Delay Reported in Detroit HTS Cable Demonstration Project
HTS Wires Perform as Required - Further Testing Needed of Cables' Thermal Insulation System
DETROIT--(BUSINESS WIRE)--Jan. 16, 2002--American Superconductor Corporation (Nasdaq: AMSC - news), a leading global supplier of superconductor products and power electronic converters for the electric power industry, today reported that Pirelli Energy Cables and Systems has delayed the demonstration of the three high temperature superconductor (HTS) cables Pirelli had installed last summer in a Detroit Edison substation. The delay is due to a vacuum system problem. Tests of sections of the installed cables have shown that the HTS wires used in these cables met all performance requirements for rigorous field installations.
In an advisory issued today, Pirelli indicated that the cable cryostats, which use a vacuum to limit the amount of heat entering each cable, are able to achieve only partial vacuum. Pirelli says more extensive testing of the cable system components is needed to determine what is keeping the cables from achieving full vacuum and to determine the steps and timeframe needed to correct the problem. Pirelli anticipates issuing a timetable for commissioning of the cable system in the second quarter of 2002.
``While we are disappointed with this delay in the cable demonstration project, we are pleased that our HTS wires met all performance specifications,'' said Greg Yurek, chief executive officer of American Superconductor. ``Cryogenic piping installations that utilize vacuum thermal insulation have been in operation around the world for many years and we believe the vacuum problem in Detroit will not hinder future HTS cable installations. The demand to move larger and larger quantities of power through the grid continues to grow and we believe HTS power cables will play a significant role in meeting this demand.''
The Detroit Edison Frisbie substation is the site of the first installation and demonstration of an underground HTS cable in a U.S. utility network. Three 400-foot cables were installed inside 4-inch-diameter underground ducts during the summer of 2001. All other cable components, including the cryogenic system, were completed in the fall of 2001. For background information on this demonstration project see detroitedison.com or amsuper.com.
American Superconductor will host a teleconference call and Webcast at 08:00 am eastern time on Thursday, January 17, 2002, to discuss Pirelli's report. The dial-in number for the teleconference is 212-346-0202 and the reservation number is 20256318. To listen to the conference call via the Webcast please follow the link found on the home page of the company's Website. An audio replay of the teleconference will be available beginning Thursday, January 17 at 10:00 am eastern time and ending Thursday, January 24 at 10:00 am eastern time. To access the audio replay please dial 858-812-6440, reservation number 20256318.
About American Superconductor
American Superconductor Corporation is a world leader 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 dramatically increase the bandwidth and reliability of power delivery girds, 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 amsuper.com.
Certain statements in this release, 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. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include the uncertainties that: the company will be able to obtain the anticipated funding from corporate and government contracts; the company will be able to successfully develop and manufacture commercial products; a robust market will develop for the company's products; and the company will secure anticipated orders. Additionally such factors include: 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; the amount and timing of the company's future cash requirements and the availability of satisfactory financing sources. 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 periodic reports filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's estimates as of January 16, 2002. While the Company anticipates that subsequent events and developments may cause the Company's estimates to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's estimates or views as of any date subsequent to January 16, 2002.
--------------------------------------------------------------------------------
Contact:
American Superconductor
Jeff Nestel-Patt, 508-621-4375
jnestel-patt@amsuper.com
or
American Superconductor
Jack Jackson, 781-444-1020
jack@on-message.com
or
American Superconductor
Stan Piekos, 508-621-4220
spiekos@amsuper.com |
