updated 5/12/2011 9:47:40 PM ET 2011-05-13T01:47:40

BENSALEM, Pa., May 12, 2011 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith, representing investors of American Superconductor Corporation, announces a June 6, 2011 deadline to move to be a lead plaintiff in the class action lawsuit filed in the United States District Court for the District of Massachusetts on behalf of all purchasers of the securities of American Superconductor Corporation ("AMSC" or the "Company") (Nasdaq:AMSC) between November 2, 2010, and April 5, 2011, inclusive (the "Class Period").

AMSC provides wind turbine designs and electrical control systems primarily in North America, Europe and the Asia-Pacific. During the Class Period, AMSC's quarterly revenues were largely derived from one primary customer – Sinovel Wind Group Co., Ltd. ("Sinovel"), a manufacturer of wind turbines based in China. Sales to Sinovel represented 79% and 73% of the Company's total revenues reported for the 2010 fiscal second and third quarters, respectively.

The Complaint charges AMSC and certain of its executive officers with violations of federal securities laws. Specifically, defendants misrepresented and/or failed to disclose that: (1) AMSC was providing Sinovel with contracted shipments in excess of its needs; (2) Sinovel was not paying AMSC for certain contracted shipments; (3) AMSC was continuing to provide Sinovel with contracted shipments although Sinovel was not paying for certain prior shipments; (4) as a result, AMSC was improperly recognizing revenue on certain contracted shipments to Sinovel; (5) as a result, AMSC's revenues were overstated; and (6), the Company lacked adequate internal and financial controls.

On April 5, 2011, AMSC disclosed that on March 31, 2011, the last day of AMSC's 2010 fiscal year, that Sinovel refused to accept contracted shipments, and AMSC believed Sinovel intended to reduce its level of inventory before accepting any further contracted shipments. As a result, AMSC's earnings for the 2010 fourth quarter and fiscal year would be substantially below previous forecasts. As a result of accumulated aged accounts receivable due to payment delays and Sinovel's recent refusal to accept March deliveries, AMSC informed investors it was reviewing the appropriateness of the timing of its revenue recognition on approximately $56 million of unpaid shipments in the second, third and fourth quarters of fiscal 2010. On this news, the Company's shares declined $10.41 per share, or 41.84%, to close on April 6, 2011, at $14.47 per share, on unusually heavy trading volume.

No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased AMSC securities between November 2, 2010, and April 5, 2011, you have certain rights and have until June 6, 2011, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to howardsmith@howardsmithlaw.com or visit our website at http://www.howardsmithlaw.com .

CONTACT: Law Offices of Howard G. Smith
         Howard G. Smith, Esquire
         (215) 638-4847
         (888) 638-4847
         howardsmith@howardsmithlaw.com
         www.howardsmithlaw.com

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