October 23, 2006

Power Efficiency Corporation Featured in CNET Article on Electric Motor Efficiency

LAS VEGAS--(MARKETWIRE)---Power Efficiency Corporation (OTCBB: PEFF), announced today that it was featured in a news article on CNET (www.news.com) highlighting the Company’s energy efficiency technology for electric motors. CNET is a news website where people go to discover the latest in technology and consumer electronics. The article, titled “Putting the Electric Motor on a Diet”, is available at the following link:
http://news.com.com/Putting+the+electric+motor+on+a+diet/2100-1008_3-6127702.html

About Power Efficiency Corporation
Power Efficiency Corporation develops and markets advanced energy saving technologies for electric motors. The Company’s first product, called the Power Efficiency Motor Efficiency Controller™, reduces the amount of energy used by electric motors in applications such as many escalators, elevators, grinders, granulators, mixers, saws, stamping presses. The Power Efficiency Motor Efficiency Controller™ allocates power in direct proportion to the motor's required workload, eliminating wasted electricity. The company's core technology is based on patented improvements to NASA technology. Energy savings from the Company’s products are typically 20-40% in appropriate applications. The controllers also reduce the operating heat of the motor, producing significant motor life extension and downtime reduction benefits. PEC products are UL compliant and CE and CSA certified.

For more information visit www.powerefficiencycorp.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 product 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 2005 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@powerefficiencycorp.com