WESTBOROUGH, Mass., Nov. 1, 2002 — American Superconductor Corp., a developer and manufacturer of superconductor and power electronic based products for the electric power industry, announced that it has acquired all of the assets of Nordic Superconductor Technologies A/S (NST), a subsidiary of Denmark’s NKT Holding A/S.
NST has developed and marketed high temperature superconductor (HTS) wire to customers in Europe, Asia and North America.
AMSC is acquiring substantially all of the assets of NST including patents, manufacturing equipment, stock materials, work-in-process, and know how. NST’s wire manufacturing in Denmark will be shut down and the purchased assets will be incorporated into AMSC’s operations. NKT Holding will be responsible for the transition of NST’s employees affected by the acquisition.
AMSC will not assume any debt or other liabilities of NST. NKT and AMSC will work together during a transition period to address the needs of NST’s current customers to fulfill the existing order backlog and to support new projects already under discussion. Juan Farre, current CEO of NST, will work as a consultant to AMSC to help in the transfer of technology know how and of customer relationships and market information.
Under terms of the agreement NKT will receive 546,000 shares of AMSC Common Stock valued at +ACQ-2.1 million based on the closing price of AMSC’s stock on Nasdaq on October 31, 2002. NKT has agreed to hold those shares for at least two years.
+ACI-This acquisition of NST provides us with some very important assets and the opportunity to expand our customer base,+ACI- said Greg Yurek, chief executive officer of American Superconductor. +ACI-NKT, through its NKT Cables business unit, has successfully demonstrated HTS cables in the grid in Denmark. American Superconductor is well positioned to meet the needs of NKT for future HTS demonstration and commercial cable projects. We are also very well positioned to meet the needs of all of NST’s other customers for HTS wire and we look forward to working with them to serve their needs.+ACI-
+ACI-American Superconductor has worldwide leadership in the development and manufacture of HTS wire,+ACI- said Tom Knutzen, president and CEO of NKT Holding and Chairman of NST. +ACI-Our sale of the assets of NST to American Superconductor is the right strategic move for us at this time. Our focus on the HTS market will be through NKT Cables, which will build on its successful demonstration of an HTS cable system in the grid in Denmark and through its collaboration with Southwire in the U.S.+ACI-
Knutzen added that he expects a close cooperation will be established between NKT Cables and American Superconductor. +ACI-We foresee a significant long term market opportunity for HTS cables,+ACI- said Knutzen.
+ACI-We believe that transferring our investment in HTS wire into AMSC and focusing on the commercialization of HTS cables using AMSC wire will provide the best platform moving forward.+ACI-
In the mid-1990’s NKT and Southwire Company, a leading U.S. cable manufacturer, began working together on HTS power cable technology, a cooperation that continues today. In February 2000, a 30-meter HTS cable made with NST wire began carrying power to three Southwire manufacturing facilities in Carrollton, GA. That HTS cable system is still in operation. In May 2001, NKT Cables installed the world’s first HTS power cable in the power grid in Denmark and it has been operating successfully.
Since February 2002, when AMSC announced it was restructuring its relationship with Pirelli Cables and Systems, AMSC has been working closely with many leading cable manufacturers to incorporate AMSC wire in HTS cable demonstration and commercial projects. +ACI-The new, open access to AMSC wire has created significant opportunities for AMSC and for cable manufacturers who want to incorporate our highest performance, best priced wire in their new cable products,+ACI- said Yurek.
+ACI-Access to our wire and the growing realization that low-impedance HTS cables can provide tremendous power network upgrades at competitive costs is creating new market opportunities for HTS technology.+ACI-
NKT Holding – founded in 1891 and listed on the Copenhagen Stock Exchange — is the parent company for an industrial group of companies employing some 5,500 people, 25+ACU- in Denmark and 75+ACU- internationally, mainly in Europe and the United States. The Group had a turnover of US+ACQ-800 million in 2001. For further information, visit http://www.nkt.dk.
About American Superconductor
American Superconductor Corporation is a specialist in developing and manufacturing products using superconductor wires and power electronic converters for the electric power infrastructure. American Superconductor’s products, and those sold by electrical equipment manufacturers that incorporate its products, can increase the bandwidth and reliability of power delivery grids, reduce manufacturing and operating costs, and conserve resources used to produce electric power. Founded in 1987, the company is headquartered in Westborough, Mass. For more information, visit http://www.amsuper.com.