June 9, 2006
Power Efficiency Corporation Announces Successful Tests at Stratosphere Casino Hotel and Tower
Energy Savings Average 29.6% on Two Escalators in Latest Test of Energy Saving Technology
LAS VEGAS--(BUSINESS WIRE)---Power Efficiency Corporation (OTCBB: PEFF), a developer and manufacturer of advanced energy savings technologies for electric motors, today announced that it completed successful tests on two escalators at the Stratosphere Casino Hotel and Tower, one of the most recognizable properties on the Las Vegas Strip. The Stratosphere Casino Hotel and Tower is part of the American Casino & Entertainment Properties family of casinos.
“Our products performed very successfully in these tests, the latest of four tests we’ve recently announced. With positive results in numerous recent tests, we expect to increase our sales for escalator applications significantly in the coming months,” said Steven Strasser, Power Efficiency’s Chairman and CEO.
“Energy is a core national and environmental concern. With energy prices constantly rising, we believe energy saving technologies, such as our company’s product, the Power Efficiency Motor Efficiency Controller, will be extremely valuable in the marketplace,” he added. “Electric motors consume almost one quarter of the electricity produced in the United States. Many of these motors are candidates for our technology. As these recent tests have shown, our patented technology is effective at consistently saving 30% or more of the energy used on escalators. The technology also has applications on many types of industrial equipment, such as granulators, mixers, grinders, stamping presses, crushers and more.”
American Casino & Entertainment Properties, along with its subsidiaries and affiliate companies, owns and operates five casinos in Nevada and New Jersey, including Arizona Charlie’s Decatur and Boulder, the Flamingo Laughlin and Sands Atlantic City.
The specific parameters and results of the test include:
• Two escalators, each with 15 horsepower electric motors operating virtually non-stop 24 hours a day, 7 days a week
• The "up" escalator showed 26.5% energy savings, resulting in projections of over 4,700 kilowatt hours in savings per year
• The "down" escalator showed 32.6% energy savings, resulting in projections of over 5,500 kilowatt hours in savings per year
About Power Efficiency Corporation
Power Efficiency Corporation designs and manufactures the Power Efficiency Motor Efficiency Controller(TM), a product that reduces the amount of energy used by electric motors in many constant speed/variable load applications. These motors are found in escalators, elevators, grinders, granulators, mixers, saw mills and many other applications. The Power Efficiency Motor Efficiency Controller(TM) 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. The savings from these controllers are typically 20-40%, but can be as high as 45%. The controllers also reduce the operating heat of the motor, enabling significant motor life extension and downtime reduction benefits. PEC products are UL compliant and CE and CSA certified. The Company also has a prototype unit applicable to single-phase electric motors that are found in applications such as clothes dryers, refrigerators, vending machines, mixers and coffee grinders.
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
