UQM Technologies Receives Contract From the U.S. Department of Energy for the Development of a High Performance Integrated Electric Motor

Development Program to Focus on the Enhancement and Integration of Electronic Motor Controls and the Commercial Design of the Company's Recently Patented Rotor Position Sensing Technology

FREDERICK, Colo., July 14 -- UQM TECHNOLOGIES, INC. (AMEX:UQM) , a developer of alternative energy technologies, announced today that it has been awarded a two year, $750,000 contract from the U.S. Department of Energy ("DOE") to continue the development of a modular line of high performance motors for hybrid electric and fuel cell electric vehicles under the Small Business Innovation Research Program. The current project will focus on the enhancement and integration of electronic control technology for the Company's line of modular motors previously developed with funding from the DOE and on the commercial engineering of the Company's recently patented rotor position sensing technology for this class of UQM(R) permanent magnet motors and generators. Through innovative cooling concepts, the UQM(R) modular motors and generators improve the continuous power output of the Company's currently offered motors and generators by up to 25 percent without increasing the size or weight of the machine. The design can be easily configured to a number of output power levels and applications, and since the family of motors is built with 95% common parts, tooling investments and manufacturing costs are minimized. Presently, the motor can be configured over the power range of 20 to 110 horsepower (15 to 80 kW). The enhancement and integration of electronic motor controls to be undertaken in this project is expected to further reduce manufacturing cost.

"This project is a further step in our ongoing strategy to position our technology as versatile and affordable electric propulsion for advanced vehicles," said Jon Lutz, UQM's Director of Engineering. "The project to design a high performance line of modular motors was quite successful, resulting in enhanced motor performance at a lower manufacturing cost and the filing of three patent applications. This project is designed to take the next logical step of integrating optimized electronic controls with the motor. In addition, the project will encompass the engineering required to offer our patented low cost rotor position sensing technology as a stand-alone commercial product."

"We are pleased that the Department of Energy is continuing to support the development of our next generation of fully integrated permanent magnet motors and generators for hybrid electric and fuel cell electric vehicles," said William G. Rankin, President and Chief Executive Officer of UQM Technologies. "This project will not only allow us to continue the development of our next generation of high performance motors and generators, but also will accelerate the path to commercialization of our patented rotor position sensing technology for which we believe there are broad applications and significant opportunities."

UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, telecommunications, medical, military and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including power 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. Its electronic products manufacturing facility is located in St. Charles, Missouri. For more information on the Company, please visit its worldwide website at www.uqm.com.

This press 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 press 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. Important risk factors that could cause actual results to differ from those contained in the forward-looking statements include our ability to be profitable, our ability to obtain additional financing, our reliance on major customers and suppliers, our ability to commercialize our products, our ability to manage growth and the possibility that product liability insurance may become unavailable to us.