EXHIBIT
99.1





Power
Efficiency Corporation Reports First Quarter 2009 Financial Results





Announces
Signing First OEM Agreement for Digital Motor Efficiency Controller





May 15,
2009 – Las Vegas, NV – Power Efficiency Corporation (OTCBB:PEFF.OB), a clean
tech company focused on efficiency technologies for electric motors, today
announced its first quarter 2009 financial results and updated stockholders
about the company’s progress.





The
Company’s technology platform, called E-Save Technology®, reduces the amount of
electricity used by electric motors that are at times lightly loaded and operate
at a constant speed.  Power Efficiency estimates E-Save Technology has
the potential to save $1.7 billion in electricity a year in industrial
applications in the U.S. alone.





The
Company has developed two products based on E-Save Technology.  One is
a Three Phase Motor Efficiency Controller (MEC), which improves the efficiency
of motors in escalators, elevators, granulators, saws, stamping presses,
conveyors, crushers and many other industrial applications. The second is a
Single Phase MEC, which is targeted at small motors in clothes washers and
dryers, refrigerators, and other appliances and light commercial
equipment.  In 2008 the Company released “digital” versions of these
products that have significantly enhanced features and capabilities over the
Company’s historical analog-based product.  These improvements make
the MEC capable of being adopted by OEMs and other large volume sales
channels.





Steven
Strasser, the Company’s Chairman and CEO, stated, “We are very pleased to
announce we have signed our first contract with a major OEM for our digital
Motor Efficiency Controller to be installed on new equipment as well as
retrofits.  We anticipate making a joint public announcement regarding
this agreement soon.  This agreement was signed after very extensive
lab and field testing and product development work undertaken by both
parties.”





“We are
working hard on additional OEM agreements and expect to have additional
agreements completed in the near future.  The interest of these OEMs
in adopting our technology validates the attractiveness of our Motor Efficiency
Controllers with E-Save Technology.  During the quarter we also signed
an agreement with our first Independent sales representative organization
focused on industrial markets.  This channel has already produced its
first purchase order and we expect continued success working with
them.  Overall, we believe these agreements and partnerships with high
volume OEM and other channels will enable the Company to become a highly
valuable energy technology provider.”





“Although
the economic conditions and the pending approval of our digital product by one
of our largest customers depressed our sales for the quarter, I am very pleased
with our 39% gross margin, including a 52% gross margin on our digital
products.  For building long term stockholder value, this gross margin
and the larger volume agreements and channels are most important.”





Strasser
continued, “The macro environment for our products continues to improve as
energy efficiency rises toward the top of the list of viable solutions to our
global energy and climate change problems.  Saving energy often
provides energy at a very low cost per kilowatt hour and further reduces the CO2
emissions from electricity generation.  If cap-and-trade regulation of
CO2 emissions is enacted, as has been proposed by the Obama Administration and
many members of Congress, our products would provide users an additional cash
flow – emission reduction credits.”





Sales for
the quarter ended March 31, 2009 were $47,147. Net loss for the quarter,
including $569,258 in non-cash expenses related to stock based compensation and
unrealized loss on the fair value of certain outstanding warrants, was
$1,296,341. Also during the quarter ended March 31, 2009, the Company recorded
an accrual of $233,333 related to its preferred stock dividends, which resulted
in a net loss attributable to common shareholders of $1,529,674, or $0.04 per
share.  The Company recorded a gross margin of $18,339, or
39%.  The gross margin on analog units was approximately 36% while the
gross margin on digital units was approximately 52%.










About
Power Efficiency Corporation





Power
Efficiency Corporation is a clean tech company focused on efficiency
technologies 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 first product based on E-Save Technology is a Motor Efficiency
Controller for applications such as escalators, crushers, granulators, mixers,
saws and MG elevators. Power Efficiency is also developing a new product based
on E-Save Technology for the tens of millions of small motors found in
applications such as residential air conditioning, pool pumps, and clothes
dryers. The company is working with manufacturers to incorporate this technology
directly into new motors and appliances.





For more
information go to www.powerefficiency.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
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 SEC filing. Power Efficiency assumes no
obligation to update the information in this release.





Contact:


BJ
Lackland, CFO


Power
Efficiency Corporation


Tel:
702-697-0377