UQM Technologies Reports Third Quarter and Nine Month Operating Results

Press Release 06-23

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, JANUARY 26, 2006… UQM TECHNOLOGIES, INC. (AMEX: UQM), a developer of alternative energy technologies, announced today operating results for the quarter and nine months ended December 31, 2005. Continuing operations for the third quarter resulted in a loss of $536,106 or $0.02 per common share on total revenue of $1,144,156 versus a loss from continuing operations of $367,172 or $0.02 per common share on total revenue of $1,307,583 for the third quarter last year. Net loss for the quarter was $518,064 or $0.02 per common share versus a net loss of $392,980 or $0.02 per common share for the comparable quarter last year.

Continuing operations for the nine months ended December 31, 2005 resulted in a loss of $1,799,918 or $0.08 per common share on total revenue of $3,181,361 versus a loss from continuing operations of $1,443,354 or $0.07 per common share on total revenue of $3,226,056 last fiscal year. Net loss for the nine months was $1,825,577 or $0.08 per common share versus a net loss for the nine month period last year of $1,488,134 or $0.07 per common share.

“Operating results for the quarter and nine months ended December 31, 2005 reflect the impact of additional investment in establishing a production engineering group. Production engineering expenditures rose to $224,792 and $564,358 for the quarter and nine months versus $93,479 for each comparable period last fiscal year,” said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. “This investment is beginning to bear fruit, evidenced by an initial order for 10,000 motors we received from a new customer in November 2005 that will begin to generate revenue in February 2006 and by numerous additional opportunities identified by our recently hired National Sales Manager, Doug Smeltzer, that we are aggressively pursuing.”

“Contract services revenue for the quarter rose 11 percent to $664,481, driven by a strong backlog of projects while low volume product sales rose 43 percent to $289,551 due to shipments to the Denver Regional Transportation District for their hybrid electric bus fleet. Higher volume product sales declined to $190,124 for the quarter and $784,341 for the nine months ended December 31, 2005, primarily due to the cessation of production of wheelchair propulsion motors in November 2005. General and administrative expenses rose $191,591 for the quarter and $122,887 for the nine month period as a result of the write-off of a trade account receivable in conjunction with the bankruptcy filing of a customer, higher levels of professional fees related to our compliance with the provisions of the Sarbanes-Oxley Act and higher marketing, selling and employee benefit costs. Loss from continuing operations for the quarter and nine months ended December 31, 2005 rose due to these factors and our continuing investment in our production engineering group,” 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 Time to discuss operating results for the quarter and nine months ended December 31, 2005. To attend the conference call, please dial 1-800-313-8009 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-415-908-6248. 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 Time today. To access the playback call 1-800-633-8284 and give reservation number 21282099. 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)
							December 31, 2005	March 31, 2005
Assets
Current assets:
	Cash and cash equivalents						$ 3,913,044	5,788,232
	Short-term investments						6,533,342	2,220,594
	Accounts receivable						684,224	890,509
	Costs and estimated earnings in excess of billings on
				uncompleted contracts			467,093	435,925
	Inventories						463,133	648,173
	Prepaid expenses and other current assets						222,081	109,198
						Total current assets	12,282,917	10,092,631

Property and equipment, at cost:
	Land						181,580	181,580
	Building						2,295,067	2,292,687
	Machinery and equipment						2,586,813	2,422,034
							5,063,460	4,896,301
	Less accumulated depreciation						(2,636,353)	(2,443,590)
						Net property and equipment	2,427,107	2,452,711

Patent and trademark costs, net of accumulated
	amortization of $520,061 and $450,011						557,794	613,448
Other assets							850	850
					Total assets		$ 15,268,668	13,159,640
							December 31, 2005	March 31, 2005
Liabilities and Stockholders’ Equity
Current liabilities:
	Accounts payable						$ 368,063		678,007
	Other current liabilities						275,417		269,746
	Current portion of long-term debt						142,662		135,255
	Liabilities and commitments of discontinued
			operations				72,846		154,287
	Billings in excess of costs and estimated
			earnings on uncompleted contracts				293,231		66,510
						Total current liabilities	1,152,219		1,303,805

Long-term debt, less current portion							703,066		810,915
Long-term liabilities and commitments of discontinued
	operations						10,877		57,051
							713,943		867,966
						Total liabilities	1,866,162		2,171,771

Commitments and contingencies

Stockholders’ equity:
		Common stock, $.01 par value, 50,000,000
				shares authorized; 24,681,214 and 23,177,133
				shares issued and outstanding, respectively			246,812		231,771
		Additional paid-in capital					68,993,148		64,767,975
		Accumulated deficit					(55,837,454)		(54,011,877)
						Total stockholders’ equity	13,402,506		10,987,869
						Total liabilities and stockholders’ equity	$ 15,268,668		13,159,640

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited)
						Quarter Ended December 31,		Nine Months Ended December 31,
						2005	2004	2005	2004
Revenue:
		Contract services				$ 664,481	598,323	1,602,345	1,605,622
		Product sales				479,675	709,260	1,579,016	1,620,434
						1,144,156	1,307,583	3,181,361	3,226,056

Operating costs and expenses:
		Costs of contract services				546,919	612,544	1,681,233	1,776,612
		Costs of product sales				407,891	581,591	1,338,775	1,366,324
		Research and development				50,258	42,875	184,110	138,550
		Production engineering				224,792	93,479	564,358	93,479
		General and administrative				548,653	357,062	1,415,706	1,292,819
		Impairment of long-lived assets				353	-	1,808	2,234
						1,778,866	1,687,551	5,185,990	4,670,018

			Loss from continuing operations
				before other income (expense)		(634,710)	(379,968)	(2,004,629)	(1,443,962)

Other income (expense):
		Interest income				114,048	30,947	252,046	47,736
		Interest expense				(15,444)	(18,151)	(47,860)	(57,128)
		Other				-	-	525	10,000
						98,604	12,796	204,711	608

			Loss from continuing operations			(536,106)	(367,172)	(1,799,918)	(1,443,354)

Discontinued operations – earnings (loss) from
	operations of discontinued electronic
	products segment					18,042	(25,808)	(25,659)	(44,780)

Net loss						$ (518,064)	(392,980)	(1,825,577)	(1,488,134)

			Net loss per common share - basic
				and diluted:
					Continuing operations	$ (0.02)	(0.02)	(0.08)	(0.07)
					Discontinued operations	-	-	-	-
						$ (0.02)	(0.02)	(0.08)	(0.07)

Weighted average number of shares of common
	stock outstanding - basic and diluted					24,669,688	21,805,231	24,141,970	20,320,749

The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the quarter ended December 31, 2005:

		Power
	Technology	Products	Total
Revenue	$ 954,032	190,124		1,144,156
Interest income	110,965	3,083		114,048
Interest expense	-	(15,444)		(15,444)
Depreciation and amortization	(60,820)	(27,925)		(88,745)
Segment loss from continuing operations	(499,968)	(36,138)		(536,106)
Assets of continuing operations	12,544,942	2,723,726		15,268,668
Expenditures for segment assets	$ (102,172)	(3,595)		(105,767)

Segment information below has been reclassified 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 December 31, 2004:

		Power
	Technology	Products	Total
Revenue	$ 800,552	507,031	1,307,583
Interest income	28,949	1,998	30,947
Interest expense	(283)	(17,868)	(18,151)
Depreciation and amortization	(58,318)	(27,963)	(86,281)
Segment earnings (loss) from continuing operations	(484,558)	117,386	(367,172)
Assets of continuing operations	10,533,453	3,176,955	13,710,408
Expenditures for segment assets	$ (28,007)	(5,165)	(33,172)

The following table summarizes significant financial statement information for continuing operations of each of the reportable segments as of and for the nine months ended December 31, 2005:

		Power
	Technology	Products	Total
Revenue	$ 2,397,020	784,341		3,181,361
Interest income	244,116	7,930		252,046
Interest expense	-	(47,860)		(47,860)
Depreciation and amortization	(181,989)	(84,029)		(266,018)
Segment loss from continuing operations	(1,757,525)	(42,393)		(1,799,918)
Assets of continuing operations	12,544,942	2,723,726		15,268,668
Expenditures for segment assets	$ (172,792)	(13,776)		(186,568)

		Power
	Technology	Products	Total
Revenue	$ 2,091,489	1,134,567	3,226,056
Interest income	43,087	4,649	47,736
Interest expense	(2,108)	(55,020)	(57,128)
Depreciation and amortization	(183,103)	(83,805)	(266,908)
Segment earnings (loss) from continuing operations	(1,649,846)	206,492	(1,443,354)
Assets of continuing operations	10,533,453	3,176,955	13,710,408
Expenditures for segment assets	$ (112,124)	(5,912)	(118,036)

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 Form 10-Q filed January 26, 2006 which is available through our website at www.uqm.com or at www.sec.gov.

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Last Update: 01/26/06