UQM Technologies Reports First Quarter Operating Results

Press Release 06-09

UQM Technologies, Inc.
7501 Miller Drive
Frederick, CO 80530

Contact:
John Baldiserra
BPC Financial Marketing
(800) 368-1217
or
Donald A. French, Treasurer
(303) 278-20

FREDERICK, COLORADO, AUGUST 3, 2005 ... UQM TECHNOLOGIES, INC. (AMEX:UQM), a developer of alternative energy technologies, announced today operating results for the quarter ended June 30, 2005. Continuing operations for the first quarter resulted in a loss of $720,374 or $0.03 per common share on total revenue of $1,153,205 versus a loss from continuing operations of $697,721 or $0.04 per common share on total revenue of $683,996 for the first quarter last year. Net loss for the quarter was $730,805 or $0.03 per common share versus a net loss of $714,903 or $0.04 per common share for the comparable quarter last year.

“Product sales for the quarter more than doubled to $685,617 from $268,006 for the first quarter last fiscal year driven by sales of higher volume products manufactured by our power products segment which nearly doubled and by higher levels of low volume products which rose over five-fold to $257,556. Our losses from continuing operations for the quarter ended June 30, 2005 were due to reduced gross profit margins on contract services and expenses associated with the expansion of our production engineering and manufacturing infrastructure, which was partially offset by lower levels of research and development expenses and general and administrative expenses,” said Donald A. French, UQM Technologies’ Treasurer and Chief Financial Officer. “On June 30, 2005 we completed a private placement of our common stock which raised our cash and short-term investments to $11.2 million and further strengthened our balance sheet which we believe is important to the execution of our strategy to make selective investments in programs and product developments that we believe could lead to volume production of our motor and controls technology in both existing and emerging markets.”

Separately, the Company announced today that it has received an order for twenty-nine DC to DC converters from Eaton Corporation’s (NYSE:ETN) Truck Components business unit for use in hybrid electric trucks.

The Company will host a conference call today at 4:30 p.m. Eastern Daylight Time to discuss operating results for the quarter ended June 30, 2005. To attend the conference call, please dial 1-888-293-1201 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-415-908-6229. 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 Daylight Time today. To access the playback call 1-800-633-8284 and give reservation number 21256610. International callers should dial 1-402-977-9140.

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 propulsion systems for electric, hybrid electric 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. 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; the adequacy of our cash balances and liquidity to meet future operating needs, and our ability to issue equity or debt securities; and the effect of legal actions and claims that we are 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 filed August 3, 2005 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, 2005		March 31, 2005
	Assets
	Current assets:
		Cash and cash equivalents							$ 8,692,548		5,788,232
		Short-term investments							2,484,004		2,220,594
		Accounts receivable							674,109		890,509
		Costs and estimated earnings in excess of billings on
					uncompleted contracts				442,732		435,925
		Inventories							481,957		648,173
		Prepaid expenses and other current assets							291,048		109,198
							Total current assets		13,066,398		10,092,631

	Property and equipment, at cost:
		Land							181,580		181,580
		Building							2,295,067		2,292,687
		Machinery and equipment							2,459,126		2,422,034
									4,935,773		4,896,301
		Less accumulated depreciation							(2,509,022 )		(2,443,590)
							Net property and equipment		2,426,751		2,452,711

	Patent and trademark costs, net of accumulated
		amortization of $473,361 and $450,011							592,468		613,448
	Other assets								850		850
						Total assets			$ 16,086,467		13,159,640

	Liabilities and Stockholders’ Equity
	Current liabilities:
		Accounts payable							$ 336,656	678,007
		Other current liabilities							367,576	269,746
		Current portion of long-term debt							137,689	135,255
		Liabilities and commitments of discontinued operations							157,581	154,287
		Billings in excess of costs and estimated
				earnings on uncompleted contracts					59,856	66,510
							Total current liabilities		1,059,358	1,303,805

	Long-term debt, less current portion								775,653	810,915
	Long-term liabilities and commitments of discontinued
		operations							57,051	57,051
									832,704	867,966

							Total liabilities		1,892,062	2,171,771

	Commitments and contingencies

	Stockholders’ equity:
			Common stock, $.01 par value, 50,000,000
					shares authorized; 24,544,194 and
					23,177,133 shares issued and outstanding				245,442	231,771
			Additional paid-in capital						68,691,645	64,767,975
			Accumulated deficit						( 54,742,682)	( 54,011,877)
							Total stockholders’ equity		14,194,405	10,987,869

							Total liabilities and stockholders’ equity		$ 16,086,467	13,159,640

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited)
								Quarter Ended June 30,
								2005		2004
	Revenue:
			Contract services						$ 467,588		415,990
			Product sales						685,617		268,006
									1,153,205		683,996

	Operating costs and expenses:
			Costs of contract services						662,556		581,567
			Costs of product sales						603,686		234,680
			Research and development						30,320		52,036
			Production engineering						166,690		-
			General and administrative						448,445		499,707
			Impairment of long-lived assets						1,455		2,234
									1,913,152		1,370,224

					Loss from continuing operations
						before other income (expense)			(759,947)		(686,228)

	Other income (expense):
			Interest income						56,165		8,367
			Interest expense						(16,592)		(19,860)
									39,573		(11,493)

					Loss from continuing operations				(720,374)		(697,721)

	Discontinued operations:
		Loss from operations of discontinued
				electronic products segment					(10,431)		(17,182)

					Net loss				$ (730,805)		(714,903 )

					Net loss per common share - basic
						and diluted:
							Continuing operations		$ (.03)		(.04)
							Discontinued operations		-		-
									$ (.03)		( .04)

	Weighted average number of shares of common
			stock outstanding - basic and diluted						23,193,205		19,574,172

The following table summarizes significant unaudited financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended June 30, 2005:
		Technology	Power Products	Total
	Revenue	$ 725,144	428,061	1,153,205
	Interest income	53,756	2,409	56,165
	Interest expense	-	(16,592)	(16,592)
	Depreciation and amortization	(60,274)	(28,508)	(88,782)
	Segment earnings (loss) from continuing operations	(748,588)	28,214	(720,374)
	Assets of continuing operations	13,208,642	2,877,825	16,086,467
	Expenditures for segment assets	$ (16,978)	(26,319)	(43,297)

The following table summarizes significant unaudited financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended June 30, 2004:
		Technology	Power Products	Total
	Revenue	$ 462,590	221,406	683,996
	Interest income	7,053	1,314	8,367
	Interest expense	(1,121)	(18,739)	(19,860)
	Depreciation and amortization	(64,094)	(27,964)	(92,058)
	Segment loss from continuing operations	(653,556)	(44,165)	(697,721)
	Assets of continuing operations	4,948,256	2,835,474	7,783,730
	Expenditures for segment assets	$ (50,497)	(747)	(51,244)

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Last Update: 08/03/05