UQM Technologies Reports Third Quarter and Nine Month Operating Results

Press Release 07-18

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

Contact:
John Baldiserra
BPC Financial Marketing
(800) 368-1217
or
Donald A. French, Treasurer
(303) 278-2002

FREDERICK, COLORADO, JANUARY 30, 2007…UQM TECHNOLOGIES, INC. (AMEX: UQM), a developer of alternative energy technologies, announced today operating results for the quarter and nine months ended December 31, 2006. Continuing operations for the third quarter resulted in a loss of $818,297 or $0.03 per common share on total revenue of $1,726,526 versus a loss from continuing operations of $536,106 or $0.02 per common share on total revenue of $1,144,156 for the third quarter last year. Net loss for the quarter was $824,019 or $0.03 per common share versus a net loss of $518,064 or $0.02 per common share for the comparable quarter last year.

Continuing operations for the nine months ended December 31, 2006 resulted in a loss of $2,468,911 or $0.10 per common share on total revenue of $4,642,076 versus a loss from continuing operations of $1,799,918 or $0.08 per common share on total revenue of $3,181,361 last fiscal year. Net loss for the nine months ended December 31, 2006 was $2,491,385 or $0.10 per common share versus a net loss for the comparable period last year of $1,825,577 or $0.08 per common share.

“Our business continued to experience significant growth in higher volume product sales revenue during the third quarter driven by deliveries of auxiliary motors for conventional vehicles and DC-to-DC converters for hybrid electric vehicles. Low volume product sales also showed significant growth during the quarter fueled principally by shipments of generators and motor controllers to Denver’s Regional Transportation District as part of the continued retro-fitting of their hybrid-electric bus fleet. We expect further growth in higher volume product sales to continue next quarter and beyond as we begin deliveries under our recently announced $9.25 million production order from Phoenix Motorcars, Inc. for electric propulsion systems and DC-to-DC converters for their all-electric Sport Utility Trucks”, said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc. “We expect total revenue for the fourth quarter to exceed $2 million and to see improvement in profit margins, however, losses from continuing operations may expand modestly driven by increases in production engineering and other start-up costs associated with the launch of volume production for the Phoenix electric SUT program.”

“Loss from continuing operations for the quarter and nine months ended December 31, 2006 were adversely impacted by higher levels of internally-funded research and development expenditures which rose $60,661 and $101,290, respectively, over the comparable periods last fiscal year and by new share based payment accounting rules which generated additional non-cash expenses for the quarter and nine month period of $284,674 and $759,057, respectively. Loss from continuing operations for the quarter and nine months ended December 31, 2006 rose by $282,191 and $668,993, respectively, due to these factors. Operating results for the comparable prior-year periods do not include any non-cash expenses associated with share based compensation. Accounting for share based payments is expected to continue to adversely impact the year-over-year comparability of financial results throughout the remainder of this first fiscal year of implementation,” 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, 2006. To attend the conference call, please dial 1-866-321-6651 approximately ten minutes before the conference is scheduled to begin. International callers should dial 1-416-642-5212. 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 1-866-244-4494 and give replay code 779315. International callers should dial 1-416-915-1028.

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, plug-in hybrid electric and fuel cell electric vehicles, 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, 2006	March 31, 2006
Assets
Current assets:
		Cash and cash equivalents					$ 2,219,994	4,076,806
		Short-term investments					6,162,790	6,009,394
		Accounts receivable					1,346,903	512,409
		Accounts receivable from discontinued operations					58,224	-
		Costs and estimated earnings in excess of billings on uncompleted contracts					354,894	450,044
		Inventories					699,034	467,485
		Prepaid expenses and other current assets					220,282	118,439
						Total current assets	11,062,121	11,634,577

Property and equipment, at cost:
		Land					181,580	181,580
		Building					2,306,154	2,297,467
		Machinery and equipment					3,171,314	2,808,324
							5,659,048	5,287,371
		Less accumulated depreciation					(2,930,679)	(2,683,295)
						Net property and equipment	2,728,369	2,604,076

Patent and trademark costs, net of accumulated amortization of $607,919 and $545,468							496,327	552,382

Other assets							57,211	5,053

					Total assets		$ 14,344,028	14,796,088
							December 31, 2006	March 31, 2006
Liabilities and Stockholders’ Equity
Current liabilities:
		Accounts payable					$ 649,440	534,428
		Other current liabilities					229,550	309,097
		Current portion of long-term debt					97,052	92,013
		Short-term deferred compensation under executive employment agreements					136,835	-
		Liabilities and commitments of discontinued operations					11,868	62,004
		Billings in excess of costs and estimated earnings on uncompleted contracts					438,957	221,626
				Total current liabilities			1,563,702	1,219,168

Long-term debt, less current portion							548,404	621,685
Long-term deferred compensation under executive employment agreements							171,814	210,861
							720,218	832,546

			Total liabilities				2,283,920	2,051,714

Commitments and contingencies

Stockholders’ equity:
	Common stock, $.01 par value, 50,000,000 shares authorized; 25,143,051 and 24,776,042 shares issued and outstanding						251,431	247,760
	Additional paid-in capital						71,096,909	69,293,461
	Accumulated deficit						(59,288,232)	(56,796,847)
			Total stockholders’ equity				12,060,108	12,744,374

			Total liabilities and stockholders’ equity				$ 14,344,028	14,796,088

UQM TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited)
				Quarter Ended December 31,		Nine Months Ended December 31,
				2006	2005	2006		2005
Revenue:
	Contract services			$ 720,835	664,481		2,224,315	1,602,345
	Product sales			1,005,691	479,675		2,417,761	1,579,016
				1,726,526	1,144,156		4,642,076	3,181,361

Operating costs and expenses:
	Costs of contract services			707,773	546,919		1,976,028	1,681,233
	Costs of product sales			865,567	407,891		2,268,891	1,338,775
	Research and development			110,919	50,258		285,400	184,110
	Production engineering			219,071	224,792		699,960	564,358
	Selling, general and administrative			735,785	548,653		2,188,624	1,415,706
	Impairment of long-lived assets			-	353		-	1,808
				2,639,115	1,778,866		7,418,903	5,185,990
			Loss from continuing operations before other income (expense)	(912,589)	(634,710)		(2,776,827)	(2,004,629)

Other income (expense):
	Interest income			106,041	114,048		344,252	252,046
	Interest expense			(11,749)	(15,444)		(36,336)	(47,860)
	Other			-	-		-	525
				94,292	98,604		307,916	204,711

			Loss from continuing operations	(818,297)	(536,106)		(2,468,911)	(1,799,918)

Discontinued operations – loss from operations of discontinued electronic products segment				(5,722)	18,042		(22,474)	(25,659)

			Net loss	$ (824,019)	(518,064)		(2,491,385)	(1,825,577)

		Net loss per common share - basic and diluted
			Continuing operations	$ (.03)	(.02)		(.10)	(.08)
			Discontinued operations	-	-		-	-
				$ (.03)	(.02)		(.10)	(.08)

Weighted average number of shares of common stock outstanding - basic and diluted				25,143,051	24,669,688		25,102,663	24,141,970

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, 2006:
	Technology		Power Products	Total
Revenue	$	1,078,976	647,550	1,726,526
Interest income	104,865		1,176	106,041
Interest expense	-		(11,749)	(11,749)
Depreciation and amortization	(54,383)		(48,787)	(103,170)
Segment loss from continuing operations	(745,538)		(72,759)	(818,297)
Assets of continuing operations	10,838,276		3,447,528	14,285,804
Expenditures for long-lived segment assets	$	(27,183)	(25,352)	(52,535)

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:
	Technology		Power 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 long-lived segment assets	$	(102,172)	(3,595)	(105,767)

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, 2006:
	Technology		Power Products	Total
Revenue	$	3,089,136	1,552,940	4,642,076
Interest income	340,784		3,468	344,252
Interest expense	-		(36,336)	(36,336)
Depreciation and amortization	(189,050)		(120,786)	(309,836)
Segment loss from continuing operations	(2,046,746)		(422,165)	(2,468,911)
Assets of continuing operations	10,838,276		3,447,528	14,285,804
Expenditures for long-lived segment assets	$	(144,203)	(233,871)	(378,074)

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:
	Technology		Power 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 long-lived segment assets	$	(172,792)	(13,776)	(186,568)

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 and the adequacy of our cash balances and liquidity to meet future operating needs. 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 today, which is available through our website at www.uqm.com or at www.sec.gov.

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Last Update:1/30/07