UQM Technologies Reports Second Quarter Operating Results

FREDERICK, Colo. - (BUSINESS WIRE) - 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.

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets (unaudited)
		September 30, 2009				March 31, 2009
Assets
Current assets:
Cash and cash equivalents		$	3,555,700			2,501,999
Short-term investments			1,746,472			3,291,667
Accounts receivable			1,667,969			917,099
Costs and estimated earnings in excess of billings on uncompleted contracts			337,337			643,098
Inventories			1,009,884			1,307,171
Prepaid expenses and other current assets			300,833			117,768
Total current assets			8,618,195			8,778,802
Property and equipment, at cost:
Land			181,580			181,580
Building			2,464,213			2,464,213
Machinery and equipment			4,146,721			4,040,406
			6,792,514			6,686,199
Less accumulated depreciation			(3,808,451	)		(3,556,796	)
Net property and equipment			2,984,063			3,129,403
Patent and trademark costs, net of accumulated amortization of $761,602 and $733,594			418,032			438,184
Other assets			120,194			76,443
Total assets		$	12,140,484			12,422,832
		September 30, 2009				March 31, 2009
Current liabilities:
Accounts payable		$	450,718			651,129
Other current liabilities			580,493			600,672
Current portion of long-term debt			361,143			416,923
Short-term deferred compensation under executive employment agreements			406,875			397,834
Billings in excess of costs and estimated earnings on uncompleted contracts			106,727			71,367
Total current liabilities			1,905,956			2,137,925
Long-term deferred compensation under executive employment agreements			685,487			675,715
Total liabilities			2,591,443			2,813,640
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value, 50,000,000 shares authorized; 27,156,477 and 26,727,694 shares issued and outstanding			271,565			267,277
Additional paid-in capital			79,827,868			78,767,154
Accumulated deficit			(70,550,392	)		(69,425,239	)
Total stockholders' equity			9,549,041			9,609,192
Total liabilities and stockholders' equity		$	12,140,484			12,422,832

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited)
		Quarter Ended September 30,							Six Months Ended September 30,
		2009				2008			2009			2008
Revenue:
Contract services		$	431,512			586,384			844,394			1,189,868
Product sales			1,839,030			1,690,947			3,555,467			2,880,818
			2,270,542			2,277,331			4,399,861			4,070,686
Operating costs and expenses:
Costs of contract services			285,215			541,946			581,720			1,077,606
Costs of product sales			1,167,511			1,320,271			2,396,164			2,383,706
Research and development			127,689			149,847			313,835			252,345
Production engineering			587,881			485,369			1,014,316			893,217
Selling, general and administrative			603,069			1,269,403			1,242,847			2,029,727
			2,771,365			3,766,836			5,548,882			6,636,601
Operating loss			(500,823	)		(1,489,505	)		(1,149,021	)		(2,565,915	)
Other income (expense):
Interest income			11,487			49,322			26,772			133,600
Interest expense			(6,701	)		(8,559	)		(13,904	)		(17,675	)
Impairment of investment			-			(89,369	)		-			(89,369	)
Other			-			-			11,000			1,533
			4,786			(48,606	)		23,868			28,089
Net loss		$	(496,037	)		(1,538,111	)		(1,125,153	)		(2,537,826	)
Net loss per common share - basic and diluted		$	(0.02	)		(0.06	)		(0.04	)		(0.10	)
Weighted average number of shares of common stock outstanding - basic and diluted			26,947,997			26,639,508			26,851,069			26,583,430
See accompanying notes to consolidated financial statements.

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

							Power
			Technology				Products			Total
	Revenue		$	1,760,826			509,716			2,270,542
	Interest income		$	10,613			874			11,487
	Interest expense		$	-			(6,701	)		(6,701	)
	Depreciation and amortization		$	(92,724	)		(52,873	)		(145,597	)
	Segment loss		$	(480,112	)		(15,925	)		(496,037	)
	Total assets		$	8,725,308			3,415,176			12,140,484
	Expenditures for long-lived segment assets		$	(105,600	)		(22,507	)		(128,107	)

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

							Power
			Technology				Products			Total
	Revenue		$	1,441,848			835,483			2,277,331
	Interest income		$	48,407			915			49,322
	Interest expense		$	-			(8,559	)		(8,559	)
	Depreciation and amortization		$	(70,141	)		(55,459	)		(125,600	)
	Impairment of investment		$	(89,369	)		-			(89,369	)
	Segment loss		$	(1,392,600	)		(145,511	)		(1,538,111	)
	Total assets		$	10,977,344			3,601,637			14,578,981
	Expenditures for long-lived segment assets		$	(141,234	)		(7,110	)		(148,344	)

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:

							Power
			Technology				Products			Total
	Revenue		$	3,369,213			1,030,648			4,399,861
	Interest income		$	25,184			1,588			26,772
	Interest expense		$	-			(13,904	)		(13,904	)
	Depreciation and amortization		$	(180,890	)		(105,746	)		(286,636	)
	Impairment of inventories		$	(3,620	)		-			(3,620	)
	Segment loss		$	(1,031,810	)		(93,343	)		(1,125,153	)
	Total assets		$	8,725,308			3,415,176			12,140,484
	Expenditures for long-lived segment assets		$	141,585			22,507			164,092

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:

							Power
			Technology				Products			Total
	Revenue		$	2,509,785			1,560,901			4,070,686
	Interest income		$	131,093			2,507			133,600
	Interest expense		$	-			(17,675	)		(17,675	)
	Depreciation and amortization		$	(128,475	)		(110,792	)		(239,267	)
	Impairment of inventories		$	-			(11,763	)		(11,763	)
	Impairment of investment		$	(89,369	)		-			(89,369	)
	Segment loss		$	(2,315,181	)		(222,645	)		(2,537,826	)
	Total assets		$	10,977,344			3,601,637			14,578,981
	Expenditures for long-lived segment assets		$	(361,496	)		(7,110	)		(368,606	)

BPC Financial Marketing
John Baldiserra, 800-368-1217
or
UQM Technologies, Inc.
Donald A. French, 303-682-4900