The D-VAR system is being used to connect a 35kV bus line to the substation while regulating voltage, mitigating transient voltage deviations, ensuring high power quality and improving grid stability.

Devens, MA – January 15, 2013 – AMSC (Nasdaq: AMSC), a global solutions provider serving wind and grid leaders, today announced that it recently received an order for a D-VAR reactive compensation solution from Xiamen Red Phase Instruments Inc. (Red Phase). This is the third order that AMSC has received from Red Phase. The new D-VAR system, which was shipped in late 2012, is now being used to resolve power quality issues for China Southern Power Grid.

Red Phase will install the D-VAR STATCOM system in a 110 kilovolt (kV) substation in the Yunnan province of China. The D-VAR system is being used to connect a 35kV bus line to the substation while regulating voltage, mitigating transient voltage deviations, ensuring high power quality and improving grid stability.

"To facilitate continued economic growth, China is expanding its power grid at an extraordinary pace while also focusing on maintaining high power quality and reliability," said AMSC President and Chief Executive Officer Daniel P. McGahn. "With its ability to precisely control voltage in a distributed fashion, we believe our D-VAR systems can be an important part of the equation. We are pleased to see Red Phase and China Southern turn to us once again for these advanced systems."

D-VAR dynamic reactive compensation systems are classified as Static Compensators, or "STATCOMs," a member of the FACTS (Flexible AC-Transmission System) family of power electronic solutions for alternating current (AC) power grids. AMSC's D-VAR solutions are able to detect and instantaneously compensate for voltage disturbances by dynamically injecting leading or lagging reactive power into the power grid. AMSC has received orders for over 100 STATCOM power grid solutions worldwide. The company's D-VAR STATCOM customers include more than 20 power grid operators worldwide.

To learn more about AMSC's product offerings for electric utilities and renewable developers, please visit: http://www.amsc.com/gridtec/index.html.

About Xiamen Red Phase Instruments Inc. (Red Phase)

Red Phase is involved in energy metering and testing, power quality detection, monitoring, substation and power system operation testing (monitoring) equipment, electrical product R & D, production and sales. For more information, please visit www.redphase.com.cn.

About AMSC (NASDAQ: AMSC)

AMSC generates the ideas, technologies and solutions that meet the world's demand for smarter, cleaner … better energy. Through its Windtec™ Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. The company's solutions are now powering gigawatts of renewable energy globally and enhancing the performance and reliability of power networks in more than a dozen countries. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information, please visit http://www.amsc.com.