NEWSCENTER

PRESS RELEASE:

POWER TECH CORPORATION INC.

POWERTECH SIGNS A LETTER OF INTENT TO PURCHASE AN INDUSTRIAL PARTS MANUFACTURING COMPANY

If all conditions are met, the transaction will add about $8 million in revenues and operational synergies

Terrebonne (Quebec), Ocotber 6, 2009 – PowerTech Corporation Inc. «Powertech» (PWB:TSX-V) or the «Company» announces that on October 2, 2009, it signed a letter of intent to acquire all issued and outstanding shares of a North-American company (the «Target») which supplies wear parts for construction, agricultural and other industries. Given the nature of the proposed transaction, the name of the Target will only be announced at closing.

The transaction is conditional to 1) obtaining appropriate financing 2) approval from competent regulatory authorities and 3) satisfactory due diligence in regards to legal, accounting, financial, technological and environmental matters as well as other preliminary conditions.

The offered price is $3,800,000, of which $3,300,000 will be payable at the closing date and $500,000 as holdback to cover closing adjustments, representation and warranty. Additionally, Powertech will issue 1,500,000 common shares at closing and the equivalent of $200,000 of common shares depending on the performance of the Target during the three fiscal years following the transaction.

For its fiscal year ended on April 30, 2009, the Target generated revenues of about $9 million as well as earnings before interest, taxes, depreciation, and amortization («EBITDA») of $1,4 million before corporate charges.

Disclaimer in regards to forward-Looking Statements

Certain statements included herein, including those that express management’s expectations or estimates of the future performance of the Company, 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 Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) 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.

 

-30-

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

Back