COMPANY NEWS

Power Efficiency Introduces A New Product for Hydraulic Elevators

A New Energy-Saving Soft Start with E-Save Technology™ is Now Available for the Hydraulic Elevator Market

SAN DIEGO, CA – December 20, 2011  - Power Efficiency Corporation (OTC: PEFF), a clean tech company focused on efficiency technologies for electric motors, announced today the recent completion of an energy saving soft start product for the hydraulic elevator industry.  The new product containing Power Efficiency’s patented E-Save Technology™  is now qualified and will be released for sale in the first quarter of 2012.

The product is an electronically controlled, three phase, solid state soft starter with motor protection, and E-Save Technology features. The product will operate in a Delta or across the line configuration, designed to cover a wide range of currents and voltages.

 “This new offering will become part of our energy saving product line using E-Save Technology. This product will be sold to our vertical transportation OEM partners consisting of the four major global OEMs with whom PEC already has signed contracts,”  said Steve Strasser, Chairman and CEO of Power Efficiency Corporation. “In addition to presenting these products to our current OEM customers, they will also be available for sale to the rest of the global hydraulic elevator industry.”

 “There are over 700,000 hydraulic elevators installed in the U.S.,” said Rick Sander, Chief Operating Officer of Power Efficiency Corporation. “Approximately 10% of the installed base is in need of replacements for their electrical starters annually. This is a very large opportunity for Power Efficiency Corporation to bring a value-added energy efficiency solution to this large market.”

“We also believe that this product could become a standard electrical starter to the 14,000 new hydraulic elevators produced annually in North America,” said Sander.

The company already produces single phase and three phase motor efficiency controllers containing E-Save Technology which reduce the energy consumption of electric motors by matching the power supplied to the motor based on the load. In cases of light to variable loads, typical energy savings as a result of the E-Save Technology platform can be up to 40%.

About Power Efficiency Corporation 

Power Efficiency Corporation is a clean tech company focused on efficiency technologies for electric motors. Power Efficiency is incorporated in Delaware and is headquartered in Las Vegas, Nevada.  The Company has developed a patented and patent-pending technology platform, called E-Save Technology, which has been demonstrated in independent testing to improve the efficiency of electric motors by up to 35% in appropriate applications.  Electric motors consume over 25% of the electricity in the U.S. and many operate inefficiently.  E-Save Technology can be licensed to motor, control and equipment manufacturers.  Power Efficiency’s products, based on E-Save Technology, include an industrial Motor Efficiency Controller for three phase applications, such as escalators, crushers, granulators, mixers, saws and MG elevators, as well as a new Appliance Motor Efficiency Controller for small single phase applications such as residential and light commercial appliances.  For more information, go to www.powerefficiency.com.

As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company’s products in the market; the Company’s success in technology and product development; the Company’s ability to execute on its business model and strategic plans; and all the risks and related information described from time to time in the Company’s SEC filings, including the financial statements and related information contained therein. Power Efficiency assumes no obligation to update the information in this release. 

Power Efficiency Corporation Contacts:

Rick Sander, COO
Tel: 1-800-975-9111

Jill Johnson, Marketing Manager
Tel: 1-858-750-3875  ext. 119