the Chinese electric utility industry,” said Greg Yurek, founder and chief executive officer of AMSC. “XJ Group will be a strong partner to address the growing needs for high power, high efficiency wind turbines in China and around the world. We look forward to working with them to bring their first wind turbines to market.”

Recent reports have indicated that China may increase its wind power capacity from 6 gigawatts at the end of 2007 to 100 gigawatts by 2020. This type of expansion would require approximately 47,000 2 MW wind turbines over a 12-year timeframe.

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