UQM Technologies Reports Second Quarter and First Half Operating Results

FREDERICK, Colo., Oct. 27, 2005 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today operating results for the quarter and six months ended September 30, 2005. Continuing operations for the second quarter resulted in a loss of $543,438 or $0.02 per common share on total revenue of $884,000 versus a loss from continuing operations of $378,461 or $0.02 per common share on total revenue of $1,234,477 for the second quarter last year. Net loss for the quarter was $576,708 or $0.02 per common share versus a net loss of $380,251 or $0.02 per common share for the comparable quarter last year.

Continuing operations for the six months ended September 30, 2005 resulted in a loss of $1,263,812 or $0.05 per common share on total revenue of $2,037,205 versus a loss from continuing operations of $1,076,182 or $0.06 per common share on total revenue of $1,918,473 last fiscal year. Net loss for the first half was $1,307,513 or $0.05 per common share versus a net loss last year of $1,095,154 or $0.06 per common share.

"The continued high price of fuel, the success of hybrid electric automobiles in the marketplace and mandated reductions in diesel emissions are creating an increased level of interest in our motor, generator and power electronic control system products which help improve the fuel efficiency and performance of vehicles," said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. "Many of our existing customers have shifted their focus from technology evaluation projects to production intent programs, and during the quarter, we announced a number of new contracts from both commercial and military customers who are increasingly focused on bringing electrified products to market. As a result, we are redirecting engineering resources in support our customer's production related requirements, which resulted in a decrease in contract services revenue during the quarter."

"Total revenue for the first half rose nominally versus the same period last year driven by higher sales of low volume products. Loss from continuing operations for the quarter and six months ended September 30, 2005 rose primarily due to continuing investment in our production engineering activities which totaled $172,876 and $339,566 for the second quarter and first half, respectively, and higher levels of internally-funded research and development expenditures," said Donald A. French, UQM Technologies' Treasurer and Chief Financial Officer.

The Company will host a conference call today at 4:30 p.m. Eastern Daylight Time to discuss operating results for the quarter and six months ended September 30, 2005. To attend the conference call, please dial 1-800-266-1764 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-212-676-4908. 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 Daylight Time today. To access the playback call 1-800-633-8284 and give reservation number 21265990. International callers should dial 1-402-977-9140.

UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, medical, 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 and fuel cell electric vehicles, 42-volt 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 press 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 press 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 the development of markets for our products. 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 October 27, 2005, 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, 2005  March 31, 2005
  Assets
  Current assets:
     Cash and cash equivalents               $4,109,719        5,788,232
     Short-term investments                   6,519,862        2,220,594
     Accounts receivable                        749,377          890,509
     Costs and estimated earnings in
      excess of billings on
      uncompleted contracts                     437,353          435,925
     Inventories                                546,084          648,173
     Prepaid expenses and other
      current assets                            270,373          109,198
         Total current assets                12,632,768       10,092,631

  Property and equipment, at cost:
     Land                                       181,580          181,580
     Building                                 2,295,067        2,292,687
     Machinery and equipment                  2,483,262        2,422,034
                                              4,959,909        4,896,301
     Less accumulated depreciation          (2,571,352)       (2,443,590)
         Net property and equipment           2,388,557        2,452,711

  Patent and trademark costs, net of
   accumulated amortization of $496,711
   and $450,011                                 579,675          613,448

  Other assets                                      850              850

  Total assets                              $15,601,850       13,159,640

                                        September 30, 2005  March 31, 2005

  Liabilities and Stockholders' Equity
  Current liabilities:
     Accounts payable                          $315,198          678,007
     Other current liabilities                  342,971          269,746
     Current portion of long-term debt          140,167          135,255
     Liabilities and commitments of
      discontinued operations                   113,237          154,287
     Billings in excess of costs and
      estimated earnings on uncompleted
      contracts                                 138,608           66,510
         Total current liabilities            1,050,181        1,303,805

  Long-term debt, less current portion          739,752          810,915
  Long-term liabilities and commitments
    of discontinued operations                   28,164           57,051
                                                767,916          867,966

         Total liabilities                    1,818,097        2,171,771

  Commitments and contingencies

  Stockholders' equity:
     Common stock, $.01 par value,
      50,000,000 shares authorized;
      24,628,318 and 23,177,133
      shares issued and outstanding,
      respectively                              246,283          231,771
     Additional paid-in capital              68,856,860       64,767,975
     Accumulated deficit                    (55,319,390)     (54,011,877)

         Total stockholders' equity          13,783,753       10,987,869

         Total liabilities and
          stockholders' equity              $15,601,850       13,159,640

                 UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
            Consolidated Statements of Operations (unaudited)

                                Quarter Ended         Six Months Ended
                                September 30,           September 30,
                               2005        2004        2005        2004
  Revenue:
     Contract services      $470,276     591,309     937,864   1,007,299
     Product sales           413,724     643,168   1,099,341     911,174
                             884,000   1,234,477   2,037,205   1,918,473

  Operating costs and
   expenses:
     Costs of contract
      services               471,758     582,501   1,134,314   1,164,068
     Costs of product
      sales                  327,198     550,053     930,884     784,733
     Research and
      development            103,532      43,639     133,852      95,675
     Production engineering  172,876          --     339,566          --
     General and
      administrative         418,608     436,050     867,053     935,757
     Impairment of
      long-lived assets           --          --       1,455       2,234
                           1,493,972   1,612,243   3,407,124   2,982,467

       Loss from
        continuing
        operations before
        other income
        (expense)           (609,972)   (377,766) (1,369,919) (1,063,994)

  Other income (expense):
     Interest income          81,833       8,422     137,998      16,789
     Interest expense        (15,824)    (19,117)    (32,416)    (38,977)
     Other                       525      10,000         525      10,000
                              66,534        (695)    106,107     (12,188)

       Loss from
        continuing
        operations          (543,438)   (378,461) (1,263,812) (1,076,182)

  Discontinued
   operations - loss from
   operations of
   discontinued electronic
   products segment          (33,270)     (1,790)    (43,701)    (18,972)

       Net loss            $(576,708)   (380,251) (1,307,513) (1,095,154)

       Net loss per
        common share -
        basic and
        diluted:
          Continuing
           operations         $(0.02)      (0.02)      (0.05)      (0.06)
          Discontinued
           operations             --           --          --          --
                              $(0.02)      (0.02)      (0.05)      (0.06)

  Weighted average number
   of shares of common
   stock outstanding -
   basic and diluted      24,552,704  19,574,730  23,876,669  19,574,452

The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended September 30, 2005:

                                                   Power
                                Technology       Products        Total
   Revenue                       $717,844         166,156       884,000
   Interest income                 79,395           2,438        81,833
   Interest expense                    --         (15,824)      (15,824)
   Depreciation and
    amortization                  (60,895)        (27,596)      (88,491)
   Segment loss from
    continuing operations        (508,969)        (34,469)     (543,438)
   Assets of continuing
    operations                 12,851,752       2,750,098    15,601,850
   Expenditures for
    segment assets               $(53,642)         16,138       (37,504)

Segment information below has been classified to reflect corporate overhead allocation consistent with the current year presentation. The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended September 30, 2004:

                                                   Power
                                Technology       Products       Total
   Revenue                       $828,347         406,130     1,234,477
   Interest income                  7,085           1,337         8,422
   Interest expense                  (704)        (18,413)      (19,117)
   Depreciation and
    amortization                  (60,691)        (27,878)      (88,569)
   Segment (loss) earnings
    from continuing operations   (379,084)            623      (378,461)
   Assets of continuing
    operations                  4,139,383       2,897,404     7,036,787
   Expenditures for
    segment assets               $(33,620)             --       (33,620)

The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the six months ended September 30, 2005:

                                                   Power
                               Technology        Products       Total
   Revenue                     $1,442,988         594,217     2,037,205
   Interest income                133,151           4,847       137,998
   Interest expense                    --         (32,416)      (32,416)
   Depreciation and
    amortization                 (121,169)        (56,104)     (177,273)
   Segment loss from
    continuing operations      (1,257,557)         (6,255)   (1,263,812)
   Assets of continuing
    operations                 12,851,752       2,750,098    15,601,850
   Expenditures for
    segment assets               $(70,620)        (10,181)      (80,801)

Segment information below has been classified to reflect corporate overhead allocation consistent with the current year presentation. The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the six months ended September 30, 2004:

                                                   Power
                               Technology        Products       Total
   Revenue                     $1,290,937         627,536     1,918,473
   Interest income                 14,138           2,651        16,789
   Interest expense                (1,825)        (37,152)      (38,977)
   Depreciation and
    amortization                 (124,785)        (55,842)     (180,627)
   Segment loss from
    continuing operations      (1,032,640)        (43,542)   (1,076,182)
   Assets of continuing
    operations                  4,139,383       2,897,404     7,036,787
   Expenditures for
    segment assets               $(84,117)           (747)      (84,864)