PowerTech reports its third quarter results



    TERREBONNE, QC, Aug. 31 /CNW Telbec/ - PowerTech Corporation Inc.
("PowerTech") (TSX-V:PWB) reports revenues of $230,838 for its third quarter
ended June 30, 2009, compared to $542,005 for the same period last year. The
unaudited net loss for the quarter amounted to $417,369 ($0.01 per share)
compared to a loss of $563,663 ($0.02 per share) for the same period last
year.

    
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    Selected financial information

    For the three and nine month
     periods ended June 30(*)
                                                  ---------------------------
                                                        First nine months
                                                  ---------------------------
                         Q3 / 2009     Q3 / 2008          2009          2008
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    Revenues               230,838       542,005       780,002     1,019,091
    Net and
     comprehensive
     loss                 (417,369)     (563,663)   (1,198,596)   (1,688,261)
    Basic and diluted
     loss per share          (0.01)        (0.02)        (0.03)        (0.05)
    -------------------------------------------------------------------------
    (*)unaudited

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    Additional Highlights

    - Delivery of first units to the Middle-East, with a repeat order in the
      current quarter;

    - Delivery of first units to Montabert our European distributor which
      coincides with a marketing effort in several countries;

    - Re-negotiated our lease to reduce operating costs; and

    - Subsequent to quarter end, the Company closed a private placement for a
      gross amount of $648,250.

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    Mr. Carol Murray, President and Chief Executive Officer of PowerTech
stated: "During the last quarter we made progress in securing relationships
with key distributors both locally and abroad which will expand our
distribution network to reach new markets and territories. Despite very
challenging market conditions we were able to ship orders to these new markets
with great potential. We remain cautiously optimistic as we are well
relatively positioned while looking for additional ways to further lower our
costs "

    Nine-month period ended June 30, 2009

    In comparison with the first nine months of last year, revenues amounted
to $780,002 compared to $1,019,091 or a 23.5% decrease which is mostly
explained by an order from the Canadian military in the previous year.
    Gross margins for the nine-month period ended June 30, 2009 were 35.1%
compared to 23.3 % for the same period last year. The increase is mainly due
to change in accounting for indirect costs. The direct cost margins are
consistent year over year.
    Administrative expenses decreased 17.5% to $623,833 compared to $755,740
due to the reduction of operating expenses. Selling and commercialisation
expenses decreased 64% from $505,414 to $179,777 for the comparable period.
The reduction is due to the change in marketing strategy previously announced.
Development expenses decreased from $103,444 to $72,109 for the corresponding
period. Decrease is due to commercialization of our products rather than
development although there continues to be development work.

    Outlook

    The Company's continues to focus on the expansion of its distribution
network, including the successful deployment of the series 5000 PicBucket(R)
and the rollout of the Montabert agreement in Europe which will complement its
existing agreement in North America with NPK. The Company continues to closely
monitor its cash position and aims to maintain a capital structure that will
enable it to fulfill its business plan, including the commercialization of its
products. The Company has recently taken appropriate measure to significantly
reduce its cost structure and burn rate going forward. Additionally, the
financing realised after the end of the quarter provides sufficient
liquidities to address short-term operational challenges. However, the Company
is currently seeking additional financing or other opportunities aimed at
providing sufficient financial resources for an additional 12-24 months.

    Additional financial details about the quarter and nine-month period
    ended June 30, 2009

    The financial information in regards to the quarter and nine-month period
ended June 30, 2009 should be read in conjunction with the financial
statements and the interim management and discussion analysis dated August 31,
2009. These documents are available at www.sedar.com.

    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.

    
    "Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this 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

Organization Profile

POWERTECH CORPORATION INC.

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