January 28, 2009

Power Efficiency Corporation Announces Elevator and Escalator Industry Veteran Named Vice President of Business Development

Company Adds Expertise to Build on Successes and Expand Sales in the Global Vertical Transportation Market

January 28, 2009 – Las Vegas, NV – Power Efficiency Corporation (OTCBB:PEFF.OB), a clean tech company focused on energy efficiency technologies for electric motors, announced today that industry veteran Alan Taylor has joined its management team as Vice President of Business Development. Mr. Taylor joins Power Efficiency with more than 30 years experience in the elevator and escalator industry, having held key engineering, management and consulting roles at leading international firms.

Prior to joining Power Efficiency, Mr. Taylor was an associate at HKA Elevator Consulting, Inc. and Principal at Barker Mohandas LLC – both vertical transportation consulting companies. Prior to his work in the consulting field, Mr. Taylor held numerous positions in the elevator/escalator industry with ThyssenKrupp Elevator (TKE) and Dover Elevator. He was Vice President International Technical Services China, for TKE where his responsibilities included managing day-to-day operations and developing a highly trained field engineering staff. Mr. Taylor was also the Chief Technology/Production Officer for a TKE joint venture in Seoul, South Korea, and held various other positions including Operations Manager in other TKE offices. Mr. Taylor completed course work in Lift Engineering at Northampton University in England and is currently writing his dissertation for his MSc in Lift Engineering.

Steven Strasser, CEO of Power Efficiency, said, “We are extremely pleased to have Alan Taylor join our team. His extensive industry expertise will be very beneficial as we continue to expand our business development efforts in the global elevator and escalator industry. Mr. Taylor will be managing our sales and marketing efforts in the vertical transportation market. His first responsibility is to complete our ongoing contract negotiations with large OEMs for private label sales agreements. He will also be developing new business opportunities in Europe and Asia, as well as North America.   We strongly believe Mr. Taylor is the right person to build and expand on our successes in this market.”

Power Efficiency has identified the elevator and escalator industry as one of its initial target markets for its motor efficiency controllers (MECs) and has completed numerous high profile projects on escalators at airports, transit systems, malls and retail establishments. MECs incorporate Power Efficiency’s proprietary E-Save Technology®, which improves the efficiency of electric motors in variable load, constant speed applications, such as escalators and MG-set elevators. Globally there are approximately 35,000 new escalators made each year and 400,000 existing escalators in operation, and Power Efficiency estimates there are over 500,000 MG-set elevators in operation in the world. MECs with E-Save Technology can be incorporated in new equipment by manufacturers or can be retrofitted onto existing equipment as an energy saving alternative to standard motor controls. MECs with E-Save Technology reduce energy use by up to 35% and therefore also reduce CO2 emissions.

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, controls 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, and 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 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 SEC filing. Power Efficiency assumes no obligation to update the information in this release.