EXHIBIT
99.1




Power
Efficiency Reports Third Quarter 2009 Financial Results




Transitional
Quarter Sets Stage For Revenue Growth in 2010




LAS
VEGAS, NV, November 16, 2009 -- (BUSINESS WIRE) -- Power Efficiency Corporation
(OTCBB: PEFF - News), a clean tech company focused on efficiency technologies
for electric motors, reported financial results today for the three and nine
months ended September 30, 2009.





Sales for
the quarter ended September 30, 2009 were $63,130. Net loss for the quarter,
including $118,743 in non-cash expenses related to stock based compensation and
$334,390 in non-cash expenses related to unrealized loss on the fair value of
certain outstanding warrants, was $1,404,718.  Excluding these
non-cash amounts, the Company lost $951,585 in the quarter. The Company recorded
a gross margin of $13,427, or 21%.





Steven
Strasser, CEO of Power Efficiency Corporation said, “The third quarter of 2009
was a critical part of the transition of the company toward consistent and
growing revenue from sales of our digital Motor Efficiency Controllers
(MEC).  Several years ago, the Company was effectively “restarted” and
recapitalized, beginning the transition away from a dated analog product and
remaking all key operations.  Over the past several years, we have
developed our digital MEC, progressing through technology research and
development and product development and refinement.”





Strasser
continued, “This summer we reached several critical milestones that enabled us
to sell the digital MEC through large channels in the vertical transportation
(elevators and escalators) and industrial markets.  We announced our
first OEM contracts with KONE and ThyssenKrupp, two of the four global leaders
in the elevator and escalator market. We also launched a full line of
UL-certified products, enabling our products to be sold in volume in industrial
markets.”





“In the
third quarter, we transitioned to a focus on building and enabling these large
sales channels to grow long-term sales through leveraged
distribution.  In the vertical transportation market, we commenced
branch-level sales and product training under our OEM
agreements.  This resulted in some initial orders, including to
McCarran International Airport in Las Vegas.  In the industrial
market, we transitioned from a focus on limited direct sales to developing a
network of independent sales representatives.  We also added Scott
Johnson as COO, bringing to the Company a seasoned, sales-focused executive who
has led several motor control and automation companies from limited sales to
tens of millions in sales.”




Outlook





Strasser
concluded, “We are already beginning to see the fruits of our efforts to develop
sales through our OEM agreements in vertical transportation and our independent
sales reps targeting the industrial market.  We have already received
orders in the fourth quarter that, if fulfilled, equal all sales for the third
quarter.  Furthermore, we have already announced the first sale
through the industrial sales rep network.  We anticipate top line
growth as revenues start to flow from our recent OEM agreements with KONE and
ThyssenKrupp, as well as from our expanding sales rep network.  We
also expect to receive a third escalator OEM contract by the year-end
2009.”










“We have
every confidence these OEM and rep network channels will lead to a much higher
volume of sales in both the vertical transportation and industrial markets in
2010. We have also completed the phase out of our analog controllers and
transitioned to a fully digital product line.”





About
Power Efficiency Corporation





Power
Efficiency Corporation is a clean tech company focused on efficiencytechnologies for electric motors. Power
Efficiency is incorporated in Delaware and is headquartered in Las Vegas,
Nevada. The Company has developed a patented and patent-pending technology
platform, called E-Save Technology, which has been demonstrated in independent
testing to improve the efficiency of electric motors by up to 35% in appropriate
applications. Electric motors consume over 25% of the electricity in the U.S.
and many operate inefficiently. E-Save Technology can be licensed to motor,
controls and equipment manufacturers. Power Efficiency’s products, based on
E-Save Technology, include an Industrial Motor Efficiency Controller for three
phase applications, such as escalators, crushers, granulators, mixers, saws and
MG elevators, and a new Appliance Motor Efficiency Controller for small single
phase applications such as residential and light commercial appliances. For more
information, go towww.powerefficiency.com.




For more news and information
on Power Efficiency Corporation, please visitwww.IRGnews.com/coi/PEFFwhere you can find the CEO’s video, a
fact sheet on the company, investor presentations, and more.





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




Forward-Looking
Statements





Statements
contained in this release that are not statements of historical fact may be
deemed to be forward-looking statements. Without limiting the generality of the
foregoing, words such as "may," "will," "expect," "believe," "anticipate,"
"intend," "could," "estimate" or "continue" are intended to identify
forward-looking statements. Readers are cautioned that certain important factors
may affect the Company's actual results and could cause such results to differ
materially from any forward-looking statements which may be made in this release
or which are otherwise made by or on behalf of the Company. Factors which may
affect the Company's results include, but are not limited to, product demand,
market acceptance, impact of competitive products and prices, product
development, completion of an acquisition, commercialization or technological
difficulties, the success or failure of negotiations and trade, legal, social
and economic risks. Additional factors that could cause or contribute to
differences between the Company's actual results and forward-looking statements
include but are not limited to, those discussed in the Company's SEC
filings.








Contacts:
            Power
      Efficiency Corporation


BJ Lackland


CFO


702-697-0377





The
Investor Relations Group


Jason
Strominger  (Investor Relations)


Michael
Crawford (Investor Relations)


Mike
Graff (Public Relations)


212-825-3210