SOURCE: Power Efficiency Corp.

July 31, 2006 09:00 ET

Power Efficiency Corporation Joins Leading Motor, Motor Drive and Appliance Manufacturers in Prestigious Motor and Electronics Research Consortium

Wisconsin Electric Machines and Power Electronics Consortium (WEMPEC) Leaders Praise Power Efficiency Focus in Technical Review

LAS VEGAS, NV -- (MARKET WIRE) -- July 31, 2006 --Power Efficiency Corporation (OTCBB: PEFF), a developer and manufacturer of advanced energy savings technologies for electric motors, today announced it has joined a leading national consortium for the advancement of power electronics, including advanced motor and motor drive technologies.

The Company's technology, which improves the efficiency of constant speed motors when they are significantly under-loaded and inefficient, was reviewed by a team of professors at WEMPEC. "Power Efficiency Corporation's technology improves the efficiency of electric motor drives," said Professor Robert D. Lorenz, Co-Director of WEMPEC. "This technology has the potential to make a significant impact on energy consumption by electric motors in many applications."

"We are proud to become part of this important consortium of leading motor technology and electronics companies," said Steven Strasser, the Company's Chairman and CEO. "We look forward to working with WEMPEC for the advancement of energy-savings technologies for motors."

WEMPEC's vision is to perform pre-competitive research and university education serving the lifelong needs of a worldwide network of engineers who are active in all facets of power electronics and electromechanical power conversion and their applications. WEMPEC was initiated at the University of Wisconsin-Madison in January 1981, in the wake of the dramatic energy price increases in the late 1970s. Other members of the consortium include leading national and international motor equipment manufacturers, industrial concerns, appliance manufacturers, and research labs.

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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%, but can be as high as 45%. The controllers also reduce the operating heat of the motor, enabling significant motor life extension and downtime reduction benefits. PEC products are UL compliant and CE and CSA certified. The Company also has a prototype unit applicable to single-phase electric motors that are found in applications such as clothes dryers, refrigerators, vending machines, mixers and coffee grinders.

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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.