UQM Technologies Reports Second Quarter and First Half Operating Results

Press Release 06-19

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, OCTOBER 27, 2005… UQM TECHNOLOGIES, INC. (AMEX: UQM), a developer of alternative energy technologies, announced today operating results for the quarter and six months ended September 30, 2005. Continuing operations for the second quarter resulted in a loss of $543,438 or $0.02 per common share on total revenue of $884,000 versus a loss from continuing operations of $378,461 or $0.02 per common share on total revenue of $1,234,477 for the second quarter last year. Net loss for the quarter was $576,708 or $0.02 per common share versus a net loss of $380,251 or $0.02 per common share for the comparable quarter last year.

Continuing operations for the six months ended September 30, 2005 resulted in a loss of $1,263,812 or $0.05 per common share on total revenue of $2,037,205 versus a loss from continuing operations of $1,076,182 or $0.06 per common share on total revenue of $1,918,473 last fiscal year. Net loss for the first half was $1,307,513 or $0.05 per common share versus a net loss last year of $1,095,154 or $0.06 per common share.

“The continued high price of fuel, the success of hybrid electric automobiles in the marketplace and mandated reductions in diesel emissions are creating an increased level of interest in our motor, generator and power electronic control system products which help improve the fuel efficiency and performance of vehicles,” said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. “Many of our existing customers have shifted their focus from technology evaluation projects to production intent programs, and during the quarter, we announced a number of new contracts from both commercial and military customers who are increasingly focused on bringing electrified products to market. As a result, we are redirecting engineering resources in support our customer’s production related requirements, which resulted in a decrease in contract services revenue during the quarter.”

“Total revenue for the first half rose nominally versus the same period last year driven by higher sales of low volume products. Loss from continuing operations for the quarter and six months ended September 30, 2005 rose primarily due to continuing investment in our production engineering activities which totaled $172,876 and $339,566 for the second quarter and first half, respectively, and higher levels of internally-funded research and development expenditures,” 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 Daylight Time to discuss operating results for the quarter and six months ended September 30, 2005. To attend the conference call, please dial 1-800-266-1764 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-212-676-4908. 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 21265990. 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.

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets (unaudited)
								September 30, 2005			March 31, 2005
	Assets
	Current assets:
		Cash and cash equivalents								$ 4,109,719			5,788,232
		Short-term investments								6,519,862			2,220,594
		Accounts receivable								749,377			890,509
		Costs and estimated earnings in excess of billings on
					uncompleted contracts					437,353			435,925
		Inventories								546,084			648,173
		Prepaid expenses and other current assets								270,373			109,198
							Total current assets			12,632,768			10,092,631

	Property and equipment, at cost:
		Land								181,580			181,580
		Building								2,295,067			2,292,687
		Machinery and equipment								2,483,262			2,422,034
										4,959,909			4,896,301
		Less accumulated depreciation								(2,571,352 )			(2,443,590)
							Net property and equipment			2,388,557			2,452,711

	Patent and trademark costs, net of accumulated
		amortization of $496,711 and $450,011								579,675			613,448

	Other assets									850			850

						Total assets				$ 15,601,850			13,159,640

								September 30, 2005				March 31, 2005
	Liabilities and Stockholders’ Equity
	Current liabilities:
		Accounts payable							$ 315,198					678,007
		Other current liabilities							342,971					269,746
		Current portion of long-term debt							140,167					135,255
		Liabilities and commitments of discontinued
				operations					113,237					154,287
		Billings in excess of costs and estimated
				earnings on uncompleted contracts					138,608					66,510
							Total current liabilities		1,050,181					1,303,805

	Long-term debt, less current portion								739,752					810,915
	Long-term liabilities and commitments of discontinued
		operations							28,164					57,051
									767,916					867,966

							Total liabilities		1,818,097					2,171,771

	Commitments and contingencies

	Stockholders’ equity:
			Common stock, $.01 par value, 50,000,000
					shares authorized; 24,628,318 and 23,177,133
					shares issued and outstanding, respectively				246,283					231,771
			Additional paid-in capital						68,856,860					64,767,975
			Accumulated deficit						( 55,319,390)					( 54,011,877)

							Total stockholders’ equity		13,783,753					10,987,869

							Total liabilities and stockholders’ equity		$ 15,601,850					13,159,640

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited)
						Quarter Ended September 30,		Six Months Ended September 30,
						2005	2004	2005	2004
Revenue:
		Contract services				$ 470,276	591,309	937,864	1,007,299
		Product sales				413,724	643,168	1,099,341	911,174
						884,000	1,234,477	2,037,205	1,918,473

Operating costs and expenses:
		Costs of contract services				471,758	582,501	1,134,314	1,164,068
		Costs of product sales				327,198	550,053	930,884	784,733
		Research and development				103,532	43,639	133,852	95,675
		Production engineering				172,876	-	339,566	-
		General and administrative				418,608	436,050	867,053	935,757
		Impairment of long-lived assets				-	-	1,455	2,234
						1,493,972	1,612,243	3,407,124	2,982,467

			Loss from continuing operations
				before other income (expense)		(609,972)	(377,766)	(1,369,919)	(1,063,994)

Other income (expense):
		Interest income				81,833	8,422	137,998	16,789
		Interest expense				(15,824)	(19,117)	(32,416)	(38,977)
		Other				525	10,000	525	10,000
						66,534	(695)	106,107	(12,188)

			Loss from continuing operations			(543,438)	(378,461)	(1,263,812)	(1,076,182)

Discontinued operations – loss from operations
	of discontinued electronic products segment					(33,270)	(1,790)	(43,701)	(18,972)

			Net loss			$ (576,708)	(380,251)	(1,307,513)	(1,095,154)

			Net loss per common share - basic
				and diluted:
					Continuing operations	$ (0.02)	(0.02)	(0.05)	(0.06)
					Discontinued operations	-	-	-	-
						$ ( 0.02)	( 0.02)	( 0.05)	( 0.06)

Weighted average number of shares of common
	stock outstanding - basic and diluted					24,552,704	19,574,730	23,876,669	19,574,452

The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended September 30, 2005:
			Power
		Technology	Products	Total
	Revenue	$ 717,844	166,156		884,000
	Interest income	79,395	2,438		81,833
	Interest expense	-	(15,824)		(15,824)
	Depreciation and amortization	(60,895)	(27,596)		(88,491)
	Segment loss from continuing operations	(508,969)	(34,469)		(543,438)
	Assets of continuing operations	12,851,752	2,750,098		15,601,850
	Expenditures for segment assets	$ (53,642)	16,138		(37,504)

Segment information below has been classified to reflect corporate overhead allocation consistent with the current year presentation. The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended September 30, 2004:
			Power
		Technology	Products	Total
	Revenue	$ 828,347	406,130	1,234,477
	Interest income	7,085	1,337	8,422
	Interest expense	(704)	(18,413)	(19,117)
	Depreciation and amortization	(60,691)	(27,878)	(88,569)
	Segment (loss) earnings from continuing operations	(379,084)	623	(378,461)
	Assets of continuing operations	4,139,383	2,897,404	7,036,787
	Expenditures for segment assets	$ (33,620)	-	(33,620)

The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the six months ended September 30, 2005:
			Power
		Technology	Products	Total
	Revenue	$ 1,442,988	594,217		2,037,205
	Interest income	133,151	4,847		137,998
	Interest expense	-	(32,416)		(32,416)
	Depreciation and amortization	(121,169)	(56,104)		(177,273)
	Segment loss from continuing operations	(1,257,557)	(6,255)		(1,263,812)
	Assets of continuing operations	12,851,752	2,750,098		15,601,850
	Expenditures for segment assets	$ (70,620)	(10,181)		(80,801)

Segment information below has been classified to reflect corporate overhead allocation consistent with the current year presentation. The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the six months ended September 30, 2004:
			Power
		Technology	Products	Total
	Revenue	$ 1,290,937	627,536	1,918,473
	Interest income	14,138	2,651	16,789
	Interest expense	(1,825)	(37,152)	(38,977)
	Depreciation and amortization	(124,785)	(55,842)	(180,627)
	Segment loss from continuing operations	(1,032,640)	(43,542)	(1,076,182)
	Assets of continuing operations	4,139,383	2,897,404	7,036,787
	Expenditures for segment assets	$ (84,117)	(747)	(84,864)

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 October 27, 2005 which is available through our website at www.uqm.com or at www.sec.gov.

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Last Update: 10/27/05