NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH POSTS Q2 RESULTS

The significant increase in revenues is the result of the commercial success of the PicBucket

Terrebonne (Quebec), May 23, 2007 – PowerTech Corporation Inc. “PowerTech” (TSX-V: PWB) today disclosed its financial results for the second quarter of its current fiscal year ended March 31, 2007.

During this period, the Company recorded sales of $386,651, compared to $39,500 over the same quarter last year. Revenues generated in the second quarter came from the sale of 15 PicBucket units and accessories, several of which were sold to NPK Construction Equipment “NPK”. For the first half of this fiscal year, PowerTech’s sales were $422,589, compared to $139,640 for the same six-month period of the preceding year.

“PowerTech has just reached a new level of commercialization maturity by posting a significant increase in sales over this past quarter. This major revenue growth is a direct result of the Company’s commercial development initiatives during the past year, which have led to the signing of several promising partnership agreements. Today, we are starting to reap the fruits of our efforts and we are confident that this is only a beginning,” said Mr. Carol Murray, PowerTech’s President and Chief Executive Officer.

During the second quarter, PowerTech’s net loss was $925,013 or $0.03 per share on a diluted basis for the current fiscal year, compared to a net loss of $654,001 or $0.02 per share for the same quarter of the preceding fiscal year. This higher loss is mainly attributable to the final period of amortization of three major development projects, interest on issued debentures, as well as an increase in administration, sales and marketing expenses. The increase in administration expenses is the result of, among other factors, higher legal fees related to the formation of partnership agreements and the intensification of production activities because of realized sales. Meanwhile, sales and marketing expenses are higher primarily due to several new demonstration and trial activities with potential clients. These commercialization initiatives follow sustained start-up efforts and the Company’s participation at targeted industrial tradeshows, such as Condex (Las Vegas), National Heavy Equipment Show (Toronto) and the Utility Construction Expo (Las Vegas). Furthermore, the Company absorbed a charge related to the depreciation of demonstration units used as part of the V.I.PIC program. Also, the Company paid severance compensaton to eliminate one management position in the U.S. market. This position was abolished following the signing of an agreement with NPK. For the six first months of the fiscal year, the Company’s net loss was $1.7 million or $0.06 per share, compared to $1.0 million or $0.04 per share for the same period one year earlier.

During the last quarter, PowerTech’s administration expenses were $376,120, compared to $298,951 for the same period in 2006. Sales and marketing expenses were $331,403 during the second quarter, compared to $270,372 for the same quarter last year. For the first two quarters of the current fiscal year, adminstration, sales and marketing expenses were $1.3 million compared to $0.9 million during the same period last year. Notably, this increase is the result of an intensification of commercial development activities carried out by the Company, both in North America and Europe.

In terms of short-term assets, cash and cash-equivalents were $100,883 as at March 31, 2007, compared to $1.3 million as at September 30, 2006 while total current assets were $1.7 million as at March 31, 2007 versus $2.8 million as at September 30, 2006. This past April, PowerTech concluded a new private financing that allowed the Company to raise gross proceeds of $3.2 million. Furthermore, PowerTech’s total assets were $2.3 million as at March 31, 2007, compared to $3.4 million as at September 30, 2006. Short-term liabilities as at March 31, 2007 were $1.2 million as compared to $400,444 as at September 30, 2006. The liability component of the convertible debentures was $2.5 million as at March 31, 2007, as compared to $2.4 million as at September 30, 2006. Finally, also as at March 31, 2007, the long-term debt was $60,379, whereas it was $475,569 as at September 30, 2006.

Reaching a new level of commercial maturity

As part of the manufacturing agreement concluded with PowerTech last February, NPK Construction Equipment has already purchased several PicBucket demonstration units. These units are being showcased in the United States and Latin America. NPK is a world leader in the construction industry with a network of more than 300 points of sale. PowerTech has also launched its European commercial development strategy. As a first step, last March the Company reached a distribution agreement with French company Bergerat Monnoyeur. For more than 100 years, this company has distributed Caterpillar products. Today, this company does business in nine regions of France via its network of close to 50 branches.

“PowerTech has also partnered with the company Degeberga Grus & Schakt, which will be a high profile ambassador for the Company in Europe. This specialized Swedish entrepreneur is a credible reference which can help PowerTech generate demand for its technology in Europe. Currently, other partnerships are being explored that could eventually lead to concrete agreements, enabling the Company to expand in Europe,” said Mr. Yves Sicotte, PowerTech’s Vice-President, Sales and Marketing.

PowerTech is also focusing on developing niche markets. In this regard, the Company has made a promising breakthrough into the rental market. The CAT Rental Store network, a division of Finning Canada, recently purchased PicBucket units for its Calgary and Edmonton branches.

With the latest financing that was completed in April, the Company has the resources necessary to continue implementing its commercialization strategy and technological development plan. Regarding technological development, this past April the Company launched the 3000 Series, a new more powerful version of the PicBucket designed for 8.5 to 16 ton excavators.

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 percussion bucket, commercialized under the PicBucket and PicHammer brand names, 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 the performance, productivity and functionality of demolition and excavation equipment.

* 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

Investor Relations:
Sylvain Archambault
Evolution Group Inc.
Tel.: (514) 816-5001; Toll free: (866) 348-1167
E-mail: s.archambault@evolutiongrp.com
www.evolutiongrp.com

Media Relations:
Frédéric Tremblay
HKDP Communications and public affairs
Tel.: (514) 395-0375, ext. 234

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