NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH REPORTS SIGNIFICANTLY HIGHER REVENUES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008

Terrebonne (Quebec), January 12, 2009 – For the fisca1 year ended September 30, 2008, PowerTech Corporation Inc. «PowerTech» (PWB : TSX.V) reports revenues of $1,455,279, a 132% increase over the same period last year. The unaudited net loss for the year amounts to $3,066,528 ($0.08 per share) compared to a net loss of $3,790,519 ($0.12 per share) for the same period in 2007.

For the fourth quarter of the fiscal year, ended September 30, 2008, PowerTech’s revenues amount to $436,188 which compares to revenues of $77,254 for the same period last year. The net loss for the quarter amounts to $1,378,267 ($0.03 per share) which compares to a net loss of $1,351,685 ($0.03 per share) for the corresponding quarter of last year. Net loss for the fourth quarter of the 2008 fiscal year included non-cash write-off and provision relating to obsolete or demonstration units for a gross amount of $625,000 (amount partially included in sales and marketing expenses) which compares to a gross amount of $735,000 (included in sales and marketing expenses) of for the corresponding quarter of last year.

Selected financial information

For the three month and fiscal year ended September 30,

	Q4/2008*	Q4/2007*	2008	2007
Revenues	436,188	77,254	1,455,279	625,820
Net Loss	(1,378,267)	(1,351,685)	(3,066,528)	(3,790,519)
Basic and diluted loss per share	(0,03)	(0,03)	(0,08)	(0,12)
*unaudited

Additional highlights

• Significant increase in yearly revenues largely explained by:
  • Continued deliveries in regards to the OEM agreement with NPK Construction Equipment covering the United States, Mexico and Latin America;
  • A significant breakthrough in the military industry through the sale of five series 3000 military-ready PicBucket® units of the to the Canadian Armed Forces which at the end of the fiscal year still held an option to purchase 15 additional units representing a potential of close to $1 M in sales.
• Gross margins for the fiscal year ended September 30, 2008, represented 32.4% of revenues compared to 10.0% of revenues for the period ended September 30, 2007.
  • A 275% increase in the number of units sold, from 20 in 2007 to 75 in 2008 allowed to negotiate better supply terms and also contributed to better amortization of fixed costs.
• PowerTech completed during the fourth quarter, a private placement financing for a gross amount of $890 000 which allowed accelerating the roll-out of the series 5000 PicBucket®.
  • This series targets one of the largest potential markets and is attracting very positive preliminary interest from buyers

Commenting on the accomplishments of the fiscal year ended September 30, 2008, Mr. Carol Murray, President and Chief Executive Officer of PowerTech stated: "We are pleased with the evolution of our business over the course of the last fiscal year as we continued to make strong progress with our existing customers through our OEM strategy and placed ourselves in an enviable position for the future. Through a series of measures taken at year end, we were also able to streamline our operations and to significantly reduce operating expenses and cash required to fund our future operations. More so, this was achieved without impacting our current business or growth prospects. With the proof of concept phase of our development now behind us, we now look forward to an acceleration of our sales and to additional agreements with established partners whom will support our worldwide development efforts".

Additional financial details about the Fiscal year ended September 30, 2008

Additional financial details in regards to the fiscal year ended September 30, 2008 are available in the financial statements and in the Management’s Discussion and Analysis which can be found at www.sedar.com.

Outlook

Mr. Carol Murray added: "Despite the current economic uncertainty, we remain confident that major infrastructure work will prove to be a significant element of recovery in many industrialized countries and that such a context will capture the attention of entrepreneurs interested by modern methods allowing increasing productivity and return on investment. We also believe that the sector’s anticipated growth rates currently create a favourable environment to seek out financial partners who could allow accelerating our business plan, which includes the negotiation of new OEM agreements and the direct parallel development of niche markets such as the military.

The restructuring initiated at the end of our fiscal year, our current financial resources coupled with tight operational management will allow the long-awaited rollout of the new the series 5000 PicBucket® which is garnering significant interest in the market. We believe that the rollout of this series in conjunction with its achievements on construction sites will definitely establish PicBucket® as the ultimate for infrastructure work. We believe, amongst others, that this rollout along with other successful business opportunities will allow for a steady increase of our order book as well as more predictable revenue growth."

Interest conversion and grant of options

PowerTech confirms the conversion into common shares of an amount of $71,164 of accrued interest to September 29, 2008 in regards to debt held by «Le Fier Cap Diamant, Société en commandite». The payment translates into the issuance of 295,133 shares.

Also, the board of directors issued, pursuant to the terms and conditions of the company’s Stock Option Plan, 400,000 stock options to management to compensate for temporary salary concessions. The options will be exercisable over a five year period at $0.20 per share.

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..

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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
PowerTech Corporation Inc.
Tel.: 450 963-6400 ext. 101
Fax: 450 963-4411
E-mail: carol.murray@powertechci.com

Investor relations:
Mr. Marc Jasmin CMA
Partner
Jasmin-Dumais Financial Communications Inc.
Phone: 514 231-2360
Fax: 514 221-3762
E-mail: marc@comjamais.com

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