Electric Motor Operating Costs Reduced Up To 40 Percent.

Business Editors/Energy Writers

HACKENSACK, N.J.--(BUSINESS WIRE)--March 22, 2000

Any company depending on motors in its operations can now reduce their energy consumption up to 40 percent by installing newly developed motor controllers produced and marketed by Power Efficiency Corp. (OTC BB: PREFe) based here.

Named the "Power Commander," the energy-saving device, partially based on technology exclusively licensed from NASA, delivers current to alternating current motors only when, and in the amounts, needed. According to Nicholas Anderson, president of Power Efficiency, these controllers have demonstrated savings up to 40 percent in a wide variety of applications.

"With two million such motors in the U.S. alone and a similar number operating abroad," he said, "the savings in energy costs worldwide can be very large indeed, especially for developing countries where electric power can be both limited and expensive."

He added that the recent rise in the price of oil from $12 to $30 a barrel intensifies this problem in countries using oil for power generation.

Tests by major corporations both here and abroad have also proved the new controllers reduce motor wear and extend their operating life. They also feature a "soft start" which the industry favors, Anderson said.

An international marketing program is now under way, with three distributor organizations already involved and more to be added soon, according to Anderson.

Power Efficiency Corp. (PEC) designs, develops, manufactures and sells proprietary solid-state electrical devices and systems which reduce energy consumption throughout industry and commerce.

NOTE: This news release contains "forward-looking statements" which involve risks and uncertainties which could cause the company's experience and actual results to differ materially from the expectations expressed in these statements.