Powertech reports results for second quarter

TERREBONNE, QC, May 31 /CNW Telbec/ - PowerTech Corporation Inc. "PowerTech" (TSX-V: PWB) today reported its results for the second quarter ended March 31, 2010. Revenues increased to $162,540 compared to $126,105 for the same quarter last year. The unaudited net loss for the quarter increased to $443,669 ($0.01 per share) compared to a net loss of $456,057 ($0.01 per share) for the same period last year.

    
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    Selected financial information

    For the three-month period ended March 31*

                                                            First six months
                                 Q2/2010     Q2/2009        2010        2009
                               ----------------------------------------------
    Revenues                    $162,540    $126,105    $228,216    $549,164
    Net loss                   ($443,669)  ($456,057)  ($901,548)  ($781,227)
    Basic and diluted loss
     per share                    ($0.01)     ($0.01)     ($0.02)     ($0.02)
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    * unaudited

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    Additional Highlights

    - Delivered first units to OEM distributor in Istanbul Turkey and
      developed OEM versions to be produced locally.
    - Converted a $1M debenture plus accumulated interest into common shares
      of the Company.

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Mr. Carol Murray, President and Chief Executive Officer of PowerTech stated: "We are somewhat satisfied with the results as we continue to work with OEM partners to develop new markets but are disappointed on the continued slow economic situation and the delays in closing the previously announced acquisition but we remain optimistic to close the transaction. Also, the conversion of the debenture into shares of the Company will reduce our short term debt obligation and improve our balance sheet. Due to the ongoing economic downturn, OM Engineering delayed the deployment plan which will impact PowerTech's revenues from this OEM agreement in the short term.".

Additional financial details about the quarter ended March 31, 2010

The financial information in regards to the three-month period ended March 31, 2010 should be read in conjunction with the financial statements and the interim management and discussion analysis dated March 31, 2010. These documents will be available at www.sedar.com within the regulatory filing requirements.

Outlook

The Company's current focus is to successfully complete the purchase of all the assets of a construction, and agricultural wear and tear parts manufacturer. The company believes it can clearly benefit by consolidating regional niche players in Northeast Canada which would allow for the elimination of many duplicate products and the potential for operational and business development synergies. This acquisition could create a springboard for future acquisitions that would quickly translate into an improved financial profile.

The Company's immediate goal is to secure the necessary financing to complete this transaction. As such there are no guarantees that such a financing can be completed, nor any guarantees it can be completed in a timely manner. Management is however dedicating every necessary effort to ensure the completion of this transaction as soon as possible.

Overall the Company wishes to fund its capital requirements mainly by way of cash flows generated from operations and additional capital. The Company's ability to generate sufficient short-term and long-term capital depends on various factors, including general economic conditions, technological advancements, market acceptance of its products and competition. Generally speaking, there can be no assurance that the Company will generate sufficient cash flows from operations or capital to meet its current needs.

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.

"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)

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 through OEM agreements with large manufacturers.

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

%SEDAR: 00020841EF

For further information: Mr. Carol Murray, President and Chief Executive Officer, PowerTech Corporation Inc., [phone] #101, Fax: [phone], [email protected]