NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH DISCLOSES SECOND QUARTER RESULTS

The Company increases its backlog and significantly reduces operating losses

Terrebonne (Quebec), May 28, 2008 – PowerTech Corporation, PowerTech Inc. “PowerTech” (TSX-V: PWB) today disclosed its financial results for the second quarter of its fiscal year ended March 31, 2008.

During this period revenues were $392,154, compared to $386,651 during the same quarter last year. For the first two quarters of the fiscal year, PowerTech’s sales were $477,086, whereas they were $422,589 for the same six-month period of the preceding year. Now that PowerTech has completed technical integration, revenues are expected to grow over the coming quarters with the attainment of the commercial phase of the OEM agreement with NPK Construction Equipment. The 3000 Series bucket will also soon be commercialized by NPK, who will then gradually integrate the 1000, 5000 and 4000 Series into its product line.

During the second quarter, PowerTech’s net loss was $553,088 or $0.01 per share on a diluted basis, compared to a net loss of $951,091 or $0.03 per share for the same period last year. This translates into a 42% reduction in operating loss over the same period last year. For the first six months of the fiscal year, the Company’s net loss was $1.1 million or $0.03 per share, compared to $1.8 million or $0.06 per share for the same period one year earlier.

During the last quarter, PowerTech’s administration expenses were $282,433, compared to $376,120 for the same period in 2007, a 25% reduction. Sales and marketing expenses were $173,124 for the second quarter, whereas they were $331,403 for the same quarter last year. This decline follows the conclusion of the agreement with NPK Construction, who will exclusively serve the markets of the United States and Latin America. This has allowed PowerTech to lighten its own sales structure in these regions. For the first two quarters of the present fiscal year, administration, sales and commercialization expenses were $869,229, whereas they were $1.3 million for the same period last year.

PowerTech makes progress in its three main areas of development and increases its backlog

In recent months, PowerTech steadily continued its progress in three main areas of business development: OEM agreements, its distribution network and specialized markets, resulting in an increase order backlog by 12.5% over the previous quarter.

Major development in OEM private label agreements

On February 7, 2008 the Company signed an OEM agreement with Montabert SAS to distribute its products in Europe and Middle East, Africa and New Zealand.

“This alliance opens major new markets for PowerTech, thanks to Montabert’s worldwide network of more than 200 distributors. Montabert is a leader in the design, manufacturing and distribution of construction equipment. This is the second major OEM agreement after the agreement signed in 2007 with NPK Construction Equipment, which enables us to serve markets in the United States, Mexico and Latin America,” said Carol Murray.

Strengthening the Canadian distribution network

Parallel to these OEM agreements, PowerTech finished setting up its Canadian distribution network with the announcement on April 28 of the signing of two partnership agreements with Hewitt Equipment and Atlantic Tractors & Equipment Ltd. These agreements allow PowerTech to cover the regions of Quebec and the Maritime provinces.

Furthermore, in recent weeks PowerTech began trials, of its 5000 Series PicBucket. This version is designed for large construction firms. “This is one of the most important market segments targeted by PowerTech. Delivery of this new PicBucket version will begin in autumn 2008. It will also be marketed under private brand names via the OEM agreements made with NPK and Montabert,” said Mr. Murray.

Promising breakthrough in the military sector

In specialized markets, PowerTech made a promising breakthrough into the military market by obtaining its first contract with the Canadian Armed Forces on April 17. This business agreement has an initial value of $300,000 and offers the potential of an additional $925,000.

“Furthermore, several Canadian municipalities are presently carrying out public tenders to acquire our technology. This is a highly promising market for the Company,” said Mr. Murray, President and Chief Executive Officer of PowerTech.

“PowerTech has made several important breakthroughs in recent months that have strengthened our ability to commercialize our products throughout the world. Revenue growth is expected in coming quarters as we execute on our commitments with our partners and increase our product lines,” concluded Mr. Murray.

About PowerTech (www.powertechci.com)

PowerTech is the only company in the world that manufactures and commercializes percussion technology with interchangeable tools and accessories for the construction, demolition and military industries.

PowerTech's percussion technology is a technological breakthrough that combines the power of a hydraulic hammer with the stripping force and manoeuvrability of a conventional bucket. Powertech’s products are marketed under the PicBucket® and PicHammer® names as well as under world renowned private label brands thru OEM agreements with large manufacturers.

The trademarks PicBucket®, PicHammer® and the Powertech logo are registered trademarks of Powertech Canada Inc.

Forward-Looking Statements

Certain statements included herein, including those that express management's expectations or estimates of our future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. We disclaim any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise.

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

 

-30-

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 ext. 101
Fax: (450) 963-4411
E-mail: carol.murray@powertechci.com

Investor relations:
Mr. Marc Jasmin CMA
President
Jasmin Financial Communications Inc.
Phone: (450) 963-6400 ext: 202
Cell: (514) 231-2360
E-mail: marc@comfinjasmin.com

Media Relations:
Frédéric Tremblay
HKDP Communications and public affairs
Tel.: (514) 395-0375, ext. 234
E-mail: ftremblay@hkdp.qc.ca

Back