NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH REPORTS ITS SECOND QUARTER RESULTS

Terrebonne (Quebec), May 28, 2009 – PowerTech Corporation Inc. ("PowerTech") (PWB on the TSX Venture Exchange) reports revenues of $126,105 for its second quarter ended March 31, 2009, which compares to revenues of $392,154 for the corresponding period last year. The unaudited net loss for the quarter amounted to $456,057 ($0.01 per share) which compares with a net loss of $553,088 ($0.01 per share) for the same period last year.

Selected financial information

For the three and six-month periods ended March 31*

			First six months
	Q2/2009	Q2/2008	2009	2008
Revenues	126,105	392,154	549,164	477,086
Net Loss	(456,057)	(553,088)	(781,227)	(1,124,598)
Basic and diluted loss per share	(0,01)	(0,01)	(0,02)	(0,03)
*unaudited

Additional highlights

• Year to-date-revenues increased by 15% when compared to the same period last year;
• Gross margins for the quarter improved to 24% of revenues compared to 16% for the same period last year and to 37% for the six-month period ended March 31, 2009 compared to 14% for the same period last year;
• First 5 unit orders received from its Middle-East distributor; delivery was made in the third quarter of FY2009. Many additional orders from this distributor are expected in the short term also for delivery to Saudi Arabia where major infrastructure projects are being undertaken;
• First formal orders also for 5 units were received from Montabert and deliveries are scheduled in the third quarter of the current fiscal year; and
• Aggressive restructuring and excellent performance on overall costs control resulted in a reduction of quarterly and year-to-date net losses as well as the company’s burn rate which also suits current economic conditions;

Mr. Carol Murray, President and Chief Executive Officer of PowerTech stated: "Despite very challenging market conditions translating into revenue volatility, we consider being well positioned and remain optimistic but cautious as we continue to control operating costs as well as being ready for the anticipated boom in infrastructure spending locally and around the world. “

Six-month period ended March 31, 2009

In comparison with the first six months of last year, revenues amounted to $549,164 compared to $477,086 or a 15.1% increase. Gross margins for the six-month period ended March 31, 2009 were 36.9 % compared to 14.4 % for the same period last year and mainly reflect higher revenues and a decrease in manufacturing costs.

Administrative expenses decreased 17% to $412,183 compared to $496,889 which is mostly explained by a reduction of overhead costs. Selling and commercialisation expenses decreased 63% from $331,395 for the six-month period ended March 31, 2008 to $122,671 for the comparable period of 2009. Development expenses increased the six-month period ended March 31, 2009 amounting to $51,490 compared with $35,180 for the corresponding period last year.

Outlook

The Company’s continues to focus on the expansion of its distribution network, including the successful deployment of the series 5000 PicBucket® and the rollout of the Montabert agreement in Europe which will complement its existing agreement in NorthAmerica with NPK. The Company continues to closely monitor its cash position and to maintain a capital structure that will enable it to fulfill its business plan, including the commercialisation of its products. The Company is currently exploring financing opportunities aiming to provide sufficient financial resources for an additional 12-24 months.

Additional financial details about the quarter and six-month period ended March 31, 2009

The financial information in regards to the quarter and six-month period ended March 31, 2009 should be read in conjunction with the financial statements and the interim management and discussion analysis dated March 31, 2009. These documents are available at www.sedar.com.

Grant of options to Management and Board of Directors members

Today, the Board of directors of PowerTech granted to members of management 160,000 share purchase options in compensation for previous salary reductions. The strike price of these options was set at $0.12 representing the closing price of the company’s common shares on the TSX Venture Exchange on May 28, 2009. The expiry date of these options is in five years, on May 29, 2014. 20% of these options can be exercised after the first year and 10% for each of the following quarters after the first year.

Additionally, 125,000 share purchase options were granted to members of the Board of Directors at the same strike price. These options vest equally over the next four quarters.

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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