SOURCE: Power Efficiency Corp.

October 26, 2006 16:38 ET

KONE Inc. and Power Efficiency Corporation Announce the Use of the EcoStart™ in KONE's EcoMod™ Solution

KONE's EcoMod™ Modernization Program Offers Its Customers an Integrated Solution to Make Escalators More Energy Efficient With EcoStart™

LAS VEGAS, NV -- (MARKET WIRE) -- October 26, 2006 --Power Efficiency Corporation (OTCBB: PEFF), a developer and manufacturer of advanced energy savings technologies for electric motors, and KONE Inc., one of the world's leading elevator and escalator manufacturers and service providers, announced today the success and potential for future implementation of EcoStart in the EcoMod™ Escalator Modernization solution at various facilities throughout North America.

EcoMod™ is KONE's unique solution for modernizing aging escalator equipment and improving equipment efficiency. The EcoMod™ escalator modernization solution is unique to the industry by providing a complete new escalator without the construction.

An energy savings option of the EcoMod™ product offering is the EcoStart™, which is manufactured by Power Efficiency exclusively for KONE. The EcoStart™ soft starts an electric motor, bringing it from rest to full speed. Once it is at full speed, the EcoStart™ monitors the motor and improves its efficiency when it is wasting energy. By conserving energy, the EcoStart™ also reduces greenhouse gas emissions.

"These products offer an integrated solution for our customers who are looking to modernize their existing escalator equipment and reduce energy costs," said Brad Fleming, Assistant Vice President of Modernization at KONE. "EcoMod™ is a program derived from careful consideration of the heightened environmental and economic importance of saving energy. KONE is proud to offer such a solution that allows its clients the benefit of saving energy and cutting costs. We have already installed the EcoStart™ in a number of installations, such as airports, shopping centers and department stores, and are actively proposing it to many of our customers."

Steven Strasser, Chairman and CEO of Power Efficiency Corporation, said, "With utility rates rising steadily and companies and organizations everywhere more concerned about their impact on the environment, it just makes good sense to reduce energy consumption with the EcoStart™. Power Efficiency is proud to work closely with KONE to provide its customers with technologies to reduce energy expenses and preserve the environment."

About KONE Inc.

KONE Elevators & Escalators moves people and goods in reliable, innovative, dedicated and responsible ways that add sustainable value to our customers' business and end-users' lives. In the elevator and escalator industry, KONE is known worldwide as a service company and technology leader with the most innovative products and services. KONE sells, manufactures, installs, services and modernizes elevators and escalators and services automatic building doors. KONE is the world's fourth largest elevator and escalator company. KONE operates some 800 service centers in more than 50 countries and delivers approximately 30,000 new elevators and escalators annually. Its service base consists of 575,000 elevators and escalators and more than 290,000 automatic building doors. KONE is part of KONE Corporation, which was founded in Finland in 1910. KONE Corporation's class B shares have been quoted on the Helsinki Exchanges since 1967.

About Power Efficiency Corporation

Power Efficiency Corporation designs and manufactures the Power Genius™, a product that reduces the amount of energy used by electric motors in many constant speed/variable load applications. These motors are found in escalators, elevators, grinders, granulators, mixers, saw mills and many other applications. The Power Genius™ allocates power in direct proportion to the motor's required workload, eliminating wasted electricity. The company's core technology is based on patented improvements to NASA technology. Energy savings from these controllers are typically 20-40%. The controllers also reduce the operating heat of the motor, producing significant motor life extension and downtime reduction benefits. PEC products are UL compliant and CE and CSA certified.

For more information visit www.powerefficiencycorp.com.

As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's product in the market; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; and all the risks and related information described from time to time in the Company's SEC filings, including the financial statements and related information contained in the Company's 2005 Annual Report. Power Efficiency assumes no obligation to update the information in this release.

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