UQM Technologies Awarded Contract to Develop Generator for Marathon Engine

Natural Gas or Propane Fueled Five Kilowatt Marathon Engine Generator Aimed as Primary Energy Source for Residential Stationary Power Market

FREDERICK, Colo., Aug. 27 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) announced today that it has been awarded a contract from Marathon Engine Systems to develop a generator for their Marathon 5K natural gas or propane fueled engine. A custom designed, power dense and efficient, brushless permanent magnet UQM(R) generator will be optimally matched to meet the Marathon 5K engine's performance.

With over fifteen years of continued development, the Marathon 5K engine delivers the reliability and operating life of proven diesel technology in a small natural gas or propane fueled engine. Originally conceived by the Gas Research Institute (GRI) as the power source for a residential heat pump, the Marathon 5K engine is a prime electric power source or cogeneration (electric and heat) power source for a variety of applications including residential use where the appliance can be configured to power and heat the home, eliminating the need for a conventional furnace and water heater.

Commenting on the contract, William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc., said, "The recent and extensive power outage that rocked the Northeast was a stark reminder of our critical dependence on grid-sourced electric power and has brought a resurgence of interest in sources of reliable distributed electric power. While fuel cells may provide some potential "off in the future" solution, the Marathon 5K engine generator is a here and now product. Designed for 40,000 hours of life (the equivalent of 1.6 million miles for an automobile engine), it is quiet, efficient and uses the existing natural gas and propane fuel infrastructure. We are very pleased that Marathon Engine Systems has selected us for this development and are excited about the potential that their product has in the distributed power market and the opportunity to field UQM(R) hardware in another commercial product market."

Gary Schildt, President of Marathon Engine Systems, said, "UQM Technologies is a leader in the development of advanced motors, generators, and power electronic controllers, and we believe that their technology and manufacturing capability will bring an advantage to our products."

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 power systems for battery hybrid 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. Its electronic products manufacturing facility is located in St. Charles, Missouri. For more information on the Company, please visit its worldwide website at www.uqm.com .

Marathon Engine Systems, located in East Troy, Wisconsin, is a developer and manufacturer of primary remote electric power and cogeneration systems incorporating its Marathon 5K natural gas or propane fueled engine. Its products are marketed under the brand names, Minotaur(TM), Ecopower, PowerLast(R) XLC, and PowerLast(R) UPS. For more information on the Company, please visit its worldwide website at www.marathonengine.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 include our ability to be profitable, our ability to obtain additional financing, our reliance on major customers and suppliers, our ability to commercialize our products and the possibility that product liability insurance may become available to us.