UQM UQM Technologies Inc

UQM Technologies Completes Divestiture of Contract Electronics Manufacturing Business FREDERICK, Colo., May 20 /PRNewswire-FirstCall/ -- UQM TECHNOLOGIES, INC. , a developer of alternative energy technologies, announced today that it has completed the divestiture of the assets of its wholly-owned subsidiary UQM Electronics, Inc., a contract electronics manufacturer, to CD&M - Electronics, Inc. The purchase price included the purchase of manufacturing equipment and inventory. The Company received $0.9 million in cash at closing and a 15 percent ownership interest in privately-held CD&M - Electronics, Inc. The purchaser has also entered into a sublease with the Company for the remaining term of the lease obligation on the St. Charles, Missouri manufacturing facility. The Company expects to report a loss from operations of the discontinued contract electronics manufacturing business of $3.4 million for the year ended March 31, 2004 consisting of operating losses for the business during the fiscal year of $2.6 million and a loss on disposal of $0.8 million. 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 http://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 charge to earnings that will result from the sale or closure of the Company's contract electronics manufacturing business during the quarter ending March 31, 2004. 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 December 31, 2003 and is available through our website at uqm.com or at sec.gov. DATASOURCE: UQM Technologies, Inc. CONTACT: Donald A. French, Treasurer of UQM Technologies, Inc., +1-303-278-2002 Web site: http://www.uqm.com/

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