Pittsburgh, PA - February 4, 2003 - Power Superconductor Applications Corporation, a leading global supplier of linear induction electric machinery and Maglev propulsion systems, today introduces its new line of Dyna-VAR high-temperature superconductor (HTS) synchronous -- condensers- high speed rotating machines that increase and enhance the transmission and distribution capacity of utility power networks.

In 1997, Power Superconductor Applications Corporation, a spin-off of the Westinghouse Electric Corporation, High Power Laboratory commenced development of an 8 MVAR superconducting synchronous condenser (SSC) for naval ship and 60 Hz utility power system VAR correction. The SSC is a compact, rotating synchronous machine operating through a step-up transformer without use of power electronic switching devices. The SSC currently under prototype testing at the PSA High Power Laboratory is an 8 MVAR, 3600 rpm unit with a 900,000 ampere-turn cryogenic rotor field and a 4,160 Volt, 3 phase stator output. This unit can be used for either direct 4,160 Volt VAR correction or in ship power systems such as for the CVN-21 aircraft carrier where the output will be stepped up to 13,800 Volts at 60 Hz. Alternately the SSC can be stepped up to 23 kV or 38 kV potential for direct use in utility distribution. This is the first turbo-generator style SSC in the world with these type of ratings. The SSC has a power density rating of 1600 kVARs /ton for the first series of 5-15 MVAR units and the second production series for 20-60 MVAR has a power density approaching 2400 kVARs/ton. These power densities significantly exceed those of static capacitor banks.

Dyna-VAR machines provide volt-ampere-reactive (VAR) power to alternating current networks to cause the voltage and current to be more nearly in phase which allows a greater amount of real power to be transmitted for a given transmission line cable size. The SSC is based on PSA's proprietary HTS generator technology developed originally for magnetic levitation (Maglev) propulsion units. The new product line of 18 unit sizes will go on sale in May 2003 in 4160 Volt and 13,800 Volt ratings. The first Dyna-VAR Synchronous Condenser will be delivered to a Pennsylvania utility in 2003 for evaluation testing at an 8 MVAR level. Installation of the first SSC will be by Bruce and Merrilees Electric Company.

Utility power systems are facing increased challenges for transmitting electric power over existing lines. The SSC development at PSA targets 72 kV and 115 kV transmission lines in the Northeast U.S. and Canada where reactive control and dynamic power factor correction are essential elements of total grid optimization. Dyna-VAR Synchronous Condensers offer a cost effective, compact and efficient solution to help power system operators maximize their transmission network.

"This quantum leap in superconducting technology is being developed from our firm's success in magnetically-levitated (Maglev) propulsion systems," explains Dr. Stephen Kuznetsov, President and CEO of Power Superconductor. "We began working with Lockheed Martin on Maglev vehicle development and in Year 2002 delivered the first set of 800 kilowatt, 120 mph linear induction propulsion motors to the Nation's first Maglev train project at Norfolk, Virginia. The SSC extends this technology to the power grid using the latest developments in superconducting wire and high magnetic fields, but in a rotating generator frame."

Power Superconductor also manufactures non-quenching current fault limiters for utility power systems in 15 kV ratings. Please see our web site www.powersuper.com for a list of HTS utility products and U.S. patents protecting these devices.

Power Superconductor Applications Corporation is a privately-held corporation. Bruce and Merrilees Electric Co. is PSA's partner for large electric utility projects and the Maglev Test Track in Lawrence County, Pennsylvania. Limited shares of stock are available for purchase by contacting Elizabeth Tarasi at Tarasi, Tarasi and Fishman, 510 Third Street Pittsburgh, PA 15219. Telephone: (412) 391-7135.