NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH REPORTS A SIGNIFICANT INCREASE IN REVENUES IN THE THIRD QUARTER

Terrebonne (Quebec), August 27, 2008 – PowerTech Corporation Inc. ("PowerTech") (PWB on the TSX venture exchange) reports revenues of $542,005 for its third quarter ended June 30, 2008, a 330% increase over the same period last year. The net loss for the quarter amounted to $563,663 ($0.02 per share) which compares with a net loss of $686,573 ($0.02 per share) for the same period in 2007.

Concurrently, PowerTech confirms the conversion into common shares of an amount of $77,680 of accrued interest to July 9, 2008 in regards to debt held by «Le Fier Cap Diamant, Société en commandite». The payment is consistent with the terms of the current Placement and will be converted at a price of $0.40 and includes one common share warrant at an exercise price of $0.50 which translates into the issuance of 194,200 shares and 194,200 warrants.

Financial Highlights

Selected Financial Information
For the three months and nine months periods ended June 30,

	Q3/2008	Q3/2007	YTD/2008	YTD/2007
Revenues	542,005	125,977	1,019,091	548,566
Net Loss	(563,663)	(686,573)	(1,688,261)	(2,448,062)
Basic and diluted loss per share	(0,02)	(0,02)	(0,05)	(0,08)
Cash flow used for operating activities	(256,763)	(574,684)	(1,255,194)	(1,711,208)

Additional highlights

• Significant increase in quarterly revenues compared to last year largely explained by:
  • The delivery of five PicBucket® units to the Canadian Armed Forces which also allowed to obtain accredited vendor status from NATO (North Atlantic Treaty Organization);
  • Continued deliveries in regards to the OEM agreement with NPK Construction Equipment covering the United States, Mexico and Latin America
• Continuous expansion of a worldwide sales and distribution network:
  • Access to 22 additional dealerships in Canada through partnerships with Hewitt Equipment and Atlantic Tractors & Equipment Ltd
• Following the first sales of the NPK personalized series 2000 PicBucket®, Powertech is set to expand its product offering with the launch of the NPK personalised series 3000 and the Powertech series 5000 in the fourth quarter.
• Subsequent to the end of the quarter, strengthening of PowerTech’s balance sheet through the completion of a private placement financing for a gross amount of
  $890 000.

Commenting on the quarterly results, Mr. Carol Murray, President and Chief Executive Officer stated: "We are satisfied with the evolution of our business in the third quarter. Confronted in the past with the longer than expected technical integration of our technology to the NPK Construction Equipment product line, we were able to work closely with this customer, to adapt the product to his specific needs and to finally start accelerating our sales.

More so, we were able to increase our direct sales, obtaining an important first order from the Canadian military and by the same token, NATO certification. Considering, these valuable milestones, the ongoing reduction of our operating expenses, the expansion of our sales and distribution network and the increased market recognition of our technology’s competitive advantages, we are well positioned to continue on this path of increased sales and operating cash flows to the benefit of all stakeholders."

Three-month period ended June 30, 2008

In comparison with the third quarter of last year, revenues for the third quarter of 2008 increased 330% to $542,005 compared to $125,977 in the third quarter of 2007. Revenues increased due the continued growth of sales through distributors, the acceleration of deliveries to NPK Construction Equipment and delivery on the Canadian Army contract in the quarter.

Gross margins for the third quarter of 2008 were 31.1% compared to 13.0 % in the third quarter of 2007 and mainly reflect increased production efficiencies and the impact of higher margin direct sales. Administrative expenses increased slightly which is mostly explained by an increase in non-cash stock-based compensation expenses. Selling and commercialisation expenses decreased 32% from $254,183 in the third quarter of 2007 to $174,019 in the third quarter of 2008 reflecting the Company’s change in weighting between direct sales and sales through a network of dealers. Development expenses amounted to $68,264 in the third quarter of 2008 compared to $25,742 in the third quarter of 2007 mostly reflecting increased development expenses related to the Series 5000 PicBucket®. The series 5000 PicBucket® aims to equip large 20 to 30 tons excavators and represents one of the most significant market segments targeted by PowerTech. Initial sales of this product line are expected to begin in the fall of 2008.

Nine-month period ended June 30, 2008

In comparison with the first nine months of last year, revenues increased 86% amounting to $1,019,091 compared to $548,566 for the first nine months of 2007. Revenues increased over last year due the continued growth of sales through distributors, the acceleration of deliveries to NPK and delivery on the Canadian Army contract in the third quarter of 2008.

Gross margins for the first nine months of 2008 were 23.3% compared to 18.7 % for the first nine months of 2007 and mainly reflect increased production efficiencies and the impact of higher margin direct sales. Administrative expenses decreased 12% to $838,438 compared to $954,266 and are explained by a reduction of overhead costs. Selling and commercialisation expenses decreased 43% from $884,103 for the first nine months of 2007 to $505,414 for the first nine months of 2008 reflecting the Company’s ongoing transition from direct sales to sales through dealer networks. Development expenses increased for the first nine months of 2008 amounting to $103,444 compared with $25 742 for the first nine months of 2007.

Outlook

Mr. Carol Murray, President and Chief Executive Officer added: "We are comfortable that our long term growth trend will continue. Our technology is becoming more and more recognized and we are currently expanding our distribution capabilities and offering products suited to the needs of our customers such as the new PowerTech series 5000 and NPK personalised series 3000 PicBuckets® set to be commercialized this fall. We believe we have the means, the business plan and execution strategy to continue to grow while providing some of the required efficiency gains amidst the current global infrastructure boom."

Forward looking statements disclaimer

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.

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.

 

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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 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

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