UQM Technologies Announces Orders From International Tier I Automotive Suppliers for Hybrid Electric Propulsion Systems

UQM(R) Propulsion Systems to be Used in Both Series and Parallel Hybrid Vehicles

FREDERICK, Colo., Jan. 29 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today that two international tier I automotive suppliers have ordered UQM(R) permanent magnet propulsion systems for use in hybrid electric vehicles under development. The applications of the UQM(R) systems include both series hybrid and parallel hybrid configurations. The series hybrid configuration incorporates a UQM(R) generator driven by an internal combustion engine to provide on-board electric power and a UQM(R) propulsion system which provides primary propulsion and serves as a regenerative braking system to slow the vehicle and recharge the battery pack. The parallel hybrid configuration incorporates a UQM(R) propulsion system in the driveline to join the internal combustion engine in propelling the vehicle as well as providing regenerative braking to slow the vehicle and recharge the battery pack.

Commenting on the orders, William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc., said, "We are pleased that these international automotive suppliers have selected UQM(R) propulsion systems for use in their hybrid electric vehicle development activities. The ability of our propulsion systems to deliver high torque and power in a compact and energy efficient package, together with proven durability in demanding automotive environments, are key attributes driving these customers' interest in our technology. We believe that the marketplace is now beginning to embrace hybrid electric vehicles, not only as an environmentally friendly path to lower our country's dependence on foreign oil, but also as an enabler of high performance vehicles that consumers are excited to drive and own. As this market acceptance accelerates, we expect to see growing interest in our power systems from vehicle manufacturers and their drivetrain suppliers worldwide."

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.

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; the charge to earnings that will result from the sale or closure of the Company's contract electronics manufacturing business during the quarter ending March 31, 2004; the adequacy of the Company's cash balances and liquidity to meet future operating needs, and the ability of the Company to issue equity or debt securities; the expected amount of future losses from continuing operations; and the effect of legal actions and claims that the Company is involved in. 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 for the quarter ended December 31, 2003 and is available through our website at uqm.com or at sec.gov.