UQM Technologies Reports Second Quarter Operating Results

UQM TECHNOLOGIES, INC. (NYSE Alternext US: UQM), a developer of alternative energy technologies, announced today operating results for the quarter and six month period ended September 30, 2008. Operations for the second quarter resulted in a net loss of $1,538,111 or $0.06 per common share on total revenue of $2,277,331 versus a net loss of $1,139,894 or $0.04 per common share on total revenue of $1,990,591 for the second quarter last year.

Operations for the six month period resulted in a net loss of $2,537,826 or $0.10 per common share on total revenue of $4,070,686 versus a net loss of $2,268,645 or $0.09 per common share on total revenue of $3,445,043 for the comparable period last year.

"Total revenue for the quarter rose 14 percent driven primarily by improved product sales which increased by 20 percent to $1,690,947. Similarly, total revenue for the six month period rose 18 percent to $4,070,686, with product sales revenue increasing by 23 percent to $2,880,818. The increase in product sales for both the quarter and first half was fueled by growth in deliveries of propulsion systems to producers of on-road electric and hybrid electric vehicles. We expect deliveries for this class of product to increase further in our fiscal third quarter. Gross profit margins on product sales for the quarter and six month period improved to 22 percent and 17 percent, respectively, versus 14 percent and 8 percent for the same periods last fiscal year, reflecting improved overhead absorption and a more favorable product mix. Production engineering expense for the quarter rose 20 percent to $485,369, reflecting a continued expansion of this group and its activities. Selling, general and administrative expenses for the quarter and six month period increased 17 percent and 19 percent, respectively, reflecting a change in the timing of annual awards of incentive compensation and increased legal fees,” 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 six months ended September 30, 2008. To attend the conference call, please dial 1-866-550-6338 approximately ten minutes before the conference is scheduled to begin and provide confirmation code 4740539 to access the call. International callers should dial 1-347-284-6930. 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 4740539. 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.