PowerTech Corporation Inc.
TSX VENTURE : PWB

PowerTech Corporation Inc.

February 27, 2008 08:00 ET

PowerTech Posts Financial Results for the Quarter Ended December 31, 2007

The Company focuses on revenue growth

TERREBONNE, QUEBEC--(Marketwire - Feb. 27, 2008) - PowerTech Corporation Inc. "PowerTech" (TSX-VENTURE:PWB) today disclosed its financial results for the first quarter of the current fiscal year, ended December 31, 2007.

During this period, the Company generated sales of $84,932, compared to $35,938 during the same quarter last year. PowerTech's net loss for the quarter ended December 31, 2007 was $571,510 or $0.02 per share, compared to $810,398 or $0.03 for the same period last year. This decrease in the net loss is mainly explained by significantly lower corporate expenses, in particular with regard to sales and marketing. Moreover, with respect to revenues, PowerTech anticipates sustained sales growth during the coming quarters via its partnership agreement with NPK Construction Equipment. As of January 10, 2008, orders received by the Company since the beginning of the current fiscal year totalled more than $1.25 million.

During the last quarter, PowerTech's administration expenses were $255,401, compared to $282,683 for the same period in 2006. Marketing expenses were $158,271, for the quarter ended December 31, 2007, whereas they were $298,517 for the same quarter in 2006. These lower expenses resulted from an adjustment of strategy due to the agreement made with NPK, which provides NPK with exclusivity to market PowerTech's products in the North American and South American regions. Due to this agreement, PowerTech has been able to lighten its own sales structure for the regions now served by NPK.

Financial situation

Cash and cash equivalents were $566,596 at December 31, 2007, compared to $1,3 million as at September 30, 2007. PowerTech's total assets were $2.2 million as at December 31, 2007, compared to $2.8 million as at September 30, 2007. Meanwhile, short-term liabilities were $532,832 as at December 31 compared to $631,587 at September 30, 2007. The liability component of convertible debentures was $2.4 million at the end of the quarter, compared to $2.7 million three months earlier. The long term debt was $69,653 as at December 31, 2007, which was almost unchanged compared to the amount on September 30, 2007.

Solid commercial foundations

During the last month PowerTech has significantly strengthened its commercial foundations through the formation of new strategic alliances, notably by concluding a manufacturing and marketing agreement with a world-class original equipment manufacturer (OEM) at the beginning of February 2008. For PowerTech, this is the second major strategic agreement. The first was signed with NPK Construction Equipment in February 2007. The latest OEM agreement formed by PowerTech provides the Company with access to vast markets in Europe, the Middle East, Africa, Australia and New Zealand.

"Our agreement with NPK Construction Equipment, which covers the regions of the United States, Mexico and Latin America, is now beginning to bear fruit commercially. The initial months of the agreement were primarily dedicated to integrating NPK's technology into PowerTech's percussion buckets. Now that this step is complete, the partnership is expected to begin generating sustained revenues for PowerTech over the coming quarters with the wide-scale marketing, under NPK's colours and brand name, of our 2000 and 3000 Series percussion bucket," said Mr. Carol Murray, PowerTech's President and Chief Executive Officer.

NPK, which has a network of 74 distributors in the United States alone and a total of more than 300 branches, will also gradually undertake the commercialization of other PowerTech percussion bucket series, the 1000, 4000 and 5000 Series, over the coming quarters.

Commercial expansion

With the goal of continuing its commercial expansion in Canada, PowerTech signed commercial agreements at the beginning of the first quarter with two players who are solidly established in their respective markets in Ontario. They are Creighton Rock and Drill and Champion Road Machinery Sales. Thanks to the various partnerships formed between the Company and dominant players in the Canadian construction industry at the beginning of the first quarter, PowerTech is now backed by a network of more than 100 points of sales across the country that will market its products.

"We begin the year 2008, and the second quarter of our fiscal year, with a great deal of confidence and optimism. With the anticipated growth in our revenues, we should start to harvest the fruits of our efforts in the coming quarters. This would provide a new source of motivation to firmly maintain our focus on our development and growth objectives," concluded 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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