EXHIBIT
99.1





POWER
EFFICIENCY ANNOUNCES FIRST QUARTER 2010 RESULTS





Company
Reports Significant Increase in Revenues and Orders





LAS VEGAS, NV – May 17, 2010 –
Power Efficiency Corporation (OTCBB: PEFF), a clean tech company focused on
energy efficiency technologies for electric motors, reported financial and
operating results today for the three months ending March 31, 2010.





Highlights
for First Quarter 2010:





·
            Increased
      revenue to $110,030, a 133% increase over the first quarter of
      2009.


·
            Increased
      orders to more than $200,000, representing a 425% increase over the first
      quarter of 2009 and a 70% increase over the fourth quarter of
      2009.


·
            Net
      loss was reduced to $282,368 (or $0.01 per share) for the first quarter of
      2010 versus a net loss of $1,143,406 (or $0.03 per share) in the first
      quarter of 2009.


·
            Cash
      used for operations was reduced from $891,634 in the first quarter of 2009
      to $515,075 in the first quarter of
2010.


·
            Signed
      first global escalator OEM
agreement.


·
            Signed
      agreements with several industrial distributors, including Minarik
      Automation and Control, a national distributor with 60 external
      representatives.


·
            Signed
      a distribution agreement with Macel Ingeniería de Elevación S.L. (Macel
      Elevation Engineering) focused on the escalator and elevator market in
      Spain and Portugal.


·
            Announced
      notable installations on escalators at Washington Dulles International
      Airport (IAD) and the U.S. Capitol Visitor
  Center.


·
            Announced
      the Company’s first major project in Asia; installations on escalators at
      three resort properties owned by the Las Vegas Sands Corp. - The Venetian
      Macao, Sands Macao and The Four Seasons Hotel
  Macao.





Steven
Strasser, Chairman and CEO of Power Efficiency stated, “During the first quarter
of 2010, Power Efficiency gained traction.  Revenues are beginning to
grow and orders for our digital products are increasing. We extended our reach,
both domestically and internationally, through new OEM and distribution
agreements.  Additionally, we had several high profile escalator
installations, which help to stimulate broader interest in our
products.”





“Over the
past several months, we have seen strengthening demand in the escalator OEM and
retrofit market.  Our OEM partners are bidding more and more projects
incorporating Motor Efficiency Controllers with E-Save
Technology®.  During the first quarter, we also strengthened our
relationships with these OEMs, including signing our first global OEM
agreement.”








“Regarding
the industrial market, we began building an independent sales representative and
distributor network after receiving Underwriters Laboratory (UL) certification
last summer. This network is beginning to produce more regular order flow,
including initial sales to some very large companies with the potential to buy
more product. These sales have included installations on a number of new
applications for our technology, including a glass crusher, wood chipper,
distribution center conveyors, and a chip maker in a food processing
center.”





“At the
end of the quarter, the Company’s cash balance was $31,205. Since that time, the
Company has closed on an offering of notes for $1.05 million. I personally
invested $200,000 in this offering. I believe my continued investment in the
Company is the strongest statement I can make about my belief and confidence in
the Company’s future prospects.”





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 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 to
www.powerefficiency.com.





Safe
Harbor


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 products in
the market; success in technology and product development; and all the risks and
related information described from time to time in SEC filings, including the
financial statements and related information contained in SEC filings. Power
Efficiency assumes no obligation to update the information in this
release.





Contact:


Power
Efficiency Corporation


BJ
Lackland, CFO


Tel:
702-697-0377





or





The
Investor Relations Group


Jason
Strominger (Investor Relations)


Mike
Graff (Public Relations)


212-825-3210