FAQ

STOCK RELATED

1. When was AMSC founded and by whom?

AMSC was founded in April of 1987 by Yet-Ming Chiang, PhD; David A. Rudman, PhD; John B. Vander Sande, PhD; and Gregory J. Yurek, PhD.

2. When was AMSC’s initial public offering (IPO)?

AMSC common stock began trading as of its initial public offering on December 11, 1991.

3. Have there been any additional public offerings of AMSC stock?

Yes, AMSC has had several successful public offerings since its initial public offering, most recently in March 2005.

4. Has AMSC had any stock splits?

Yes, the company executed a 3 for 2 stock split on November 28, 1994.

5. Does AMSC have preferred stock?

No, all shares issued and outstanding are common shares.

6. Does AMSC pay a dividend on its common stock?

No, AMSC does not pay a cash dividend on its common stock.

7. Does AMSC have a direct stock purchase program?

No, AMSC does not have a direct stock purchase program. If you are interested in purchasing the company’s stock, please contact a registered broker.

8. How many shares of common stock does AMSC have outstanding?

As of March 31, 2007, AMSC had approximately 36 million shares outstanding.

9. When does AMSC's fiscal year end?

AMSC’s fiscal year ends on March 31.

10. How many people does AMSC employ?

As of March 31, 2007, AMSC employed 263 individuals worldwide.

11. Who is AMSC's stock transfer agent?

AMSC’s transfer agent is American Stock Transfer & Trust Company. If you have any questions regarding your stock certificates, please contact them by telephone at 800-937-5449.

12. Who is AMSC's independent accounting firm?

PricewaterhouseCoopers LLP in Boston.

TECHNOLOGY RELATED

1. What is superconductivity?

Superconductivity is a basic property of materials that causes them, when cooled below a critical temperature level, to lose all resistance to the flow of electrons.

2. What are the potential applications of superconductivity?

Potential applications include high-capacity cables capable of transmitting three to five times more power through existing rights of way; compact, efficient and powerful motors with output ratings of 1000 hp and above; inherently safe, environmentally benign and "smart" transformers; compact and efficient generators that provide fast reactive power support; and stand-alone fault current limiters that will protect power grids from troublesome current surges that can cause costly outages and damage utility system components.

3. What does "high temperature" superconductivity mean?

Conventional superconductors must be chilled to a few degrees above absolute zero (-459° F), requiring costly liquid helium. In the late 1980s, the discovery of a new family of ceramic high-temperature superconductor (HTS) materials sparked renewed utility interest in the field. These superconductors are capable of operating at five to 20 times higher temperatures, using liquid nitrogen as a coolant. This less expensive, widely available substance makes commercial applications of HTS technology much more economically viable.

4. What is the potential market?

"Transmission power cables" are means to conduct power from the source of power production (generator) at transmission voltages underground to distribution substations. AMSC's technology addresses the opportunity for power transmission cables, which today is an addressable market of more than $5 billion annually for installed cable systems. These cables today use copper or aluminum wires today. Depending on the design of the cable, HTS wire is typically 20% to 50% of the value of a cable.

5. How quickly does the wire degrade?

The key factor that leads to degradation of electrical systems that utilize copper and aluminum wires is heat - heat that is generated by electrical resistance. This source of degradation is eliminated in HTS systems because HTS wires exhibit either zero resistance (DC systems) or very little resistance (AC systems). On top of that, the HTS wires are maintained at cryogenic temperatures. AMSC's HTS wires are rugged and durable. AMSC wires that have been operated in electrical systems for years have shown no degradation, as expected. Bottom line: it is expected that HTS wires will not degrade over the typical 20 to 40 year lifetime of large-scale electrical equipment, such as power cables.