Energy Savings Average 36% on Two Escalators at Las Vegas Landmark Casino, Bolstering Sales Possibilities in Gaming and Hospitality Industry

LAS VEGAS--Power Efficiency Corporation (OTCBB: PEFF), a developer and manufacturer of advanced energy savings technologies for electric motors, today announced that it completed successful tests on two escalators at the Sam's Town Las Vegas, one of the flagship properties of Boyd Gaming Corporation.

"We are extremely pleased our products have performed so successfully in this test, the latest of three tests we've recently announced. With this positive result, we are more encouraged than ever about the likelihood of an industry-wide adoption of our products," said Steven Strasser, the Company's Chairman and CEO.

Boyd Gaming Corporation (NYSE: BYD) has nineteen gaming entertainment properties in six states. With 2005 revenues of over $2.2 billion, Boyd Gaming is the third largest gaming company in the U.S.

The results of these tests reinforce the drastic power cost reductions possible with Power Efficiency's products in commercial and industrial facilities. Equipment powered by electric motors that operate at constant speed, but have a variable load, are excellent candidates for energy savings with the Company's technology. This includes not only escalators and elevators, but also many types of industrial equipment, such as granulators, mixers, grinders, stamping presses, crushers, and more. Further tests on equipment in commercial and industrial facilities are planned and ongoing.

The specific parameters and results of the test include:

Two escalators, each with 15 horsepower electric motors operating virtually non-stop 24 hours a day, 7 days a week

The "up" escalator showed 40.5% energy savings, resulting in projections of over 10,700 kilowatt hours in savings per year

The "down" escalator showed 32.4% energy savings, resulting in projections of over 6,400 kilowatt hours in savings per year