UQM Technologies Reports Second Quarter Operating Results

FREDERICK, Colo. — UQM TECHNOLOGIES, INC. (NYSE Amex: UQM), a developer of alternative energy technologies, announced today operating results for the quarter and six month period ended September 30, 2009.

Operations for the second quarter resulted in a net loss of $496,037 or $0.02 per common share on total revenue of $2,270,542 versus a net loss of $1,538,111 or $0.06 per common share on total revenue of $2,277,331 for the second quarter last fiscal year.

Operations for the six month period ended September 30, 2009 resulted in a net loss of $1,125,153 or $0.04 per common share on total revenue of $4,399,861 versus a net loss of $2,537,826 or $0.10 per common share on total revenue of $4,070,686 for the comparable period last year.

“Net loss for the quarter and six month period ended September 30, 2009 declined substantially due to the expansion of gross profit margins to 36 percent and 32 percent, respectively, versus 18 percent and 15 percent for the comparable periods last fiscal year and the deferral of annual compensation awards which resulted in lower selling general and administrative costs. Gross margin contribution dollars nearly doubled to $817,816 for the quarter and rose 133 percent to $1,421,977 for the six month period versus $415,114 and $609,374 for the same periods last fiscal year, respectively. The expansion in gross profit margins resulted, in part, from increased product sales which rose 9 percent and 23 percent for the quarter and six month period, respectively, improved overhead absorption and lower production costs generally. Production engineering expenses for the quarter increased 21 percent to $587,881 reflecting the application of additional resources to the production launch of a PowerPhase® electric propulsion system for Coda Automotive’s five passenger all-electric passenger automobile scheduled for introduction in the California market in mid-2010,” said Donald A. French, UQM Technologies’ Treasurer and Chief Financial Officer. “In addition, last week we closed on a public offering of 8.625 million shares of common stock resulting in net proceeds to the Company of approximately $32 million, raising our cash and short-term investments to approximately $37 million. These additional funds will be used for facilities, tooling and equipment expenditures and working capital requirements associated with the launch of volume manufacturing operations for Coda Automotive.

“During the second fiscal quarter there were several significant events that have greatly increased the Company’s position as a key supplier of electric propulsion motors and generators to the automotive, truck, bus, off-road vehicle and military markets including:

• the completion of a ten-year supply agreement with Coda Automotive to supply a 100kW electric propulsion system for their all-electric passenger sedan expected to be introduced in the California market in mid-2010. Coda hopes to achieve an annual sales run rate of 20,000 vehicles by December 2010, which if achieved, will result in annual revenue to our Company substantially greater than $50 million.
• an award of $45.1 million from the U.S. Department of Energy under the American Recovery and Reinvestment Act of 2009 under its component manufacturing initiative for electric drive vehicles. Funding under this program is available to match qualifying expenditures for facilities, tooling and manufacturing equipment and engineering activities related to product qualification and testing
• a marketing collaboration with BorgWarner to jointly market our electric motors and generators with BorgWarner's gearbox to automotive companies worldwide

These developments together with our recently completed round of financing have positioned us to broaden our reach in each of the markets we serve. To this point, during the second quarter we received low volume orders from twenty-one customers for our products. These low volume evaluation units represent the first step in the sales process leading to the inclusion of our propulsion systems and generators into new vehicle development programs,” said William G. Rankin, UQM Technologies' President and Chief Executive Officer.

The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss operating results for the quarter and six months ended September 30, 2009. To attend the conference call, please dial 1-866-212-4491 approximately ten minutes before the conference is scheduled to begin and provide the description “UQM Second Quarter Earnings Call” to access the call. International callers should dial 1-416-800-1066. For anyone who is unable to participate in the conference, a recording will be available for 48 hours beginning at 6:30 p.m. Eastern Time today. To access the playback call 1-866-583-1035 and enter replay code “1094472#.” International callers should dial 011-44-208-196-1998.

UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, military and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including propulsion systems for electric, hybrid electric, plug-in hybrid electric and fuel cell electric vehicles, under-the-hood power accessories and other vehicle auxiliaries and distributed power generation applications. The Company's headquarters, engineering and product development center, and motor manufacturing operation are located in Frederick, Colorado. For more information on the Company, please visit its worldwide website at www.uqm.com.

This Release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements appear in a number of places in this Release and include statements regarding our plans, beliefs or current expectations, including those plans, beliefs and expectations of our officers and directors with respect to, among other things, orders to be received under our supply agreement with Coda, our ability to comply with the necessary conditions to access the Department of Energy award, our ability to successfully expand our manufacturing facilities and the continued growth of the electric-powered vehicle industry. Important Risk Factors that could cause actual results to differ from those contained in the forward-looking statements are contained in our Form 10-Q filed today, which is available through our website at www.uqm.com or at www.sec.gov.

The following table summarizes significant financial statement information of each of the reportable segments as of and for the quarter ended September 30, 2009:

The following table summarizes significant financial statement information of each of the reportable segments as of and for the quarter ended September 30, 2008:

The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the six month period ended September 30, 2009:

The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the six month period ended September 30, 2008: