Power Efficiency Corporation Is Awarded a $163,000 Contract by Los Angeles County Metropolitan Transportation Authority

Business Wire, March 27, 2007

LAS VEGAS -- Power Efficiency Corporation (OTCBB: PEFF), a developer and manufacturer of advanced energy savings technologies for electric motors, today announced that the Company has been awarded a $163,000 contract by the Los Angeles County Metropolitan Transportation Authority (Metro) to provide Motor Efficiency Controllers to be installed on all 122 of their transit escalators. Metro has implemented an escalator power efficiency retrofit project throughout its transportation system in Los Angeles County where the units will be installed.

According to Mr. Hussein Farah, Metro's Facilities Maintenance Manager- Contract Services, the Agency has been testing Power Efficiency's technology on some of its escalators for some time in an ongoing effort to find ways to reduce electrical consumption. Metro's testing showed that possible savings ranged up to 35% in some cases and as a result Metro's Facilities Maintenance Department management decided to move forward with the project.

"We are pleased that Metro has the confidence in both Power Efficiency Corporation and its technology to move forward in this extensive retrofit," said Bruce Gaynor, Vice President of Sales and Marketing at Power Efficiency Corporation. "The increased electrical efficiency gained by using this product will benefit Metro and the environment of Southern California by reducing both electrical consumption and carbon emissions."

About Power Efficiency Corporation

Power Efficiency Corporation develops and markets advanced energy saving technologies for electric motors. The Company's first product is an energy saving soft start. The product gradually brings an electric motor from rest to full speed. Once at full speed, the Company's patented technology works like cruise control for a car; it delivers the motor just enough electricity to maintain a constant operating speed, whether the motor is heavily or lightly loaded. The technology saves energy on motors found in applications such as escalators, elevators, grinders, granulators, mixers, saw mills and more. Energy savings from these controllers are typically 20-40%. The controllers also reduce the operating heat of the motor, producing significant motor life extension and downtime reduction benefits. Power Efficiency's products are CE Marked and CSA certified. The Company is also developing products to reduce the amount of electricity used by appliances and light commercial equipment. For more information visit www.powerefficiencycorp.com.

About Los Angeles County Metropolitan Transportation Authority

Los Angeles County Metropolitan Transportation Authority (Metro) is unique among the nation's transportation agencies. It serves as transportation planner and coordinator, designer, builder and operator for one of the country's largest, most populous counties. More than 9.6 million people - nearly one-third of California's residents - live, work, and play within its 1,433-square-mile service area.

For more information visit www.mta.net

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 2005 Annual Report. Power Efficiency assumes no obligation to update the information in this release.