NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH ANNOUNCES ITS FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006

A year marked by the formation of numerous strategic alliances
and the acceleration of the Company’s technological development program

Terrebonne (Quebec), January 12, 2007 – PowerTech Corporation Inc. “PowerTech” (TSX-V: PWB) today disclosed its financial results for the fiscal year ended September 30, 2006.

During this period, the Company generated sales revenues of $419,707, arising mainly from the sale of PicBucket units and accessories. This compares to no sales revenues last year. The Company’s other revenues totalled $49,092 during the year 2006, whereas this amount stood at $81,274 last year. This difference is primarily explained by the reimbursement of 10 convertible debentures in 2005, which generated a non-recurring gain of $35,150.

PowerTech’s net loss was $2.2 million or $0.08 per share on a diluted basis during the last fiscal year, compared to a net loss of $1.8 million or $0.08 per share for the preceding fiscal year.

During the last year, the Company’s administration expenses were $1.1 million, compared to $1.2 million for fiscal 2005. Sales and marketing expenses amounted to $828,751 in 2006, whereas they were $454,508 for fiscal 2005. This increase reflects PowerTech’s work to implement its business development strategy, in particular with respect to the recruitment of four new regional sales managers – three in Canada and one for the North East region of the United States. Amortization expense of the Company’s deferred development expenses were $181,042 in 2006, compared to $69,741 the year before. The increase in amortization of deferred development expenses is a direct result of the intensive efforts by the Company to develop new versions of its PicBucket that target other promising market segments.

Furthermore, short-term assets, cash and cash-equivalents were $1.3 million as at September 30, 2006, compared to $1.4 million as at September 30, 2005. Despite a loss recorded in 2006, the Company was able to maintain liquid assets at a comparable level to that posted at the same date one year earlier. This was due to the completion of two new rounds of financing totalling more than $2 million. Furthermore, PowerTech’s total assets were $3,417,902 as at September 30, 2006, compared to $2,530,673 as at September 30, 2005. With respect to liabilities, on September 30, 2006, current liabilities were $393,291, and long-term debt, including the convertible debentures, totalled $2,857,725 compared to $204,797 and $1,419,731 respectively the previous year.

Numerous strategic alliances

The year 2006 saw PowerTech improve its positioning in many diverse areas, such as through the formation of new distribution agreements with strategic partners and the development of new innovative products targeting high-growth markets.

“Today, PowerTech is a Company that benefits from the support of several world-class partners in its industry. These strategic alliances provide us with access to major markets across Canada, as well as in the United States and Europe,” said Mr. Carol Murray, President and Chief Executive Officer of Powertech.

Notably in 2006, the Company signed two distribution agreements with the companies Toromont Industries Ltd. and Thiessen Equipment Ltd. The agreement struck with Toromont, a major distributor of Caterpillar heavy equipment, enables PowerTech to market its products in the provinces of Ontario, Manitoba and Newfoundland. Thiessen is a world-renowned mining equipment specialist that mainly distributes its products in Canada and the United States.

During the last fiscal year, Powertech announced the conclusion of a distribution agreement with the company Finning (Canada), a deal that will permit it to market its products in the booming market of Western Canada. In this region of the country, Finning operates a major network of branches that include the cities of Vancouver, Calgary and Edmonton. In the United States, PowerTech concluded distribution agreements with sister companies Low Country Machinery and Central Georgia JCB, operating in the State of Georgia in the United States.

New products: new markets

Building on the success of the first version of the PicBucket, the Company recently launched the 1000 Series, which targets the rapidly growing mini-excavator market. Furthermore, the Company is presently working on the development of the 3000 Series, aimed at the large-sized excavator market (up to 15 tons). Qualification trials for this new series will be conducted this winter and spring with market launch expected in the summer of 2007.

“Our technological development program has also led to trials of the Dual Hydraulic Unit (DHU) Series. This is a PicBucket equipped with, as its name indicates, two hydraulic cells. The DHU is designed for the 20 to 30 ton excavator market, the largest segment of this market in the construction industry. This new multi-unit technological platform could allow for a significant increase in the number of possible applications for the PicBucket and be an important success lever for us in the future,” said Mr. Murray.

A bright future

In 2006, PowerTech completed significant new steps in its development, which have paved the way for rapid growth in its business activities. “The major advantages offered by our technology are becoming better and better known in the industry and our target markets; we are backed by an expanding network of business allies; our marketing activities are intensifying; we have an effective and targeted technological development program in high growth potential markets; and internally we are led by a dynamic and highly competent executive team. For these various reasons, we look forward to the continuation of PowerTech’s development plan in 2007,” concluded Mr. Murray.

Modifications to the stock option plan

On January 8, 2007, the board of directors of PowerTech adopted a resolution to modify its stock option plan in order to conform to the conditions of the TSX Venture Exchange and increase the number of stock options that can be issued under the plan from 2,462,500 to 3,011,986 common shares. The number of common shares that can be issued within the stock option plan was increased, in part, to reflect the increase in the number of PowerTech common shares in circulation, due primarily to recent private placement financings.

The change to the stock option plan is subject to the approval of PowerTech shareholders at the next annual general and extraordinary shareholder meeting this February 7, 2007.

About PowerTech (www.powertechci.com)

PowerTech is the only company in the world that manufactures and commercializes a percussion bucket for the construction, demolition, aluminum, mining, tunnel digging, forestry and military industries. PowerTech's PicBucket is a technological breakthrough that combines the power of a hydraulic hammer with the stripping force and maneuverability of a conventional bucket.

Powertech intends to position itself as a leader in the development, integration and commercialization of leading edge technologies that allow for substantial improvements in equipment performance, productivity and functionality.

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

 

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Source:

Power Tech Corporation Inc.
www.powertechci.com

For further information:

Carol Murray
President and Chief Executive Officer
Corporation Power Tech Inc.
Tel.: (450) 963-6400
Fax: (450) 963-4411
E-mail: carol.murray@powertechci.com

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

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