August 23 , 2007

Power Efficiency Corporation Announces CEO and CFO Purchase Shares on Open Market

August 23, 2007 – Las Vegas, NV – Power Efficiency Corporation (OTCBB: PEFF.OB), a green energy company focused on efficiency technologies for electric motors, today announced the CEO and CFO purchased 393,000 shares in the Company from August 20 to August 23, 2007. This constitutes just over 1% of the outstanding shares of the Company.

Steven Strasser, Chairman and CEO stated, “We decided to purchase shares in the Company at this time because we believe the Company has great promise, we have confidence in its viability, and we believe the shares are an attractive investment. Furthermore, there are limited times throughout the year when insiders can purchase shares. I believe there is no greater show of confidence executives can show in a company than purchasing shares and aligning their interests with shareholders.”

Mr. Strasser purchased 350,000 shares at various prices, ranging from $0.25 to $0.30, for a total of approximately $90,000. Mr. Lackland purchased 43,000 shares at prices ranging from $0.23 to $0.30 for a total of $10,100. 

About Power Efficiency Corporation – Ticker Symbol PEFF
Power Efficiency Corporation (OTCBB: PEFF) is a green energy company focused on efficiency technologies for electric motors.  Power Efficiency is incorporated in Delaware and is headquartered in Las Vegas, NV.  The Company has developed a patented and patent-pending technology platform, called esave Technology™, which improves the efficiency of electric motors by 15-35% in appropriate applications. Electric motors consume over 25% of the electricity in the U.S. and many operate inefficiently.  esave Technology™ can be licensed to motor, controls and equipment manufacturers. Power Efficiency’s first product based on esave 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 esave 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 on 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
Andrew Barwicki, Investor Relations, 516-662-9461

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