SOURCE: Power Efficiency Corporation

August 23, 2006 08:30 ET

Power Efficiency Corporation Announces Dean Finkenberg Hired as VP of Business Development

Experienced Executive to Lead Company's Development of Strategic Marketing Relationships

LAS VEGAS, NV -- (MARKET WIRE) -- August 23, 2006 -- Power Efficiency Corporation (OTCBB: PEFF), a developer and manufacturer of advanced energy savings technologies for electric motors, today announced that Dean Finkenberg has joined the Company as its Vice President of Business Development. Mr. Finkenberg will be responsible for developing strategic marketing relationships, building sales distribution channels, negotiating licensing agreements, and developing further relationships with original equipment manufacturers.

Mr. Finkenberg has been in senior executive leadership positions in numerous companies, ranging from ground-level start ups to businesses with over $500 million in annual revenues. He was most recently Executive Vice President at MIDA Industries, a commercial and residential environmental remediation and general contracting company. Prior to MIDA, he was co-owner and CEO of SHH-H2, a division of Sherlock Healthy Homes, one of the largest environmental inspection companies in southern California. Prior to that he was the Senior Vice President of Sales and Marketing for 3E Company, a business process outsourcing software company with $18 million in revenue that is the nation's leader in chemical compliance information management. Mr. Finkenberg was also the Regional Vice President for the Western Division of Metrocall Wireless. With over 6.2 million subscribers and $550 million in revenue, Metrocall was the nation's second largest wireless data and messaging company. As Regional Vice President, Mr. Finkenberg was responsible for a P&L with over $95 million in revenue and 300 employees. Prior to Metrocall, Mr. Finkenberg held various positions, including President of the Western Division and President of the Southwest Division, at Pagenet, where he directed 600 employees and over $60 million in revenue. During Mr. Finkenberg's tenure at Pagenet, it grew to be the largest and fastest growing provider of wireless communication in the U.S., with over $225 million in revenue. Mr. Finkenberg earned a Bachelors of Science in Business Management from San Diego State University.

"We are extremely pleased to have Dean Finkenberg join us as the VP of Business Development," said Steven Strasser, the Company's Chairman and CEO. "He brings a wealth of experience leading business development activities to grow companies from small to medium size. Our next generation products, which we are presently developing, will allow numerous new revenue streams for the Company, such as licensing agreements and strategic agreements with original equipment manufacturers. Dean will be the focal point for establishing and growing many of these distribution channels."

"With the combination of rising energy prices and heightened environmental concerns, I see outstanding growth potential for Power Efficiency's technologies and products," Finkenberg said. "I am very pleased to be joining this Company at such an exciting time in its development and look forward to growing the Company's business like other technology companies with which I have been involved."

About Power Efficiency Corporation

Power Efficiency Corporation develops and markets advanced energy saving technologies for electric motors. The Company's first product, called the Power Genius™, reduces the amount of energy used by electric motors in applications such as many escalators, elevators, grinders, granulators, mixers, saws, stamping presses. 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 the Company's products are typically 20-40% in appropriate applications. 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.

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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.