SOURCE: Power Efficiency Corporation

October 11, 2006 08:30 ET

Power Efficiency Corporation Announces Three Well Known Las Vegas Casinos Purchase Energy Savings Technology for Escalators and Elevators

Initiative Targeting Hospitality and Gaming Industry Results in Initial Sales; Additional Sales Expected to Hospitality and Gaming Companies

LAS VEGAS, NV -- (MARKET WIRE) -- October 11, 2006 -- Power Efficiency Corporation (OTCBB: PEFF), a developer and manufacturer of advanced energy savings technologies for electric motors, today announced it closed initial sales of the Power Genius™ energy saving technology to three prominent Las Vegas casinos.

"We believe these initial sales to three casinos, which are owned by different national casino groups, are the beginning of a broader adoption of our technology by the gaming and hospitality industry," said Steven Strasser, Power Efficiency's Chairman and CEO. "These sales follow previously announced tests at these three facilities. The tests, which were verified by the local utility, confirmed the Power Genius™ saved 28% to 40% of the electricity used electric motors in multiple escalators and an elevator."

"We now have installations at a number of the major gaming and casino companies based in Las Vegas," continued Strasser. "Several of these national companies are considering purchasing our technology for use in many of their facilities and we are optimistic that we will have additional sales to these companies in the coming months."

The Power Genius™ soft starts an electric motor, bringing it from rest to full speed. Once it is at full speed, the Power Genius™ monitors the motor and improves its efficiency when it is lightly loaded and wasting energy. By conserving energy, the Power Genius™ also reduces greenhouse gas emissions. Electric motors consume almost one quarter of the electricity produced in the United States.

In addition to the gaming and hospitality industry, the Company is targeting other major owners of escalators, including transit systems, airports and owners of shopping centers. Besides escalator applications, the Company is also pursuing sales on industrial equipment, such as stamping presses, granulators, mixers, grinders, saws, injection molding machines, conveyors, crushers and more.

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.