LAS VEGAS--(BUSINESS WIRE)--Jan. 17, 2006--Power Efficiency Corporation (OTC-BB: PEFF - News), a developer and manufacturer of advanced energy savings technologies for electric motors, announced today that Michael Varney has been named to the position of vice president of sales and marketing for Power Efficiency Corp. (PEC) in Las Vegas. Mr. Varney was previously the vice president of marketing at the Las Vegas Chamber of Commerce for almost nine years.

"I expect 2006 to be a breakout year for our company," said Power Efficiency Corp.'s CEO Steven Strasser. "Rising energy prices have become a major issue for domestic and international businesses. Energy users, utilities and utility regulatory agencies are searching for strategies to cut consumption. The time is right for our product line. I am confident Mike's marketing and sales background will be the catalyst Power Efficiency Corp. is looking for to achieve its place in energy conservation programs around the world."

"This is precisely the right time for Power Efficiency's products," said Mr. Varney. "Companies everywhere want to reduce their energy costs and demonstrate their commitment to a better environment. That's exactly what our power controllers do. They are effective, proven, easy to install and they begin delivering R.O.I. the minute the switch is flipped. On my second day with the company, I watched an installation of a power controller on an escalator at a local department store. It was apparent to me from watching the technology deployed in a real-world environment that it provides compelling energy savings for Power Efficiency Corporation's growing customer base."

Mr. Varney joined the Las Vegas Chamber of Commerce in April 1997 as vice president of marketing. Under his sales and marketing direction, the Chamber sharply increased its membership, almost tripled its membership revenue and redefined its brand image in Las Vegas. Many of the organization's sales and marketing practices have become models for chambers of commerce around the country. He brings thirty years of sales and marketing expertise to his new role at Power Efficiency Corp. He has served as a broadcast company executive and owned his own sales and marketing consulting firm in Madison, Wis. for six years prior to moving to Las Vegas. He is a graduate of the University of Wisconsin with a B.A. in communications arts.

Mr. Varney served as the chairman of the National Association for Membership Development and later served on the executive committee of the American Chamber of Commerce Executives. He has lectured on the subject of sales and marketing at chamber of commerce conferences in states and regions across North America. In 2004 - 2005, Mr. Varney served on the executive committee of Mayor Oscar Goodman's Las Vegas Centennial Celebration Committee.

Power Efficiency Corporation designs and manufactures controllers that reduce the amount of energy used by alternating current induction motors. PEC power controllers allocate power in direct proportion to the required workload, eliminating wasted energy. The company's core technology, which is based on patented improvements to NASA technology, is effective on motors that run at constant speeds and under variable loads. These motors are found in escalators, elevators, grinders, granulators, mixers, saw mills and many other applications. The savings from these controllers are typically 15-35%, 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 electronic motors that are found in applications such as clothes dryers, refrigerators, vending machines, mixers and coffee grinders.

For more information visit www.powerefficiencycorp.com or contact B.J. Lackland at 702-697-0377 (blackland@powerefficiency.com) or Mr. Varney at the same phone number (mvarney@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 described from time to time in the Company's SEC filings. Power Efficiency assumes no obligation to update the information in this release.