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Unique Mobility Receives Contract to Develop Electric Traction System

7 July 1999

Unique Mobility Receives Contract to Develop High Performance Integrated Electric Traction System

        DOE Award Directed Toward Emerging Market for Hybrid-Electric
                       And Fuel Cell-Electric Vehicles

    GOLDEN, Colo., July 7 -- Unique Mobility, Inc. (Amex: UQM)
announced today that it has received a U.S. Department of Energy grant award
to design and build an advanced electric traction system capable of propelling
mid-sized hybrid-electric and fuel cell-electric passenger vehicles.  Two
Detroit automakers have indicated high interest in the project and have agreed
to evaluate early prototypes.
    The two-year engineering project is valued at $750,000 and follows an
earlier DOE funded effort by Unique that validated the preliminary system
design.  The current effort will focus on manufacturability and cost analysis.
    According to Jon Lutz, Manager of Unique's Motor Engineering Department,
"the system incorporates an innovative combination of an energy efficient
electric motor, gears and differential.  By using Unique's patented phase
advance technology, the system will produce both high starting torque and
higher speeds (i.e. power) without increasing the size and cost of the
motor/controller package."
    "The size of the complete system is smaller than a 12 inch cube," said
Lutz, "yet it can deliver as much as 100 horsepower and 1,100 ft-lbs. of
torque to the wheels -- more than enough to put sports car zing into a
mid-size sedan."  We are not aware of another product in the market that can
come close to this power density and packagability."
    "This effort will add another product to our arsenal of electric
propulsion systems," said Ray A. Geddes, Chairman and Chief Executive Officer.
"It combines our technical expertise and manufacturing know-how in the field
of high-efficiency, power dense permanent magnet motors and gear assemblies to
arrive at a compact, cost-effective traction drive system for the automotive
industry."
    Unique Mobility, Inc., is a leading developer and manufacturer of power
dense, high efficiency motors, gear assemblies and electronic and wire harness
assemblies for the aerospace, telecommunications, automotive, medical and
industrial markets.  The company is headquartered in Golden, Colorado, with
manufacturing facilities in Frederick, Colorado (electric motors and precision
gears) and St. Charles, Missouri (electronic assemblies and wire harnesses).

    This release may contain forward-looking statements that involve risks and
uncertainties.  These statements may differ materially from actual future
events or results.  Readers are referred to the Risk Factors section of the
Registration Statement on Form S-3 (File No. 333-67313) filed by Unique with
the SEC, which identifies important risk factors that could cause actual
results to differ from those contained in the forward-looking statements,
including Unique's history of operating losses, its ability to obtain
additional financing, competition, the Company's ability to integrate acquired
businesses into existing operations, Unique's ability to protect its
proprietary information, Year 2000 issues and Unique's limited experience in
manufacturing processes and procedures and marketing and distribution.