Propulsion Motors to Be Developed are Expected to Have Commercial Applications in Small Utility Vehicles Such as Forklifts, Scissor Lifts and Golf Carts

FREDERICK, Colo.-- UQM TECHNOLOGIES, INC. (Amex: UQM - News), a developer of alternative energy technologies, announced today that it has received a $599,000 contract from the U.S. Marine Corps to develop a hybrid electric propulsion system to power small unmanned ground combat vehicles with vehicle weights of 500 pounds to one ton. The propulsion system to be developed includes a 10 kW propulsion motor, an in-line planetary gear set and a dual motor controller with an integrated 60-hertz inverter, which will operate when the vehicle is stationary. Inverters are used to convert direct current (DC) output of power generation equipment to 110/220-volt alternating current (AC). Many household and commercial products run on 110/220-volt AC and the vehicle will have the capability to power a variety of such accessories. The contract provides for an initial period of performance of two years with additional options to 1) develop a generator and generator controller; 2) integrate the developed system into a vehicle platform; and 3) deliver additional hybrid electric systems for specific military platforms, which if exercised, will increase the value of the contract to $719,741.
 

Commenting on the award, UQM Technologies' Vice President of Operations, Ron Burton, said, "This contract represents an excellent opportunity for the Company to develop a dual use propulsion system that will not only meet the Marine Corps objective for their highly mobile and readily transportable small unmanned ground combat vehicle, but will also be ideally suited for a broad range of small commercial utility vehicles that are currently powered by lesser performing and inefficient brushed DC motors. The motors to be developed under this contract will be dimensionally sized and powered to be a replacement motor system for these commercial vehicles and we intend to aggressively pursue the adoption of this UQM® system with a variety of small vehicle manufacturers."

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.

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 are contained in our Form 10-Q for the quarter ended June 30, 2004 and is available through our website at www.uqm.com or at www.sec.gov.