UQM Technologies Reports First Quarter Operating Results

FREDERICK, Colo.--(Business Wire)--
UQM TECHNOLOGIES, INC. (AMEX: UQM), a developer of alternative
energy technologies, announced today operating results for the quarter
ended June 30, 2008. Operations for the first quarter resulted in a
net loss of $999,715 or $0.04 per common share on total revenue of
$1,793,355 versus a net loss of $1,128,751 or $0.05 per common share
on total revenue of $1,454,452 for the first quarter last year.

"Total revenue for the quarter rose 23 percent driven by double
digit growth in both contract services revenue and product sales
versus the first quarter last fiscal year. Improvements in gross
profit margins and reduced production engineering expenditures more
than offset higher selling, general and administrative expenses
resulting in lower net losses for the quarter versus the same quarter
last fiscal year," said Donald A. French, UQM Technologies' Treasurer
and Chief Financial Officer. "As we announced earlier, demand for
propulsion motors during the quarter far outpaced last years levels
which we expect will translate into continue growth in product sales
revenue over the remainder of the fiscal year."

The Company will host a conference call today at 4:30 p.m. Eastern
Time to discuss operating results for the quarter ended June 30, 2008.
To attend the conference call, please dial 1-866-322-8032
approximately ten minutes before the conference is scheduled to begin
and provide confirmation code 2456486 to access the call.
International callers should dial 1-416-640-3406. 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 1-888-203-1112 and give replay code 2456486.
International callers should dial 1-647-436-0148.

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.

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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UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)

June 30, 2008 March 31, 2008
------------- --------------
Assets
------------------------------------------
Current assets:
Cash and cash equivalents $ 3,862,512 3,176,084
Short-term investments 5,427,785 6,589,808
Accounts receivable 1,045,905 1,304,139
Costs and estimated earnings in excess
of billings on uncompleted contracts 548,461 649,670
Inventories 1,131,415 961,489
Prepaid expenses and other current
assets 255,533 119,647
------------- --------------
Total current assets 12,271,611 12,800,837
------------- --------------

Property and equipment, at cost:
Land 181,580 181,580
Building 2,460,103 2,460,103
Machinery and equipment 3,671,846 3,558,524
------------- --------------
6,313,529 6,200,207
Less accumulated depreciation (3,417,570) (3,317,812)
------------- --------------
Net property and equipment 2,895,959 2,882,395
------------- --------------

Patent and trademark costs, net of
accumulated amortization of $691,866 and
$677,957 464,941 477,765
Other assets 347,978 241,549
------------- --------------
Total assets $ 15,980,489 16,402,546
============= ==============

June 30, 2008 March 31, 2008
------------- --------------
Liabilities
------------------------------------------
Current liabilities:
Accounts payable $ 964,039 740,527
Other current liabilities 518,120 372,285
Current portion of long-term debt 107,909 106,002
Short-term deferred compensation under
executive employment agreements 368,334 364,000
Billings in excess of costs and
estimated earnings on uncompleted
contracts 760,232 707,848
------------- --------------
Total current liabilities 2,718,634 2,290,662
------------- --------------

Long-term debt, less current portion 389,283 416,923
Long-term deferred compensation under
executive employment agreements 637,426 633,873
------------- --------------
1,026,709 1,050,796
------------- --------------
Total liabilities 3,745,343 3,341,458
------------- --------------

Commitments and contingencies

Stockholders' equity:
Common stock, $.01 par value, 50,000,000
shares authorized; 26,526,737 and
26,526,737 shares issued and
outstanding 265,267 265,267
Additional paid-in capital 77,992,814 77,819,041
Accumulated deficit (66,022,935) (65,023,220)
------------- --------------
Total stockholders' equity 12,235,146 13,061,088
------------- --------------
Total liabilities and stockholders'
equity $ 15,980,489 16,402,546
============= ==============
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UQM TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)

Quarter Ended June 30,
------------------------
2008 2007
---------- ----------
Revenue:
Contract services $ 603,484 514,750
Product sales 1,189,871 939,702
------------ -----------
1,793,355 1,454,452
------------ -----------
Operating costs and expenses:
Costs of contract services 535,660 461,146
Costs of product sales 1,063,435 964,403
Research and development 102,498 98,324
Production engineering 407,848 546,033
Selling, general and administrative 760,324 629,836
Gain on sale of property and equipment - (4,000)
------------ -----------
2,869,765 2, 695,742
------------ -----------

Operating loss (1,076,410) (1,241,290)

Other income (expense):
Interest income 84,278 123,439
Interest expense (9,116) (10,900)
Other 1,533 -
------------ -----------
76,695 112,539
------------ -----------

Net loss $ (999,715) (1,128,751)
============ ===========

Net loss per common share - basic and
diluted $ (0.04) (0.05)
============ ===========

Weighted average number of shares of common
stock outstanding - basic and diluted 26,526,737 25,254,531
============ ===========
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The following table summarizes significant financial statement
information of each of the reportable segments as of and for the
quarter ended June 30, 2008:

Power
Technology Products Total
----------- ---------- -----------
Revenue $ 1,071,869 721,486 1,793,355
Interest income $ 82,686 1,592 84,278
Interest expense $ - (9,116) (9,116)
Depreciation and amortization $ (58,334) (55,333) (113,667)
Segment loss $ (922,581) (77,134) (999,715)
Assets $12,258,070 3,722,419 15,980,489
Expenditures for long-lived segment
assets $ (114,407) - (114,407)
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The following table summarizes significant financial statement
information of each of the reportable segments as of and for the
quarter ended June 30, 2007:

Power
Technology Products Total
------------ ---------- -----------
Revenue $ 704,374 750,078 1,454,452
Interest income $ 121,476 1,963 123,439
Interest expense $ - (10,900) (10,900)
Depreciation and amortization $ (55,452) (50,724) (106,176)
Segment loss $ (984,590) (144,161) (1,128,751)
Assets $ 14,312,092 3,771,078 18,083,170
Expenditures for long-lived
segment assets $ (119,254) (39,293) (158,547)
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BPC Financial Marketing
John Baldiserra, 800-368-1217
or
UQM Technologies, Inc.
Donald A. French, 303-278-2002

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