UQM Technologies Reports First Quarter Operating Results

FREDERICK, Colo.--UQM TECHNOLOGIES, INC. (NYSE Amex:UQM), a developer of alternative energy technologies, announced today operating results for the quarter ended June 30, 2009. Net loss for the first quarter declined 37 percent to $629,116, or $0.02 per common share on total revenue of $2,129,319, versus a net loss of $999,715 or $0.04 per common share on total revenue of $1,793,355 for the first quarter last year.

“During the first quarter we continued to experience strong demand for our electric propulsion systems due to an expansion in the number of all-electric and hybrid electric vehicle platforms being developed for potential introduction in the automobile market,” said William G. Rankin, UQM Technologies’ President and Chief Executive Officer. “We are currently working with 14 vehicle producers, six of which are established international automobile manufacturers and eight of which are entrepreneurial companies that plan to introduce either all-electric, hybrid-electric or plug-in hybrid-electric vehicles over the next several years. On Tuesday we announced the completion of a long-term supply agreement with one of these entrepreneurial companies, Coda Automotive, to supply 20,000 PowerPhase® 100 electric propulsion systems over a two-year period for their all-electric Coda sedan. Initial volume deliveries are expected to begin in early 2010 and our focus over the next several quarters will be on the production qualification and manufacturing launch of this product. We believe that the execution of this production program will bring the Company to a new level of improved financial performance.”

“Total revenue for the first quarter increased 19 percent versus the same quarter last year to $2,129,319 fueled by a 44 percent increase in product sales revenue which rose $526,566 to $1,716,437. The increase in total revenue together with an expansion in gross profit margins and reduced selling, general and administrative expenses more than offset increased internally-funded research and development expenditures resulting in a 37 percent reduction in net loss for the quarter to $629,116. At June 30, 2009 we had cash and short-term investments of $4,477,576 and working capital of $6,240,030. To successfully execute the supply agreement with Coda Automotive, we will likely be required to obtain additional working capital and we have today filed a “shelf” registration statement to position the Company to pursue additional capital at a future date. We believe we are well-positioned to continue to grow the Company as the restructuring of the U.S. automobile industry that is currently underway and the expected benefits of the U.S. Government’s stimulus package encourage vehicle makers and users to keep vehicle electrification a high priority,” 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 Time to discuss operating results for the quarter ended June 30, 2009. To attend the conference call, please dial 1-866-322-2356 approximately 10 minutes before the conference is scheduled to begin and provide confirmation code 4693438 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 4693438. International callers should dial 1-647-436-0148.

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 the development of markets for our products and the adequacy of our cash balances and liquidity to meet future operating needs. 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)

	June 30, 2009			March 31, 2009
Assets
Current assets:
Cash and cash equivalents	$	2,282,425		2,501,999
Short-term investments		2,195,151		3,291,667
Accounts receivable		1,782,011		917,099
Costs and estimated earnings in excess of billings on uncompleted contracts		401,966		643,098
Inventories		1,037,828		1,307,171
Prepaid expenses and other current assets		213,544		117,768
Total current assets		7,912,925		8,778,802

Property and equipment, at cost:
Land		181,580		181,580
Building		2,464,213		2,464,213
Machinery and equipment		4,067,204		4,040,406
		6,712,997		6,686,199
Less accumulated depreciation		(3,683,784	)	(3,556,796	)
Net property and equipment		3,029,213		3,129,403

Patent and trademark costs, net of accumulated amortization of $747,645 and $733,594		425,325		438,184
Other assets		84,812		76,443
Total assets	$	11,452,275		12,422,832


	June 30, 2009			March 31, 2009
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	333,769		651,129
Other current liabilities		495,898		600,672
Current portion of long-term debt		389,283		416,923
Short-term deferred compensation under executive employment agreements		402,354		397,834
Billings in excess of costs and estimated earnings on uncompleted contracts		51,591		71,367
Total current liabilities		1,672,895		2,137,925

Long-term deferred compensation under executive employment agreements		680,601		675,715
		680,601		675,715
Total liabilities		2,353,496		2,813,640

Commitments and contingencies

Stockholders’ equity:
Common stock, $.01 par value, 50,000,000 shares authorized; 26,756,932 and 26,727,694 shares issued and outstanding		267,569		267,277
Additional paid-in capital		78,885,565		78,767,154
Accumulated deficit		(70,054,355	)	(69,425,239	)
Total stockholders’ equity		9,098,779		9,609,192
Total liabilities and stockholders’ equity	$	11,452,275		12,422,832

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

	Quarter Ended June 30,
	2009			2008
Revenue:
Contract services	$	412,882		603,484
Product sales		1,716,437		1,189,871
		2,129,319		1,793,355

Operating costs and expenses:
Costs of contract services		296,505		535,660
Costs of product sales		1,228,653		1,063,435
Research and development		186,146		102,498
Production engineering		426,435		407,848
Selling, general and administrative		639,778		760,324
		2,777,517		2,869,765

Loss before other income (expense)		(648,198	)	(1,076,410	)

Other income (expense):
Interest income		15,285		84,278
Interest expense		(7,203	)	(9,116	)
Other		11,000		1,533
		19,082		76,695


Net loss	$	(629,116	)	(999,715	)

Net loss per common share - basic and diluted	$	(0.02	)	(0.04	)

Weighted average number of shares of common stock outstanding -basic and diluted		26,753,076		26,526,737

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

				Power
	Technology			Products		Total
Revenue	$	1,608,387		520,932		2,129,319
Interest income	$	14,571		714		15,285
Interest expense	$	-		(7,203	)	(7,203	)
Depreciation and amortization	$	(88,166	)	(52,873	)	(141,039	)
Impairment of inventories	$	(3,620	)	-		(3,620	)
Segment loss	$	(551,698	)	(77,418	)	(629,116	)
Total assets	$	8,170,182		3,282,093		11,452,275
Expenditures for long-lived segment assets	$	(35,985	)	-		(35,985	)

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

				Power
	Technology			Products		Total
Revenue	$	1,071,869		721,486		1,793,355
Interest income	$	82,686		1,592		84,278
Interest expense	$	-		(9,116	)	(9,116	)
Depreciation and amortization	$	(58,334	)	(55,333	)	(113,667	)
Impairment of inventories	$	(11,763	)	-		(11,763	)
Segment loss	$	(922,581	)	(77,134	)	(999,715	)
Total assets	$	12,258,070		3,722,419		15,980,489
Expenditures for long-lived segment assets	$	(220,262	)	-		(220,262	)