PowerTech Corporation Inc.
TSX VENTURE : PWB

PowerTech Corporation Inc.

August 22, 2007 08:00 ET

PowerTech Posts Financial Results for Q3 2007 Ended June 30, 2007

The company registers an increase in revenues of 47.9% for the first nine months of the current fiscal year

TERREBONNE, QUEBEC--(Marketwire - Aug. 22, 2007) - PowerTech Corporation Inc. "PowerTech" (TSX VENTURE:PWB) or the "Company" today disclosed its financial results for the third quarter of its current fiscal year ended June 30, 2007.

During this period, the Company recorded sales of $125,977, compared to $231,477 during the same quarter last year. For the first nine months of the current fiscal year, the Company recorded revenues of $548,566, whereas they were $370,937 for the corresponding period one year earlier representing a 47.9% increase.

"As part of our agreement reached last February with NPK Construction Equipment, NPK benefits from a three-year territorial exclusivity to market our products in the United States and South America under the NPK private brand. NPK Construction Equipment will have a series of PicBuckets in their name and in their colours integrating an NPK hydraulic cell specifically designed for this application. We are therefore anticipating a strong sales recovery beginning next October through this agreement. As announced in February, 2007, this strategic alliance with NPK will translate into annual sales of several hundreds of units for PowerTech. NPK is currently preparing its deployment plan featuring 74 distributors and over 300 points of sale," said Mr. Carol Murray, President and Chief Executive Officer of PowerTech.

PowerTech's net loss for the quarter ended June 30, 2007 was $660,495 or $0.02 per share, compared to $496,819 or $0.02 for the same period last year. For the first three quarters of the fiscal year, the net loss was $2.4 million or $0.07 per share, whereas it was $1.5 million or $0.06 per share one year earlier.

During the last quarter, PowerTech's administrative expenses were $295,463, compared to $274,831 for the same period in 2006. Meanwhile, sales and marketing expenses were $254,183, whereas they were $165,766 for the same period in 2006. For the first nine months of the fiscal year, administrative, sales and marketing expenses were $1.8 million, compared to $1.4 million for the same period one year earlier.

With respect to short-term assets, cash and cash-equivalents stood at $1.7 million as at June 30, 2007, compared to $1.3 million as at September 30, 2006. Last April, PowerTech completed a private financing that allowed the Company to raise $3.2 million. In addition, PowerTech's total assets were $3.8 million as at June 30, 2007, compared to $3.4 million as at September 30, 2006.

Short term liabilities as at June 30, 2007, were $366,955 compared to $400,444 as at September 30, 2006. Furthermore, the liability component of the convertible debentures issued by PowerTech were evaluated at $2.5 million at the end of the quarter, compared to an evaluation of $2.3 million at the end of the fiscal year. Finally, as at June 30, 2007, the long-term debt reached $69,076 whereas it was $475,569 last September 30. On April 17, 2007, the Company reimbursed two bills payable of $600,000 plus accumulated interest, for a total of $648,636.

New business development drivers

During the last quarter, PowerTech continued to implement new business drivers aimed at supporting the Company's development and enabling it to break into new market segments. These initiatives include the commercial launch of a new version of the PicBucket, 3000 Series, which is a multi-functional percussion bucket made for 8.5 to 16 ton excavators. Some months earlier, PowerTech also began commercializing the 1000 Series aimed at the mini-excavator market. "Along with the 2000 Series PicBucket, PowerTech's first commercialized product, these new 1000 and 3000 Series buckets will allow the Company to offer distributors a complete product line to satisfy a wider range of needs. By developing such innovative, distinctive and high-value added products for their clients, we are positioning ourselves as a valued and increasingly strategic partner of our distributors," said Mr. Murray.

Furthermore, the development program for a new version of the PicBucket, the 5000 Series, is progressing well. Over the coming winter, this new bucket model, designed for giant 20-30 ton excavators, will undergo a series of rigorous trials carried out in extreme conditions, particularly in hard, frozen soil. The 5000 Series bucket will enable PowerTech to target the world's largest market segment in the excavation sector.

"In the coming months, we will continue to set up our commercialization program, which notably involves the creation of new agreements with original equipment manufacturers (OEMs), such as that signed with NPK. In Canada, and in certain other regions of the world, we intend to pursue the development of our own distribution and commercialization network under the PicBucket brand by establishing new agreements with industry-leading partners. We remain confident that the promising initiatives already underway, combined with those that we will be rolling out in the coming months, will result in rapid sales growth by the end of 2007," said Mr. Murray.

About PowerTech (www.powertechci.com)

PowerTech is the only company in the world that manufactures and commercializes percussion technology with interchangeable tools and accessories for the construction, demolition, aluminum, mining, tunnelling, forestry and military industries. PowerTech's percussion technology, marketed under the PicBucket and PicHammer names, is a technological breakthrough that combines the power of a hydraulic hammer with the stripping force and manoeuvrability of a conventional bucket.

PowerTech is positioning itself as a leader in the development, integration and commercialization of leading edge technologies that allow for substantial improvements in excavation and demolition equipment performance, productivity and functionality.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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