PowerTech signs a letter of intent to purchase an industrial parts
manufacturing company

    
    If all conditions are met, the transaction will add about $8 million in
                     revenues and operational synergies
    

TERREBONNE, QC, Oct. 6 /CNW Telbec/ - PowerTech Corporation Inc. "Powertech" (PWB:TSX-V) or the "Company" announces that on October 2, 2009, it signed a letter of intent to acquire all issued and outstanding shares of a North-American company (the "Target") which supplies wear parts for construction, agricultural and other industries. Given the nature of the proposed transaction, the name of the Target will only be announced at closing.

The transaction is conditional to 1) obtaining appropriate financing 2) approval from competent regulatory authorities and 3) satisfactory due diligence in regards to legal, accounting, financial, technological and environmental matters as well as other preliminary conditions.

The offered price is $3,800,000, of which $3,300,000 will be payable at the closing date and $500,000 as holdback to cover closing adjustments, representation and warranty. Additionally, Powertech will issue 1,500,000 common shares at closing and the equivalent of $200,000 of common shares depending on the performance of the Target during the three fiscal years following the transaction.

For its fiscal year ended on April 30, 2009, the Target generated revenues of about $9 million as well as earnings before interest, taxes, depreciation, and amortization ("EBITDA") of $1,4 million before corporate charges.

Disclaimer in regards to forward-Looking Statements

Certain statements included herein, including those that express management's expectations or estimates of the future performance of the Company, 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 Inc. nor its Regulation Services Provider
    (as that term is defined in the policies of the TSX Venture Exchange
    Inc.) accepts responsibility for the adequacy or accuracy of this
    release.
    

About Power Tech (www.powertechci.com)

Power Tech 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.

Power Tech'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. Power Tech'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 PicBuckets (R), PicHammer (R) and the Power Tech logo are registered trademarks of Power Tech Canada Inc.

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SOURCE POWERTECH CORPORATION INC.

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

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POWERTECH CORPORATION INC.

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