SOURCE: Power Air Corporation

June 11, 2007 07:00 ET

Power Air Completes $5 Million Private Placement

LIVERMORE, CA--(Marketwire - June 11, 2007) - Power Air Corporation (OTCBB: PWAC) has raised $5 million through a private placement with Korean investors. The units issued include a $0.35 share and a $0.50 warrant. Investors include SOMO Petroleum Co., Ltd., a Korean-based Energy Company, and Jahong Hur, President, CEO and Founder of H-Plus Group. The investment was undertaken directly with Power Air Corporation.

"These funds will be utilized by the Company to move forward with its commercialization program," states Mr. Remy Kozak, President & CEO of Power Air. "As well, the links to strategic resources in Korea will help to accelerate our technology and product development efforts."

The investment follows successful demonstrations of Power Air's indoor generator powered by its Zinc Air Fuel Cell ("ZAFC") technology at both the Fuel Cell Expo 2007 in Tokyo in February and the Hydrogen and Fuel Cells 2007 International Conference and Trade Show in Vancouver in May.

H-Plus Group, through its H-Plus Eco subsidiary, has previously signed a Letter of Intent to partner with Power Air to commercialize the ZAFC technology in Asia. "We are committed to the commercialization of this technology for the Asian markets," states Mr. Jahong Hur, President, CEO, and Founder of the H-Plus Group Ltd. "We believe Power Air Corporation is a promising alternative energy company that has developed a very different and unique alternative to a practical technology. By investing in Power Air Corporation directly, we can also participate in the success of this revolutionary technology on a global level."

"SOMO Petroleum is excited to invest in Clean Energy technologies that reduce the carbon footprint," states Mr. Joon Soo Shin, Chairman of SOMO Petroleum Co., Ltd. "Power Air's core zinc air fuel cell technology has the potential to replace batteries and internal combustion engines as the power source for environmentally friendly products in a variety of applications."

About H-Plus Group

H-Plus Group is composed of four companies (H-Plus Eco Ltd., H-Plus Bio Ltd., H-Plus Clean Air World Ltd., and H-Plus Specialty Gas Supply Ltd.) whose main business is focused on the environment and alternative energy. H-Plus Group is aiming to be a total environment solution provider.

About H-Plus Eco Ltd.

H-Plus Eco Ltd. (part of the H-Plus Group of companies) was founded in November 2000 and is a leading company in environmental consulting, engineering and construction for contaminated soil and wastewater in Korea. H-Plus has an excellent business network with refineries, engineering companies and motor companies in Korea such as GS Caltex, GSE&C and Hyundai/Kia Motors. Recently H-Plus Eco has started business with Reliance and HPCL in India and FPC in Taiwan.

About SOMO Petroleum Co., Ltd.

SOMO Petroleum Co., Ltd., a subsidiary of SOMO Group, was founded in 1968. SOMO petroleum is a major partner with GS Caltex in sales and distribution of oil products and has an extensive nation-wide distribution channel, including gas stations and oil reservoirs. SOMO has been expanding its businesses to the other areas, including transportation of oil products.

About Fuel Cell Expo 2007

Fuel Cell Expo 2007 is endorsed by the US Fuel Cell Council, World Fuel Cell Council, Hydrogen and Fuel Cells Canada, Fuel Cell Europe, and several other fuel cell associations. Fuel Cell Expo 2006 presented 404 leading companies from over 14 regions and 23,039 visitors from countries worldwide.

About Hydrogen and Fuel Cells 2007 International Conference and Trade Show

Hydrogen & Fuel Cells 2007: International Conference and Trade Show from April 29 - May 2, 2007 in Vancouver, Canada highlights global activities and state-of-the-art hydrogen and fuel cell products, technologies and demonstrations. The latest scientific breakthroughs, commercial opportunities and policy developments from the world's prominent hydrogen and fuel cell experts are presented.

About Power Air Corporation

Power Air Corporation, with head office in Livermore, California, is engaged in the business of developing, manufacturing and marketing fuel cell-based commercial products. Power Air has the exclusive worldwide license to zinc-air fuel cell technology that has been developed at the Department of Energy's Lawrence Livermore National Laboratory, in Livermore, California, for all fields of use (portable, stationary, light mobility and transportation applications) and commercialization.

Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with Securities and Exchange Commission. THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. NO EXCHANGE, OVER-THE-COUNTER MARKET OR FEDERAL OR STATE SECURITIES ADMINISTRATOR HAS IN ANY WAY EITHER REVIEWED, APPROVED OR DISAPPROVED OF THE CONTENTS OF THIS NEWS RELEASE.

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