Business Editors/Energy Writers

WILMINGTON, N. 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. The report's
authors are Cyrus Hirjibehedin , Christopher Lutz and Heinrich.

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"GE is responding to a growing demand
for its digital monitoring and control systems as operators in the
United States and around the world seek to upgrade their existing
reactors.
The company's products are supported by hundreds of patents and licenses
covering technologies fundamental to Revolutionizing the Way the World Uses
Electricity(TM).

In addition to exploring the basic properties of magnetic materials, the
IBM researchers expect to use this new technique in the future to:


-- Explore the limits of magnetic data storage , by engineering the energy
required to flip the collective orientation of a small number of
magnetically coupled atoms. Their spins tend to align in the same direction and thus produce
the external magnetic field that we can see or feel.

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GE Energy's nuclear business, headquartered in Wilmington , North
Carolina, develops advanced light water reactors and provides a wide
array of technology -based products and services to help owners of both
boiling and pressurized water reactors safely operate their facilities
with greater efficiency and output.

He is also well known for his work on magnetic
materials and his discoveries related to magnetic bubble technologies.

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, American
Superconductor Corporation (Nasdaq: AMSC), a leading electricity solutions
company, today announced that Alex Malozemoff, Ph. Malozemoff and co-recipient Venkat Selvamanickam at two major
events: the U. 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. More information is available at http://www.

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The system collects and processes signals
from in-core detectors and communicates with the core-monitoring
computer, display computer and other plant systems. "His
groundbreaking efforts in the materials science and underlying physics of the
materials at the heart of 2G HTS wire continue today, as will be demonstrated
in the presentations to be made by American Superconductor this week at the
DOE Peer Review meeting in Washington."
Dr.

Different specialties are separated into their divisions.

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DOE's Superconductivity for Electric Systems 2005 Annual Peer
Review, in Washington D. Subscribers include
executives, technologists, officials, and investors in every country
developing advanced technologies.com. Other magnetic
materials, such as manganese, are called antiferromagnetic because their
atomic spins tend to align in the opposite direction from their neighbors,
which yields no external magnetic field but interesting spintronic
properties.

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GE is supplying PPL Susquehanna , LLC with its Power Range Neutron
Monitor (PRNM) system, based on GE's high-speed digital technology .
"This order is further evidence of the strong relationship between
GE Energy and PPL Susquehanna ," said Andy White, President and CEO of
GE Energy's nuclear business. Unit 1 began commercial operations in 1983 and Unit 2 in
1985.
PPL Susquehanna, LLC is a subsidiary of Allentown-based PPL Corp.

markets and delivers
electricity to customers in Pennsylvania, the United Kingdom and Latin
America ., during the awards luncheon August 2, and the 2005
Cryogenic Engineering Conference and International Cryogenic Materials
Conference, in Keystone Colorado, during the Awards luncheon on August 31. Malozemoff holds a Ph.

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 . All other trademarks are the property of their
respective owners

Any statements in this release about future expectations, plans and
prospects for the Company, including 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. "We can now position atoms and then measure and
control their magnetic interactions within precisely designed structures."

The new method, called spin-excitation spectroscopy, uses IBM 's special
low-temperature scanning tunneling microscope designed for use with a broad
range of magnetic fields up to 140,000 times stronger than the earth's."

These new experimental results are published in today's issue of Science
Express, Science magazine's online advance publication of reports judged by
the journal's editors to be especially timely and important.

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Susquehanna 's two reactors are among the 103 units currently
operating in the United States.
"Alex has led our research and development strategy and work on second
generation high temperature superconductor wires since we began this activity
in 1995," said Greg Yurek, president and CEO of American Superconductor . He
is also charged with management of American Superconductor's collaborative
programs, including the firm's technical consultants, its patent estate, its
interaction with the federal High Temperature Superconductivity Technology
Centers, its work with university and government laboratories and its
collaborative research and development with strategic alliance partners." This phenomenon is a
factor in determining the maximum amount of current a superconductor can
carry, and a key element in the development of applications with
superconductor materials. Published 24 times a year, interviews ,
analysis, and updates provide strategic insight into the development and
commercialization of superconductors in medical, electric power,
communications, military, transportation, industrial processing, basic
science, and other markets.
-- Investigate how engineered spin interactions could be applied to
quantum information systems, such as quantum computers.

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S.

About GE Energy

GE Energy is one of the world's leading suppliers of power
generation and energy delivery technology, with 2004 revenues of $17. Based in Atlanta, Georgia, GE Energy provides equipment,
service and management solutions across the power generation, oil and
gas, transmission and distribution , distributed power and energy
rental industries. WESTBOROUGH, Mass.C.
In his position as Chief Technical Officer, Dr.

About Superconductor Week

Founded in 1987, Superconductor Week is the leading newsletter covering
the technology and business of superconductivity.

Spintronics is an emerging class of new electronic circuits that exploit
the magnetic orientations of electrons and atoms -- the quantum property
called "spin" -- in addition to or instead of the traditional flow of
electrical charges.

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It
will upgrade Susquehanna's original power monitoring equipment.
The contract includes design, hardware and software, engineering,
licensing support, operator display assemblies, installation support
and training.

Alex Malozemoff Chief Technical Officer of American Superconductor Awarded Superconductor Industry Person of the Year Award by Superconductor Week

D.
Recognized for his pioneering work in the field of superconductivity, Dr. degree in physics and
chemistry from Harvard University.

American Superconductor and design, AMSC, POWERED BY AMSC, and
Revolutionizing the Way the World Uses Electricity are trademarks of American
Superconductor Corporation.
The researchers first move atoms into position and then measure the
interactions between their atomic spins, which are the fundamental sources
of magnetism.

"This kind of exploratory research is essential for the long-term future of
the computer industry," said Gian-Luca Bona, manager of science and
technology at IBM Almaden. Electron spins can be either "up" or "down .

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GE is the plant's original equipment
manufacturer.

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GE Energy to Supply Monitoring Control Systems for Susquehanna Nuclear Power Station

in Materials Science and
Engineering from Stanford University and a B. Two IBM scientists in Switzerland won the 1986
Nobel Prize in Physics for their early 1980s invention of the scanning
tunneling microscope (STM).

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"
Susquehanna, a two-unit, 2,352-megawatt boiling water reactor
(BWR) station, is owned by PPL Susquehanna, LLC (90 percent) and the
Allegheny Electric Cooperative, Inc.S. Malozemoff, acknowledged the world over as a leader in the field of
superconductivity , joined American Superconductor in January 1991 following a
distinguished career at IBM, where he spent 19 years in a variety of research
and management positions. 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. We
will then need alternative structures and, perhaps, altogether different
ways of computing.


Background

The new technique builds upon the IBM team 's development in late 2004 of
spin-flip spectroscopy -- a method for measuring magnetic properties of
single atoms.

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The new
system will then be installed in Unit 2 in March 2007, during that
reactor 's scheduled outage.
-- Determine the feasibility of spin-based wires and a spin version of
the molecular-motion cascade, the group's 2002 achievement that included an
arrangement of molecules that formed a working computer circuit some
260,000 times smaller than its conventional design in silicon (or about 50
years of circuit-shrinking at Moore's Law pace).

For their spin-excitation spectroscopy experiments, the IBM scientists were
successful when they converted sections of a smooth copper metal surface
into a one-atom-thick coating of copper nitride, an insulator .

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He is a fellow of the American Physical
Society and a senior member of the IEEE. There are a number of important
factors that could cause actual results to differ materially from those
indicated by such forward-looking statements.
IBM scientists have developed a powerful new
technique for exploring and controlling magnetism at its fundamental atomic
level. Experiments
measuring atomic magnetic properties require an insulating surface because
the large numbers of available conducting electrons within a metal would
overwhelm and cancel out any spin variations from individual atoms being
studied.

Sites and links concerning the science of nuclear physics.

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executive vice president
and chief technology officer, has been selected as a co-recipient of
Superconductor Week's 2005 Superconductor Industry Person of the Year Award.

The new method promises to be an important tool in the quest not only to
understand the operation of future computer circuit and data-storage
elements as they shrink toward atomic dimensions, but also to lay the
foundation for new materials and computing devices that leverage atom-scale
magnetic phenomena. on the surfaces are the manganese structures, one to 10 atoms long. "Sometime in the next couple of decades, it
will be impossibly difficult to continue improving transistors and other
traditional microelectronic circuit elements by simply shrinking them.

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----GE Energy's
nuclear business has been awarded a multi-million dollar contract to
upgrade monitoring and control systems at PPL's Susquehanna nuclear
power plant near Berwick, Pa. (10 percent).

(Click here for details) IBM researchers performed atom-scale magnetism experiments.

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The
group's results include:


-- Positioning individual atoms on surfaces,
-- Inventing an electrical switch with a single atom as the active
element,
-- Inventing a new kind of electron trap called a "quantum corral,"
-- Discovering the "quantum mirage" effect, in which an electron's
quantum wave pattern is used to project information,
-- Demonstrating a complete functional computational circuit based on the
"molecule cascade" motion of individual molecules that is 260,000 times
smaller than that which could be made by the best contemporary chip-making
methods, and
-- Demonstrating spin-flip spectroscopy: using an STM to probe the spin-
state of a single atom and measure the energy required to flip a single
spin.

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The PRNM system will be installed in Unit 1 in March 2006, during
the reactor's biannual refueling and maintenance outage.,
which controls more than 12,000 megawatts of generating capacity in
the United States, sells energy in key U.S.

PRESS RELEASE IBM Scientists Develop New Way to Explore and Control Atom-Scale Magnetism

In their experiments, the IBM researchers created chains of up to 10
manganese atoms atop an extremely thin electrically insulating surface and
measured how the magnetic properties changed as each new atom was added." Aligning
spins in a material creates magnetism. But materials such as iron and cobalt have an unequal numbers
of electron spins and thus are magnetic.

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It is fitting, indeed, for Alex to be
one of the recipients of this prestigious award from Superconductor Week. Those experiments were done using an aluminum oxide
insulating surface , but it was impossible to move atoms around on that
surface.

Household magnets are made of ferromagnetic materials, such as iron or
cobalt.

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In addition, the forward-looking statements included in this press
release represent the Company's views as of the date of this release.
They found that chains with an even number of atoms had no net magnetism,
while chains with an odd number of atoms showed net magnetism. Techniques like this can help us gain the knowledge
needed to create those alternatives.

This new result is the latest in a series of achievements in nanoscale
science at IBM Research.

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The station is
located on 2,100 acres along the Susquehanna River in Salem Township ,
Luzerne County, 25 miles southwest of Wilkes-Barre. 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 a robust market may not develop for the Company's products; 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. Indeed, while the IBM team first showed how to use the STM to
move and position individual atoms atop metal surfaces back in 1990, until
now no one has been able to move and position atoms on insulating surfaces
because those surfaces tend to be atomically complex , rough, easily damaged
and/or have varying attractive forces with the atoms. Most materials are non -magnetic
because they have equal numbers of up and down electron spins, which cancel
each other .

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3
billion.
The award is the only international award recognizing individual achievement
in the global effort to develop and commercialize both high and low
temperature superconductors.
Mark Bitterman, Superconductor Week's Executive Editor, will present the
award to Dr.amsuper. 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.

"We have developed a window into the atomic heart of magnetism," said
Andreas Heinrich, research staff member at IBM's Almaden Research Center in
San Jose, California. Over the past 16 years, IBM Almaden
researchers have pioneered the use of STMs for positioning atoms into
precisely designed structures that reveal fundamental atomic-scale
properties and may have potential uses in information technology.

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C.

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GE Energy's PRNM technology takes advantage of several enhanced
features to improve plant operations and includes automated system
surveillance testing.
The primary function of the PRNM is to monitor the reactor power
level and initiate automatic protective actions to ensure compliance
with plant safety limits. Malozemoff has been
responsible for managing all research and development programs in materials
science, applied physics, materials processing, and conductor development.
Malozemoff is a co-discoverer of "giant flux creep.
A California native, Dr.D.

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