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Unique Mobility Receives $600,000 Contract

13 September 1999

Unique Mobility Receives $600,000 Contract to Design and Build 'Dual Use' Generator System for Marine Corps' Advanced Amphibious Assault Vehicle

    GOLDEN, Colo., Sept. 13 -- UNIQUE MOBILITY, INC. (Amex: UQM),
a leading developer and manufacturer of high efficiency motor/generator
systems, announced today that it has received a $600,000 contract from the
U.S. Department of Defense under its Small Business Innovation Research
Program, to design and build a generator system for the Marine Corps' advanced
amphibious assault vehicle (AAAV).  The AAAV is being jointly developed by the
Marine Corps and General Dynamics.
    "Unique Mobility has been selected to design and build the generator
system, in part, because of our proprietary control technology, which enables
high power delivery over a wide range of engine speeds.  The proven high
efficiency of Unique Mobility's technology will also maximize the performance
of the vehicle," said William G. Rankin, President and Chief Executive
Officer.
    Mr. Rankin noted that "The technology developed as part of this program is
'dual use' and can be scaled down to smaller vehicle generators, for
applications that include the next generation 42 volt electrical system for
automobiles which are expected to be introduced in the next five years to
replace the current 12 volt system.  Combined with the ever increasing
electrical loads being incorporated into passenger cars, this technology could
prove useful to the automotive industry."
    Jon Lutz, Unique Mobility's Manager of Motor Engineering, said, "The AAAV
program represents the next step in our development of low voltage, high
current generator technology with application to the mainstream automobile
industry, among other uses.  In addition to developing hardware as part of
this program, we expect to expand our proprietary technology portfolio.  The
SBIR program allows us to retain rights to our inventions, a substantial
benefit of this effort."
    Unique Mobility, Inc. is a leading developer and manufacturer of power
dense, high efficiency motors, gear assemblies and electronic assemblies for
the automotive, aerospace, telecommunications, medical and industrial markets.
A major emphasis of the Company is in applying its systems to the emerging
electric and hybrid-electric vehicle markets.  The Company's headquarters and
engineering and product development center are located in Golden, Colorado.
Manufacturing facilities are located in Frederick, Colorado (electric motors
and gear assemblies) and St. Charles, Missouri (electronic assemblies and wire
harnesses).

    This Press Release contains 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. 333-78525) filed by the Company
with the SEC, which identifies important risk factors that could cause actual
results to differ from those contained in the forward-looking statements,
including the Company's ability to become profitable and its ability to obtain
additional financing, the Company's reliance on major customers and suppliers,
potential impacts from Year 2000 issues and the possibility that product
liability insurance may become unavailable.  These forward-looking statements
represent the Company's judgment as of the date of this Press Release.  The
Company disclaims, however, any intent or obligation to update these forward-
looking statements.