UQM Technologies Announces Contract with the California Energy Commission and the National Renewable Energy Laboratory to Develop an Advanced Grid-Connect Interface

Business Wire, Nov 5, 2007

FREDERICK, Colo. -- UQM TECHNOLOGIES, INC. (AMEX:UQM), a developer of alternative energy technologies, announced today that it has received a $1,046,500 cost-share contract from the California Energy Commission's Public Interest Energy Research Program and the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) to develop an advanced grid-connect inverter under its Advanced Power Electronics Interface (APEI) Initiative. The Company's cost share on the program will be $439,000 or 42 percent. The development effort will span a two year period.

The objective of the development effort is to design a cost-effective, flexible, readily-manufactured, ready to be commercialized prototype interface that will standardize the interconnection for a modular, scalable range of APEI systems. The resulting prototype is expected to be highly integrated and modular in design. This approach will reduce manufacturing cost and complexity while having sufficient flexibility to connect many types of distributed energy systems to the electric power grid and accommodate fluctuations in grid voltages. The Company will collaborate with the University of Colorado at Boulder and the Colorado School of Mines on system modeling and certain aspects of the design effort.

"We are pleased that these two prestigious organizations have chosen our Company to develop an advanced grid-connect inverter as part of the California Energy Commission's APEI Initiative. Our extensive experience in developing power electronic controls that are compact and highly energy efficient and our manufacturing experience on electronic products such as DC-to-DC converters, will contribute to the success of this product development program," said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc.

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 October 31, 2007, which is available through our website at www.uqm.com or at www.sec.gov.