UQM Technologies Reports Third Quarter and Nine Month Operating Results

FREDERICK, Colo. January 29, 2009: UQM TECHNOLOGIES, INC. (NYSE Alternext US: UQM, a developer of alternative energy technologies, announced today operating results for the quarter and nine months ended December 31, 2008.

“During the quarter and nine month period ended December 21, 2008 we experienced strong demand for our electric propulsion systems and related products. As a result, total revenue for the fiscal third quarter rose 68 percent to $2,873,595 versus the comparable quarter last fiscal year fueled by product sales, which nearly doubled to $2,080,982. Gross profit margin on product sales for the quarter was 33 percent contributing $683,293 to operating results versus 12 percent and $126,501 for the comparable quarter last year. Similarly, total revenue for the nine months ended December 31, 2008 increased 35 percent to $6,944,281 versus the same period last year, with contract services revenue increasing 14 percent and product sales increasing 45 percent over the comparable revenue last fiscal year. Gross profit margin on product sales for the nine month period was 24 percent contributing $1,180,405 to operating results versus 9 percent and $302,715 for the comparable nine month period last year. Primarily due to these factors, net loss for the quarter and nine month period declined by 42 percent and 8 percent to $764,101 or $0.03 per common share and $3,301,927 or $0.12 per common share, respectively,” said Donald A. French, UQM Technologies’ Treasurer and Chief Financial Officer.

“Despite the world economic slowdown, demand for our electric propulsion systems and related products has continued to be strong, driven by an expansion in the number of all-electric and hybrid electric vehicle platforms being developed for potential introduction in the passenger automobile and truck markets. In the passenger automobile market we have delivered products this year to three international automobile manufacturers, one of which has publicly announced their plan to introduce at least one all-electric or hybrid electric automobile in 2010. We are also supplying electric propulsion systems and/or generators to an additional eight entrepreneurial automobile developers, some of which have publicly announced plans to begin delivering limited quantities of automobiles to consumers in calendar 2009. In the truck market, we are delivering DC-to-DC converters to Eaton Corporation as part of their hybrid electric propulsion system which powers medium-duty hybrid trucks including International Truck and Engine Corporation’s DuraStar™ Hybrid, a diesel electric medium-duty truck, Peterbilt Motors Company’s Model 330 and Model 335 medium-duty hybrid trucks and Freightliner Trucks Business ClassŪ M2e Hybrid truck,” said William G. Rankin, UQM Technologies’ President and Chief Executive Officer. “We believe demand for our electric propulsion system products will remain strong for the foreseeable future as vehicle makers continue to focus on the development and introduction of electric and hybrid electric vehicles as part of the restructuring of the global automotive industry to provide a broader selection of highly fuel efficient vehicles to consumers.”

Operations for the third quarter resulted in a net loss of $764,101 or $0.03 per common share on total revenue of $2,873,595 versus a net loss of $1,306,996 or $0.05 per common share on total revenue of $1,714,858 for the third quarter last year.

Operations for the nine months ended December 31, 2008 resulted in a net loss of $3,301,927 or $0.12 per common share on total revenue of $6,944,281 versus a net loss of $3,575,641 or $0.14 per common share on total revenue of $5,159,901 last fiscal year

The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss operating results for the quarter and nine months ended December 31, 2008. To attend the conference call, please dial 1-866-322-2356 approximately ten minutes before the conference is scheduled to begin and provide confirmation code 9431091 to access the call. International callers should dial 1-416-640-3405. 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 1-888-203-1112 and give replay code 9431091. International callers should dial 1-647-436-0148.