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PRESS RELEASE:

POWER TECH CORPORATION INC.
PRESS RELEASE

POWERTECH DISCLOSES FINANCIAL RESULTS FOR Q2 2005

In recent months, the Company rolls out marketing plan as scheduled

Blainville (Quebec), May 27 2005 – PowerTech Corporation Inc. "PowerTech" (TSX-V: PWB) today disclosed its financial results for the second quarter of 2005, which exceptionally cover a four-month period from Dec. 1, 2004 to March 31, 2005. This is because of PowerTech's decision to make September 30th the date of its fiscal year end. PowerTech became a public company listed on the TSX Venture Exchange following its merger with CMJ Capital Inc., a capital pool company, in February 2005. This merger resulted in a private financing of $2 million consisting of the issuance of 5 million common shares with a per unit price of $0.40.

During the second quarter of 2005, the Company earned no revenues from operations. With respect to other revenues, the Company recorded revenues of $39,919, of which $35,150 was the result of a gain on the reimbursement of convertible debentures carried out February 14, 2005. PowerTech's net loss is $637,655 or $0.03 per share on a diluted basis, compared to a net loss of $46,794 or $0.01 per share for the same period last year.

The Company's sales and administration expenses were $618,425 for the last quarter, compared to $72,834 for the same quarter last year. This increase is mainly explained by higher expenses incurred by PowerTech's strategic marketing plan roll-out.

Marketing plan roll-out

"These past months have enabled PowerTech to roll out its marketing plan as scheduled. Presently, we are beginning a major new phase in our marketing strategy that will lead the Company to partner with various Quebec construction sites in the coming weeks. We believe that these projects provide our technology with excellent visibility and showcase its high efficiency and numerous benefits for the construction industry," underlined Mr. Carol Murray, PowerTech's President and Chief Executive Officer.

PowerTech's marketing plan targets heavy machinery distributors, construction companies, as well as public works managers. PowerTech is also approaching some large OEM. To further its development, the Company intends to favour the signing of commercial agreements or partnerships with major players in the construction industry.

The Company's financing costs were $20,279 during the last quarter, compared to $267 for the same period one year earlier. Financing fees incurred this quarter are attributable to the interest costs related to the convertible debentures issued by the Company between March and July 2004. These debentures were reimbursed in February 2005.

Furthermore, with respect to short-term assets, cash and cash-equivalents were $1.05 million as at March 31, 2005, compared to $46,794 as at August 31, 2004. These amounts were generated by the merger with CMJ Capital Inc. in February 2005, as well as by the concurrent $2 million private financing related to this transaction. The Company's short-term liabilities were $216,056 as at March 31, 2005 and comprised accrued expenses and accounts payable.

About PowerTech (www.powertechci.com)

PowerTech specializes in developing, integrating and commercializing leading edge technologies allowing substantial performance, productivity and functionality improvements in excavation equipment and systems for the general construction industry and several other applications in the aluminum, mining, tunnel digging, forestry, archeology and military sectors.

* The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuray of this press release.

-30-

Source:

Power Tech Corporation Inc.
www.powertechci.com

 

For further information:

Mr. Carol Murray
President and Chief Executive Officer
Power Tech Corporation Inc.
Tel.: (450) 419-5400
Fax: (450) 419-5411
carol.murray@powertechci.com

Frédéric Tremblay
HKDP
Tel.: (514) 395-0375, ext. 234
ftremblay@hkdp.qc.ca

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