NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.
PRESS RELEASE

POWERTECH ANNOUNCES THE CLOSING OF A $1.5 MILLION PRIVATE FINANCING

Financing proceeds will enable the Company to accelerate its commercialization activities

Blainville (Quebec), Tuesday, August 2, 2005 – Mr. Carol Murray, President and Chief Executive Officer of Power Tech Corporation Inc. "PowerTech" or "the Company" (TSX-V: PWB), today announced that the Company has just closed a $1.5 million private financing with the company SIPAR Inc. "SIPAR".

This financing was realized through the issuance of a convertible debenture providing an interest rate of 12.95% expiring August 2, 2010. The debenture is convertible at any time into units of the Company at an initial price of $0.70 per unit, reflecting the stock’s last closing price. Each unit comprises one PowerTech common share and an equity warrant. The conversion price will increase according to the minimum provisions set out by the stock exchange.

"We are very pleased that PowerTech is being backed by a renowned Quebec investor. SIPAR's support will not only be beneficial from a financial perspective, but will also assist us in our various corporate and commercial development initiatives. The financing proceeds will allow the Company to continue its commercialization activities in the coming months, especially in Canada and the United States," underlined Mr. Carol Murray, PowerTech's President and CEO.

Using patented technology, PowerTech has developed the PicBucket, a multifunctional bucket that can be used to carry out excavation, demolition, backfilling and compacting work far more efficiently than traditional equipment. The buckets are shovels located at the end of the mechanical arms of backhoes, "backhoe loaders", on excavators and mini-excavators.

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.

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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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