NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH ANNOUNCES THE CLOSING OF A $1 MILLION PRIVATE FINANCING

Financing proceeds will enable the Company to pursue its commercialization activities

Terrebonne (Quebec), Friday, September 29, 2006 – Mr. Carol Murray, President and Chief Executive Officer of Power Tech Corporation Inc. "PowerTech" or "the Company" (TSX-V: PWB), announced today that the Company has closed a $1 million private financing with the FIER Cap Diamant, limited partnership.

This financing was realized through the issuance of a convertible debenture providing an annual interest rate of 11 % expiring September 29, 2011. The debenture is convertible at any time, at the option of FIER Cap Diamant, limited partnership, into units of the Company at an initial price of $0.70 per unit. The conversion price increases to $0.77 as of September 29, 2008, $0.847 as of September 29, 2009 and $0.932 as of September 29, 2010 as per the minimum provisions set out by the TSX Venture Exchange. Each unit comprises one PowerTech common share and one half of an equity warrant. Each warrant permits the holder to subscribe to one Power Tech common share at the same price mentioned above for the earlier date of 2 years following its issuance or September 29, 2011.

The first interest payment is due February 28, 2008 and successive payments are due every 6 months after that, with interest payable in cash or in PowerTech common shares, contingent on the approval of the TSX Venture Exchange, should the Company’s shares close above $1.20 for 20 consecutive days.

The Company can also force the conversion of the debenture after 24 months should the Company’s shares close above $1.40 for 20 consecutive days. The Company can reimburse the debenture as of September 29, 2009.

The Company will use the proceeds of this placement to pursue its business development opportunities and support its commercialisation efforts. Notably, the Company intends to continue the deployment of its North American distribution network. The money raised through this financing will also be used for the research and development of larger and smaller versions of the “PicBucket” and “PicHammer” as well as new products. The balance of proceeds will be used for general working capital purposes.

In addition to this placement, the Company has renegotiated the terms of the $400,000 loan obtained in June, 2006 with an original reimbursement date of November 30, 2006. The loan now comes due October 31, 2007 and remains reimbursable at any time at PowerTech’s option.

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.

About FIER Cap Diamant s.e.c.

The Regional Economic Intervention Fund (FIER) Cap-Diamant is a development fund designed to help companies obtain financing (equity or quasi-equity) at the start-up and development stages. The fund FIER Cap-Diamant is managed by a limited partnership and the sum of the amounts available for investments totals $15,000,000. The contribution of the government of Quebec to this fund is $10,000,000 and $5,000,000 $ comes from the private sector. The president of FIER Cap-Diamant s.e.c. is Mr Éric Dupont president of Aeterna Zentaris Inc.

* 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
ftremblay@hkdp.qc.com

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