NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH DISCLOSES FINANCIAL RESULTS FOR Q2 2006

The Company equips itself with a pan-Canadian sales structure and significantly grows its sales prospect pipeline

Terrebonne (Quebec), May 26, 2006 – PowerTech Corporation Inc. “PowerTech” (TSX-V: PWB) today disclosed its financial results for the second quarter ended March 31, 2006.

During this period, the Company recorded operating revenues of $39,500, coming primarily from the sale of a PicBucket and its accessories to Roxboro Excavation. PowerTech did not record any revenue last year for the same quarter, which was exceptionally extended over a period of four months. For the first six months of 2006, the Company’s revenues totalled $139,640, whereas there were no revenues last year for the same two quarters (which covered an exceptional seven-month period).

PowerTech’s net loss was $654,001 or $0.02 per share on a diluted basis during the last quarter, compared to a net loss of $637,655 or $0.03 per share for the same period last year. For the first two quarters of the current fiscal year, the Company’s net loss was $1.048 million or $0.04 per share, compared to $880,168 or $0.04 per share for the same period last year.

The Company’s administrative expenses were $298,951 for the second quarter of 2006, compared to $461,168 for the corresponding quarter one year earlier. This difference is mainly explained by the administrative compensation cost associated with company stock options plan that were $37,749 this year, compared to $226,456 last year. Sales and marketing expenses were $270,372 in 2006, whereas they were $157,257 for the quarter ended March 31, 2005. This increase reflects PowerTech’s efforts invested into the implementation of its business development strategy, particularly in Canada with the recruitment of three new territory managers.

Furthermore, with respect to short-term assets, cash and cash-equivalents were $325,090 as at March 31, 2006, compared to $1,376,376 as at September 30, 2005. The decrease in cash is due to investments made by the Company in commercialization activities. On May 9, 2006, the Company announced a private financing of a minimum amount of $3.5 million and a maximum of $5 million. This financing is expected to be completed at the beginning of June 2006. In addition, PowerTech’s total assets were $1.96 million as at March 31, 2006, compared to $2.5 million as at September 30, 2005. In regard to liabilities, as at March 31, 2006, accounts payable and accrued liabilities were $359,944, whereas long-term debt was $1,545,000.

Strong foundations for the future

In recent months, PowerTech has made significant progress in laying the foundation on which the Company’s future growth can be built. “This essential preparatory work, aimed at accelerating our commercial expansion, is now almost completed. Among the progress accomplished during the last quarter, the most notable achievements were the formation of a strong Canadian sales team, the marked growth of our sales prospect pipeline, the move to a new facility capable of efficient, large-scale manufacturing of our product line, and the announcement of a new private financing,” said Mr. Carol Murray, President and Chief Executive Officer of PowerTech.

PowerTech has recently set up a sales structure comprising three divisions, each headed by a territory manager, that cover the whole Canadian territory. “Our directors will see to the business development of our activities through the application of four complementary approaches: development of a distribution network; implementation of V.I.PIC trial programs; setting up demonstrations at construction sites; and participation at targeted, renowned industry tradeshows,” underline Mr. Murray.

Significant growth in sales prospect pipeline

Over recent months, PowerTech has significantly grown its pipeline of potential sales. Now more than 30 entrepreneurs have participated in our V.I.PIC trial program and the number of prospects identified by the Company tripled during the last quarter. “We are confident that our various business development efforts will generate rapid growth in our revenues by the end of the fiscal year. Our move last March to a new facility located in the Haut Terrebonne industrial park has provided PowerTech with the production capacity required to adequately support this dynamic business development plan,” added Mr. Murray.

Furthermore, the Company is planning to commercialize a new version of the PicBucket 1000 Series soon, which will be targeted at the quickly growing mini-excavator market. In recent months, PowerTech also began trials on a new bucket with dual hydraulic cells which is targeted for more powerful excavators for work in extreme conditions.

“The major achievements accomplished since the beginning of the year 2006, and the favourable sales outlook ahead, enable us to look forward to PowerTech’s future with confidence and optimism,” said Mr. Murray.

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.

* 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:

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.com

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