NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH ANNOUNCES THE CLOSING OF
AN $890,000 PRIVATE PLACEMENT

Terrebonne (Quebec), July 16, 2008 – Power Tech Corporation Inc. (“PowerTech or the Company”) (TSX-V: PWB) is pleased to announce the completion of its previously announced non-brokered private placement (the "Placement "), as of last July 14, for gross proceeds of $890,000.

2,225,000 units (the "Units") were issued as part of this placement. Each Unit priced at $0.40 per unit is comprised of one common share of the Company and one common share purchase warrant. Each warrant will entitle the holder to acquire, at any time within 24 months from the date of closing of the private placement one additional common share of the Company at an exercise price of $0.50. A total of 2,225,000 shares and 2,225,000 warrants were issued to investors under this Placement.

Proceeds from the Placement will be used by PowerTech to pursue the implementation of its business plan, specifically the roll-out of its private label OEM agreements with world-class manufacturers and the potential signing of other similar deals. This financing will also allow for the launch of the new series 5000 PicBucket®, which will cater to the needs of one of the largest identified end-markets, namely carriers within the 20 to 30 tons range.

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.

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.

 

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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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