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Unique Mobility, Inc. Receives $292,000 DARPA Award

8 October 1997

Unique Mobility, Inc. Receives $292,000 DARPA Award to Work With John Deere And Others on a Diesel Fuel Engine Generator for Large Hybrid-Electric Vehicles Such as Buses and People Movers

    GOLDEN, Colo. Oct. 8 -- Unique Mobility, Inc. (Amex: UQM) has
received a $292,000 award from the Defense Department to work with Deere & Co.
and others to build a state-of-the-art, diesel-fueled auxiliary power unit
(APU) for large hybrid-electric vehicles such as transit buses, shuttles and
medium duty trucks.
    To build the APU, Unique Mobility will mate its new 75 kW (100 HP)
permanent magnet motor/generator, developed in collaboration with the Defense
Advanced Research Projects Agency (DARPA), with an 88 kW (118 HP) six-cylinder
6.8 liter diesel engine manufactured by Deere & Co.  Unique will also provide
the power electronics and microprocessor controller required to run the
system.
    Hybrid-electric vehicles use a combination of electric power and
conventional fuels such as gasoline or diesel.  Hybrid vehicles don't have the
range limitations of purely electric-powered vehicles, nor do they require the
expensive infrastructure typically associated with alternative fuels such as
compressed natural gas (CNG) or liquid natural gas (LNG).  Marrying a high-
power generator with a conventional-fueled engine provides the on-board
electric power to drive the electric motor(s) that move the vehicle.
Combining this type of APU with batteries can improve miles per gallon by 50
to 100 percent.
    "Unique Mobility believes many larger electric vehicles will become
commercially viable if equipped with the range-extending ability of a hybrid.
Bus makers are aware of the limitations of the batteries in a pure electric
system and recognize the benefit of hybrid systems.  In addition to longer
range, hybrid vehicles are more fuel efficient and have lower emissions than
conventionally fueled vehicles.  Today, however, no fully integrated
commercially available high-power APUs exist for these heavy-duty
applications," said Unique president William G. Rankin.
    "Large APUs could be used for buses, shuttles and medium duty trucks.
They could also have applications on military, agricultural, construction and
other off-road vehicles.  These include crop harvesters, dirt excavators,
people and product movers and other machines where an electric transmission
will improve fuel economy, increase versatility and maneuverability.  For
military applications, the APU can provide standby electric power, eliminating
the need for the vehicle to tow or carry a separate generator."
    "A primary goal of this program is to develop a complete APU package -- an
engine, generator, controls and mounting -- that can be provided to vehicle
manufacturers interested in producing hybrid electric drive vehicles.  The use
of diesel as the fuel of choice in the APU allows the vehicle manufacturer to
use existing fuel storage and delivery systems which eliminate the need for
additional or special fueling facilities," says Program Manager Alan Gilbert.
For this program, Unique will have cooperative assistance from Deere & Co. and
others.
    In a typical diesel or gasoline powered engine, power is transmitted to
the wheels mechanically through a transmission, drive shaft and differential.
In a hybrid vehicle, however, mechanical energy from the engine can be
converted into electric power by a generator and that electricity is
transmitted via wires to electric traction motor(s) that drive two or more of
the vehicle's wheels.  Also in this type of hybrid system, the generator acts
as the starter motor for the engine, eliminating the need for a separate
starter motor.
    Funding for the project, awarded through the Southern Coalition for
Advanced Transportation (SCAT), comes from DARPA, the Defense Advanced
Research Projects Agency, which helped fund early research and development of
the Internet.  The project is a part of DARPA's dual use electric and hybrid
vehicle technology program -- a 50/50 industry-government partnership
developing advanced transportation solutions for priority military and
commercial uses.  SCAT, an Atlanta-based consortium of over 50 companies,
universities and government labs, focuses on the cooperative development of
electric and hybrid vehicles.  To date, cooperative research and demonstration
projects awarded through SCAT have totaled almost $5 million.
    "We are excited about the prospects for this APU, because the project adds
Unique's experience with permanent magnet motors to Deere's leadership in
diesel engines," said SCAT president and CEO John Wilson.  "Given Deere's
market position in agricultural and construction equipment, this APU will be
borne with a firm focus on market needs -- a key consideration for long-term
success."
    Unique Mobility is one of the world's leading developers of power systems
for electric and hybrid electric vehicles.  It is a Golden, Colorado, based
engineering concern and manufacturer of high efficiency permanent magnet
motors and controls for automotive, aerospace and industrial applications.
For more information on the Company please visit our world wide web site at
 http://www.uqm.com.
    This release contains forward-looking statements that involve risks and
uncertainties.  The Company's actual results could differ materially from
those discussed in this release.  Factors that could cause or contribute to
such differences include, but are not limited to, those discussed in the
Company's Registration Statement on Form S-3 (file no. 23843).  These forward-
looking statements represent the Company's judgment as of the date of this
release.  The Company disclaims, however, any intent or obligation to update
these forward-looking statements.

SOURCE  Unique Mobility, Inc.