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PowerTech reports its third quarter results

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^{Published in Business and Finance on Monday, August 31st 2009 at 7:51 GMT by Market Wire}  

 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. ------------------------------------------------------------------------- ------------------------------------------------------------------------- Selected financial information For the three and nine month periods ended June 30(*) --------------------------- First nine months --------------------------- Q3 / 2009 Q3 / 2008 2009 2008 ------------------------------------------------------------------------- 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 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 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. ------------------------------------------------------------------------- ------------------------------------------------------------------------- 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: Mr. Carol Murray, President and Chief Executive Officer, PowerTech Corporation Inc., (450) 963-6400 #101, Fax: (450) 963-4411, [ carol.murray@powertechci.com ]