April 24, 2007

Power Efficiency Completes Equity Financing of $4.2 Million

Investors Include Management and Directors, Notable Individuals, Energy-Focused Institutional Investor; Equity Offered at $0.30 Per Share

LAS VEGAS--(BUSINESSWIRE)---April 24, 2007—Power Efficiency Corporation (OTCBB: PEFF), a developer and marketer of advanced energy savings technologies for electric motors, announced it closed on a total of $4.2 million in equity financing. Investors in the financing included members of management and the board of directors, an energy-focused hedge fund, and numerous highly accomplished individuals.

The equity financing included sales of units over a period from November 30, 2006 until March 31, 2007. The units are comprised of two shares of common stock and one warrant. The purchase price for each unit was $0.60. Each warrant has an exercise price of $0.40 per share. On November 30, 2006, the Company also closed a $2 million offering of senior secured notes.

“We are extremely honored at the outstanding investors in this offering. It adds to the foundation for Power Efficiency’s growth and development into a leading energy technology company,” said Steven Strasser, Power Efficiency’s Chairman & CEO. “I am confident enough in the Company’s future that I have personally invested a substantial amount in the recent equity and debt offerings.”

On December 12, 2006, a Company press release provided information about some of the earlier investors in the offering, including:
• Notable Individuals: Herman Sarkowsky, David Heerensperger, Irwin Helford, Ron Boyer, Michael Saltman
• Hedge Fund: Marathon Resource Investments LLC
• Insiders: Steven Strasser, Chairman & CEO, George Boyadjieff, Director and Sr. Technology Advisor, and John “BJ” Lackland, CFO.

Some of the highly accomplished recent investors in the offering include:
• Donald Snyder is the former President of Boyd Gaming Corporation and former Chairman & CEO of First Interstate Bank of Nevada (now Wells Fargo). He is the Chairman of the Las Vegas Performing Arts Center Foundation and serves on the boards of Sierra Pacific Resources, the Nevada Development Authority, and the UNLV Foundation.

• William S. Boyd is the Chairman and Chief Executive Officer of Boyd Gaming Corporation (NYSE: BYD). With 16 casino entertainment properties in Nevada, New Jersey, Mississippi, Louisiana, Indiana, and Illinois, Boyd Gaming is one of the premier casino entertainment companies in the United States.

• Terry Wright is the owner and Chairman of the Board of Nevada Title Company and Nevada Construction Services and was a founder of Westcor Land Title Insurance Company. He is the former chairman of the Nevada Development Authority, the Nevada Land Title Association, and the Young President's Organization. Mr. Wright is a member of the boards of the UNLV Foundation and Southwest Gas Corporation.

About Power Efficiency Corporation
Power Efficiency Corporation develops and markets advanced energy saving technologies for electric motors. The Company’s first product is an energy saving soft start. The product gradually brings an electric motor from rest to full speed. Once at full speed, the Company’s patented technology works like cruise control for a car; it delivers the motor just enough electricity to maintain a constant operating speed, whether the motor is heavily or lightly loaded. The technology saves energy on motors found in applications such as escalators, elevators, grinders, granulators, mixers, saw mills and more. The controllers have also been shown to reduce the operating heat of the motor, producing significant motor life extension and downtime reduction benefits. Power Efficiency’s products are CE Marked and CSA certified. The Company is also developing products to reduce the amount of electricity used by appliances and light commercial equipment, such as refrigerators, residential air conditioning and shop tools. For more information visit 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 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 in the Company’s 2006 Annual Report. Power Efficiency assumes no obligation to update the information in this release.

Contact:
Power Efficiency Corporation
B.J. Lackland, 702-697-0377
Chief Financial Officer
blackland(at)powerefficiency.com