PowerTech reports a significant increase in revenues in the third quarter



    TERREBONNE, QC, Aug. 27 /CNW Telbec/ - PowerTech Corporation Inc.
("PowerTech") (PWB on the TSX venture exchange) reports revenues of $542,005
for its third quarter ended June 30, 2008, a 330% increase over the same
period last year. The net loss for the quarter amounted to $563,663 ($0.02 per
share) which compares with a net loss of $686,573 ($0.02 per share) for the
same period in 2007.

    
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    Financial Highlights

    Selected Financial Information
    For the three month
     and nine-month periods
     ended June 30,
    ---------------------------------------------   -------------------------
                           Q3/2008       Q3/2007      YTD/2008      YTD/2007
                          -----------------------   -------------------------
    Revenues               542,005       125,977     1,019,091       548,566
    Net Loss              (563,663)     (686,573)   (1,688,261)   (2,448,062)
    Basic and diluted
     loss per share          (0.02)        (0.02)        (0.05)        (0.08)

    Cash flows used for
     operating activities (256,763)     (574,684)   (1,255,194)   (1,711,208)
    ---------------------------------------------   -------------------------

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    Additional highlights

    - Significant increase in quarterly revenues compared to last year
      largely explained by:
      - The delivery of five PicBucket(R) units to the Canadian Armed Forces
        which also allowed to obtain accredited vendor status from NATO
        (North Atlantic Treaty Organization);
      - Continued deliveries in regards to the OEM agreement with NPK
        Construction Equipment covering the United States, Mexico and Latin
        America

    - Continuous expansion of a worldwide sales and distribution network:
      - Access to 22 additional dealerships in Canada through partnerships
        with Hewitt Equipment and Atlantic Tractors & Equipment Ltd

    - Following the first sales of the NPK personalized series 2000
      PicBucket(R), Powertech is set to expand its product offering with the
      launch of the NPK personalised series 3000 and the Powertech series
      5000 in the fourth quarter.

    - Subsequent to the end of the quarter, strengthening of PowerTech's
      balance sheet through the completion of a private placement financing
      for a gross amount of  $890 000.
    

    Commenting on the quarterly results, Mr. Carol Murray, President and
Chief Executive Officer stated: "We are satisfied with the evolution of our
business in the third quarter. Confronted in the past with the longer than
expected technical integration of our technology to the NPK Construction
Equipment product line, we were able to work closely with this customer, to
adapt the product to his specific needs and to finally start accelerating our
sales.
    More so, we were able to increase our direct sales, obtaining an
important first order from the Canadian military and by the same token, NATO
certification. Considering, these valuable milestones, the ongoing reduction
of our operating expenses, the expansion of our sales and distribution network
and the increased market recognition of our technology's competitive
advantages, we are well positioned to continue on this path of increased sales
and operating cash flows to the benefit of all stakeholders."

    Three-month period ended June 30, 2008

    In comparison with the third quarter of last year, revenues for the third
quarter of 2008 increased 330% to $542,005 compared to $125,977 in the third
quarter of 2007. Revenues increased due the continued growth of sales through
distributors, the acceleration of deliveries to NPK Construction Equipment and
delivery on the Canadian Army contract in the quarter.
    Gross margins for the third quarter of 2008 were 31.1% compared to 13.0 %
in the third quarter of 2007 and mainly reflect increased production
efficiencies and the impact of higher margin direct sales. Administrative
expenses increased slightly which is mostly explained by an increase in
non-cash stock-based compensation expenses. Selling and commercialisation
expenses decreased 32% from $254,183 in the third quarter of 2007 to $174,019
in the third quarter of 2008 reflecting the Company's change in weighting
between direct sales and sales through a network of dealers. Development
expenses amounted to $68,264 in the third quarter of 2008 compared to $25,742
in the third quarter of 2007 mostly reflecting increased development expenses
related to the Series 5000 PicBucket(R). The series 5000 PicBucket(R) aims to
equip large 20 to 30 tons excavators and represents one of the most
significant market segments targeted by PowerTech. Initial sales of this
product line are expected to begin in the fall of 2008.

    Nine-month period ended June 30, 2008

    In comparison with the first nine months of last year, revenues increased
86% amounting to $1,019,091 compared to $548,566 for the first nine months of
2007. Revenues increased over last year due the continued growth of sales
through distributors, the acceleration of deliveries to NPK and delivery on
the Canadian Army contract in the third quarter of 2008.
    Gross margins for the first nine months of 2008 were 23.3% compared to
18.7 % for the first nine months of 2007 and mainly reflect increased
production efficiencies and the impact of higher margin direct sales.
Administrative expenses decreased 12% to $838,438 compared to $954,266 and are
explained by a reduction of overhead costs. Selling and commercialisation
expenses decreased 43% from $884,103 for the first nine months of 2007 to
$505,414 for the first nine months of 2008 reflecting the Company's ongoing
transition from direct sales to sales through dealer networks. Development
expenses increased for the first nine months of 2008 amounting to $103,444
compared with $25 742 for the first nine months of 2007.

    Outlook

    Mr. Carol Murray, President and Chief Executive Officer added: "We are
comfortable that our long term growth trend will continue. Our technology is
becoming more and more recognized and we are currently expanding our
distribution capabilities and offering products suited to the needs of our
customers such as the new PowerTech series 5000 and NPK personalised series
3000 PicBuckets(R) set to be commercialized this fall. We believe we have the
means, the business plan and execution strategy to continue to grow while
providing some of the required efficiency gains amidst the current global
infrastructure boom."

    Forward looking statements disclaimer

    Certain statements included herein, including those that express
management's expectations or estimates of our future performance, constitute
"forward-looking statements" within the meaning of applicable securities laws.
Forward-looking statements are necessarily based upon a number of estimates
and assumptions that, while considered reasonable by management at this time,
are inherently subject to significant business, economic and competitive
uncertainties and contingencies. Investors are cautioned not to put undue
reliance on forward-looking statements. We disclaim any intent or obligation
to update publicly these forward looking statements, whether as a result of
new information, future events or otherwise.

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

    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 and military industries.
    PowerTech's percussion technology is a technological breakthrough that
combines the power of a hydraulic hammer with the stripping force and
manoeuvrability of a conventional bucket. Powertech's products are marketed
under the PicBucket(R) and PicHammer(R) names as well as under world renowned
private label brands thru OEM agreements with large manufacturers.

    The trademarks PicBucket(R), PicHammer(R) and the Powertech logo are
    registered trademarks of PowerTech Canada Inc.
    %SEDAR: 00020841EF




For further information:

For further information: Mr. Carol Murray, President and Chief Executive
Officer, PowerTech Corporation Inc., (450) 963-6400 #101, Fax: (450) 963-4411,
carol.murray@powertechci.com; Investor Relations: Mr. Marc Jasmin, President
Jasmin Financial Communications Inc., (450) 963-6400 ext: 202, Cell: (514)
231-2360, marc.jasmin@powertechci.com

Organization Profile

POWERTECH CORPORATION INC.

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