Power Efficiency Corp. Announces Agreements With Otis Elevator and Amtech Elevator

Business Wire, Dec 18, 1998

HACKENSACK, N.J.--(BUSINESS WIRE)--Dec. 18, 1998--Power Efficiency Corp. ("PEC" or the "Company")(OTCBB: "PREF") today announced that Edison Power Technologies Inc. ("Edison"), one of the company's lead distributors, has reached agreement with Otis Elevator Company ("Otis") to sell Edison's "Energy Master" motor controller for resale to the elevator industry.

The energy-saving motor device to be purchased by Otis was developed by and includes PEC's proprietary technology, and is effective in reducing energy consumption in industrial motors, including motors which power elevators and escalators. PEC will supply Edison with all of the Energy Master units to be distributed to Otis.

Otis intends to utilize the Energy Master to retrofit its elevator and escalator installations and will market the product line through its international sales force. Otis, a subsidiary of United Technologies, is the world's largest elevator company, maintaining approximately 70 percent of the world's seven million elevator installations.

In unrelated news, Edison also signed an agreement with Amtech Elevator Services of Whittier, Calif. ("Amtech") to market the Energy Master product line through Amtech's national sales force. Amtech recently installed and successfully tested the Energy Master at Harrah's Hotel and Casino in Atlantic City, N.J. Edison's agreements with both Otis and Amtech are open-ended and, therefore, no purchase minimums have be disclosed.

PEC designs, develops, markets and sells proprietary solid state electrical components which effectively reduce energy consumption in alternating current ("A.C.") induction motors, the workhorse of industrial and commercial facilities throughout the world. PEC's products utilize technology licensed from NASA.