Power Efficiency Corporation Announces the Engagement of the Honorable Richard Gephardt and the Gephardt Group as its Business Adviser

May 28, 2008 – Las Vegas, NV – Power Efficiency Corporation (OTCBB:PEFF.OB), a green energy company focused on efficiency technologies for electric motors, announced today that it has engaged Gephardt Group, LLC, headed by the Hon. Richard Gephardt, former congressman and majority leader of the United States House of Representatives, as its business adviser.

“I am very pleased to be advising the management team and the board of Power Efficiency Corporation,” stated Richard Gephardt. “During my years of public service, I strongly encouraged additional focus on climate change and feel that today there are few issues as important and critical to our future. Furthermore, I believe that improved energy efficiency is one of the important strategies for reducing carbon emissions. For users of electric motors, Power Efficiency’s E-Save Technology™ is an excellent solution that reduces both energy usage and ultimately carbon emissions.”

“As Power Efficiency’s business continues to grow, the addition of Gephardt Group to our team is very timely,” said Steven Strasser, Power Efficiency Corporation’s Chairman and CEO. “We are seeing significant interest in our motor efficiency controller using our proprietary E-Save Technology™ in the USA as well as internationally. Gephardt Group will assist in developing new channels for the company’s products with the large OEMs in the industrial, commercial and particularly the home appliance markets.”

“Power Efficiency’s products have now qualified for incentive financing with seven electric utilities, with more pending approvals. We feel that it is appropriate to start a dialog with state and federal officials with a view of promoting energy efficiency through the E-Save Technology™. Richard Gephardt’s experience and expertise is unparalleled in this arena. We are privileged to have the Hon. Richard Gephardt and his team working with us.”

About Gephardt Group, LLC
Gephardt Group is a multi-disciplined consulting firm focused on helping clients gain access to new markets, expand competitive advantages in existing markets, manage labor negotiations, develop political strategies and promote policy initiatives.

About Power Efficiency Corporation
Power Efficiency Corporation is a green energy 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 first product based on E-Save Technology™ is a Motor Efficiency Controller for applications such as escalators, crushers, granulators, mixers, saws and MG elevators. Power Efficiency is also developing a new product based on E-Save Technology™ for the tens of millions of small motors found in applications such as residential air conditioning, pool pumps, and clothes dryers. The company is working with manufacturers to incorporate this technology directly into new motors and 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.

Contact:
B.J. Lackland, CFO, 702-697-0377