UQM will manufacture its electric propulsion systems in Colorado through 2017 with plans to produce product in China beginning in 2018. Initially, the PowerPhase Pro 135 electric propulsion system will be sold to address the 6-8 meter shuttle bus market in China, with larger delivery truck and transit bus applications slated to begin in early 2017 with the PowerPhase HD® 250 system.

ITL is responsible for the entire electric drive supply to Eastlake and its subsidiaries. Because of its operational independence from Eastlake, ITL’s goal is to become a major e-drive system supplier to the entire China market.

ITL has a preferred supplier relationship with Wuhan Public Transport Group, a China state-owned operator of public buses, operating more than 330 bus lines with a fleet of almost 7,000 buses with a goal to convert much of the fleet to new energy and electric buses.

ITL’s parent company, Eastlake, is a holding company based in Wuhan, China whose subsidiaries include, in addition to ITL, three vehicle manufacturers (Yixing, Yangtse and Speka), which combined have more than 1.6 million square feet of manufacturing facilities and capacity to produce over 15,000 vehicles a year. With more than one thousand hybrid and pure electric trucks and buses already on the road, ITL will partner with Eastlake to bring anticipated significant volume of new UQM-powered electric vehicles to the China market.

The signing of this supply agreement with ITL is a major milestone for UQM, and is the result of many years of focused attention to the China market. This achievement solidifies our long-term strategy to become a major global provider of electric propulsion systems; particularly in China, the largest market in the world for electric vehicles.

—Joe Mitchell, Chief Operating Officer and Interim President and CEO

The Company will file with the Securities and Exchange Commission a copy of the Supply Agreement as an exhibit to its Report on Form 8-K.