NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.
PRESS RELEASE

POWERTECH POSTS Q3 2005 FINANCIAL RESULTS

The Company's V.I.PIC program is a clear success

Blainville (Quebec), August 12, 2005 – Power Tech Corporation Inc. "PowerTech" (TSX-V: PWB) today reported its financial results for the third quarter ended June 30, 2005.

Over this past quarter, the Company did not generate any operating income. PowerTech recorded interest income totalling $9,267 on short-term investments. PowerTech's net loss was $511,356 or $0.02 per share on a diluted basis, compared to a net loss of $147,523 or $0.01 per share for the same period last year. The increase in the loss is primarily attributable to the intensification of PowerTech's commercialization activities, which has resulted in an increase in sales and marketing expenses. These expenses amounted to $163,908 for the last quarter, compared to $11,882 for the same quarter last year. The Company's administration fees were $323,357 for the third quarter, compared to $118,533 for the same period last year.

During the first three quarters of the current fiscal year, the Company's administration, sales and marketing fees were $1.3 million, compared to $203,249 for the same period last year. PowerTech's net loss for the first three quarters of this year was $1.4 million, or $0.06 per share, whereas it was $223,016 for the same period last year, or $0.01 per share.

In addition, short-term assets, cash and cash-equivalents were $508,306 as at June 30, 2005, compared to $46,794 as at August 31, 2004. These amounts arose from the merger of PowerTech with CMJ Capital Inc. in February 2005, as well as from a private financing of $2 million linked to this transaction. PowerTech became a public company, listed with the TSX Venture Exchange, following the merger with CMJ Capital. Furthermore, the Company's short-term liabilities were $302,177 as at June 30, 2005 and were composed of accounts payable and supplier accounts.

The V.I.PIC program: a clear success

PowerTech has made significant progress in the last few months. In particular, with respect to commercialization, the Company has had a great deal of success with its V.I.PIC program. In addition, on August 2, 2005, PowerTech announced the closing of a $1.5 million private financing with the company SIPAR, a renowned Quebec investor. Proceeds from this financing will enable PowerTech to continue its commercialization activities, including those related to the V.I.PIC program.

"We believe the V.I.PIC program will allow the Company to quickly make significant commercial breakthroughs. Recent feedback from the companies that are presently participating in the V.I.PIC program in Quebec and Ontario confirms the accuracy and efficiency of this strategy. They are reporting that they are impressed with our products' performance. As expected, our technology is fulfilling its promises by enabling users to realize substantial efficiency gains. Therefore, we are confident that the V.I.PIC program will result in major sales of our PicBucket units and various accessories," said Mr. Carol Murray, PowerTech's President and Chief Executive Officer.

Launched a few months ago, the V.I.PIC program is an initiative aimed at entrepreneurs, as well as distributors and dealers of construction equipment and machinery. The program allows participants to use the "PicBucket" developed by PowerTech at a minimal cost for a set period. In return, participants accept that the results of their experience using this technology and their name be used in the Company's business development efforts. Participants will also benefit from a discount on the purchase price at the end of the V.I.PIC program.

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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