PowerTech reports significantly higher revenues for the fiscal year ended September 30, 2008



    TERREBONNE, QC, Jan. 12 /CNW Telbec/ - For the fisca1 year ended
September 30, 2008, PowerTech Corporation Inc. "PowerTech" (PWB : TSX.V)
reports revenues of $1,455,279, a 132% increase over the same period last
year. The unaudited net loss for the year amounts to $ 3,066,528 ($0.08 per
share) compared to a net loss of $3,790,519 ($0.12 per share) for the same
period in 2007.
    For the fourth quarter of the fiscal year, ended September 30, 2008,
PowerTech's revenues amount to $436,188 which compares to revenues of $77,254
for the same period last year. The net loss for the quarter amounts to
$1,378,267 ($0.03 per share) which compares to a net loss of $1,351,685 ($0.03
per share) for the corresponding quarter of last year. The net loss for the
fourth quarter of the 2008 fiscal year included non-cash write-off and
provision relating to obsolete or demonstration units for a gross amount of
$625,000 (amount partially included in sales and marketing expenses) which
compares to a gross amount of $735,000 (included in sales and marketing
expenses) of for the corresponding quarter of last year.

    
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    Selected financial information

    For the three month and fiscal year ended September 30,

                        -----------------------------------------------------
                            Q4/2008(*)   Q4/2007(*)        2008         2007
    -------------------------------------------------------------------------
    Revenues                436,188       77,254      1,455,279      625,820
    Net Loss             (1,378,267)  (1,351,685)    (3,066,528)  (3,790,519)
    Basic and diluted
     loss per share           (0.03)       (0.03)         (0.08)       (0.12)
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    (*)unaudited
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Additional Highlights

    - Significant increase in yearly revenues largely explained by:

         - Continued deliveries in regards to the OEM agreement with NPK
           Construction Equipment covering the United States, Mexico and
           Latin America.
         - A significant breakthrough in the military industry through the
           sale of five series 3000 military-ready PicBucket(R) units of the
           to the Canadian Armed Forces which at the end of the fiscal year
           still held an option to purchase 15 additional units representing
           a potential of close to $1 M in sales.

    - Gross margins for the fiscal year ended September 30, 2008, represented
      32.4% of revenues compared to 10.0% of revenues for the period ended
      September 30, 2007.

         - A 275% increase in the number of units sold, from 20 in 2007 to 75
           in 2008 allowed to negotiate better supply terms and also
           contributed to better amortization of fixed costs.

    - PowerTech completed during the fourth quarter, a private placement
      financing for a gross amount of $890 000 which allowed accelerating the
      roll-out of the series 5000 PicBucket(R).

         - This series targets one of the largest potential markets and is
           attracting very positive preliminary interest from buyers.
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    Commenting on the accomplishments of the fiscal year ended September 30,
2008, Mr. Carol Murray, President and Chief Executive Officer of PowerTech
stated: "We are pleased with the evolution of our business over the course of
the last fiscal year as we continued to make strong progress with our existing
customers through our OEM strategy and placed ourselves in an enviable
position for the future. Through a series of measures taken at year end, we
were also able to streamline our operations and to significantly reduce
operating expenses and cash required to fund our future operations. More so,
this was achieved without impacting our current business or growth prospects.
With the proof of concept phase of our development now behind us, we now look
forward to an acceleration of our sales and to additional agreements with
established partners whom will support our worldwide development efforts"

    Additional financial details about the Fiscal year ended September 30,
    2008

    Additional financial details in regards to the fiscal year ended September
30, 2008 are available in the financial statements and in the Management's
Discussion and Analysis which can be found at www.sedar.com

    Outlook

    Mr. Carol Murray added: "Despite the current economic uncertainty, we
remain confident that major infrastructure work will prove to be a significant
element of recovery in many industrialized countries and that such a context
will capture the attention of entrepreneurs interested by modern methods
allowing increasing productivity and return on investment. We also believe
that the sector's anticipated growth rates currently create a favourable
environment to seek out financial partners who could allow accelerating our
business plan, which includes the negotiation of new OEM agreements and the
direct parallel development of niche markets such as the military.
    The restructuring initiated at the end of our fiscal year, our current
financial resources coupled with tight operational management will allow the
long-awaited rollout of the new the series 5000 PicBucket(R) which is
garnering significant interest in the market. We believe that the rollout of
this series in conjunction with its achievements on construction sites will
definitely establish PicBucket(R) as the ultimate for infrastructure work. We
believe, amongst others, that this rollout along with other successful
business opportunities will allow for a steady increase of our order book as
well as more predictable revenue growth."

    Interest conversion and grant of options

    PowerTech confirms the conversion into common shares of an amount of
$71,164 of accrued interest to September 29, 2008 in regards to debt held by
"Le Fier Cap Diamant, Société en commandite". The payment translates into the
issuance of 295,133 shares.
    Also, the board of directors issued, pursuant to the terms and conditions
of the company's Stock Option Plan, 400,000 stock options to management to
compensate for temporary salary concessions. The options will be exercisable
over a five year period at $0.20 per share.

    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; Mr. Marc Jasmin, CMA, Partner, Jasmin-Dumais
Financial Communications Inc., Investor Relations, (514) 231-2360, Fax: (514)
221-3762, marc@comjamais.com

Organization Profile

POWERTECH CORPORATION INC.

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