"PowerTech" today announced the signature of a major OEM agreement with NPK Construction Equipment, a world renowned company in the construction industry and a world leader in heavy machinery demolition equipment. The agreement provides that PowerTech will manufacture and sell its products, the PicBucket and PicHammer, to NPK, integrating NPK hydraulic cells specially designed for this purpose. The products will then be commercialized and sold by NPK with their colors and under the NPK brand name in the U.S.A., Mexico and Latin America.

“Because of its substantial commercial potential, this agreement constitutes a decisive step in PowerTech's development and in the implementation of our commercialization strategy. Given the strength of the NPK brand in its target markets, we anticipate that this agreement will result in significant sales of our products, the PicBucket and the PicHammer, beginning in the summer of 2007. In time, we believe that this strategic alliance will result in annual sales of several hundred units. This agreement falls perfectly in line with our development strategy that focuses on completing strategic agreements with major partners who are well established in their industries," said Mr. Carol Murray, President and Chief Executive Officer of PowerTech.

Recognized as one of the world's four main manufacturers of hydraulic hammers and attachments, NPK is part of the Nippon Pneumatic conglomerate, an industrial corporation with over 70 years experience in the construction attachments industry. NPK Construction Equipment develops, manufactures and distributes products for the NPK Corporation in the United States, Mexico, Latin America and Canada. In addition, NPK has one of the best heavy equipment dealer distribution networks in the United States and Latin America. To serve these markets, it is backed by a highly reputable sales and client service team.

"We are very pleased with this agreement. NPK gives us rapid access to a vast distribution network for our products. For example, NPK counts on a network of 74 distributors with more than 300 points of sale. These dealers will add the NPK private branded PicBucket and PicHammer to the commercial product portfolio already offered by NPK. Our strategy of establishing partnerships with world-renowned brands such as NPK is allowing us to stimulate demand for our products and ensure our level of competitiveness, all the while benefiting from an international reach thanks to our partner's contribution," said Mr. Yves Sicotte, Vice President, Sales and Marketing of PowerTech.

A major step forward

"PowerTech's technology constitutes a major step forward for our industry," said Dan Tyrrell, President of NPK Construction Equipment in the United States. "By forming this strategic alliance, we combine our complementary strengths that will enable us to market a distinctive, high value-added product. Bringing together PowerTech's innovative technology with the power and reliability of NPK's hydraulic cells is a highly promising and almost guaranteed for success. In addition, our distributors have already shown a great deal of interest and we hope to be able to deliver the first units during the second quarter of this year," said Mr. Tyrrell.

The formation of this alliance with NPK is fully in line with PowerTech's efforts in 2006; a year which was highlighted by the signing of new distribution agreements with strategic partners, as well as by the development of new, innovative products targeting rapidly growing markets. "As a world leading player in this industry, NPK's decision to partner with us demonstrates the quality of our technology and the accuracy of our strategy. It is a major vote of confidence which allows us to envision the next step of our development with optimism," concluded Mr. Murray.