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Empower Technologies™ Reports 2007 Results

April 29, 2008, Richmond, British Columbia - – Empower Technologies Corporation (TSX-V: EPT) today reported its financial results for the year ended December 31, 2007. Empower (or “the Company”) is a Linux-based embedded system technologies and solutions provider for the embedded computing industry.

Highlights for the year ended December 31, 2007 (the “Year”), updated to April 28, 2008, include:
o Revenues for the Year approximately doubled to $194,786, compared with $85,138 for the year ended December 31, 2006.

o Losses for the Year were $3.9 million, compared with $4.2 million for the year ended December 31, 2006.

o Cash used in operating activities declined to $3.0 million from $3.8 million for the year ended December 31, 2006.

o The Company announced a new sales and marketing initiative in early 2007 whereby it embarked on a major expansion of its strategy of marketing and selling its core technology, LEOs, and the associated platform development kit “LDKxxxx.” The new strategy expanded the Company's sales and marketing focus from the consumer electronics market to the broader embedded-system market, which includes the automotive, RFID, industrial control and medical devices sectors. To execute this strategy, Lee Faulk, with vast sales experience in the hardware and software businesses within the computer industry, joined Empower's team as Director of Sales and Marketing for embedded system technologies.

o Added five field sales companies to greatly increase the visibility of Empower Technology products in the embedded market within strategically important territories. With their established customer base, these representative firms allow Empower to do deep market penetration both quickly and effectively.

o Signing of a software development license agreement and a strategic partnership agreement with Navigon Inc. This partnership is advancing and integrating infotainment, driving safety and navigation technologies in the automotive and transportation industries.

o Granting by the US Patent Office of a patent for a pen-based (or stylus-based) handwriting recognition method for computing devices. The patent is for an improved system and method for pen-based handwritten and keystroke data input into a computer system (such as a smart phone or a tablet computer with pen/stylus-based handwriting input capability). The system and method receives pen-based data entry from multiple related input boxes within a handwriting area on a digitizer pad. Character strokes entered into each input box or group of input boxes are saved and interpreted together to allow more complete recognition of naturally written characters. Improvements on keyboard layouts are also disclosed.

o Launch of a new line of development kits for 2008 with the EDK (Empower Development Kit), which replaces the successful LDK (LEOs Development Kit) series. The existing LDK591x series continues to be available. The first in the EDK series is the EDK6446 development kit for Texas Instruments' (TI) dual-core TMS320DM6446, DM6443, and DM6441 DaVinci™ technology processors. The EDK6446 will help designers accelerate the development of digital video applications such as portable media players, set top-boxes, industrial handheld/tablets, video security and surveillance, automotive infotainment systems and video telephony.

o Launch of three new portable navigation devices (PND) to meet the demands of the dynamic GPS market in North America . All three new models feature a large 4.3” widescreen LCD touch panel:
o P2000 - the basic model features navigation and bluetooth hands-free;
o P2200 - the photo unit that includes our basic unit's features plus a built-in camera; and
o P2800 - the executive unit that includes our basic unit's features, plus a wireless back up camera and iPodPTMP remote connectivity.
o Signed a Volume Software Licensing Agreement with Navigon. The Agreement enables Empower’s new P2xxx line of PND’s, to ship with Navigon navigation software loaded in each unit. This agreement integrates Navigon’s leading edge navigation software with Empower’s latest automotive grade navigation software platform – “Euler”. Euler integrates a wide range of features besides navigation such as media player for MP3 and video, digital camera, photo viewer, iPodPTMP remote access connectivity and rearview wireless camera. NAVIGON’s navigation software delivers an intelligent, premium navigation experience with features like intuitive menus, 2D or 3D maps, spoken turn-by-turn directions and street names via advanced text to speech, Lane Assistant and Automatic Speed Warnings as well as millions of pre-loaded points of interest.

“It was a solid year of development, building for sales anticipated in 2008 and beyond.” said Paul Leung, Empower’s Chairman, President & CEO. “We anticipate revenue to continue to improve through the new sales and marketing strategies that Empower has devised during the course of our marketing transition:

o Creating an efficient sales network consisting of manufacturer’s representatives and major electronics and technologies distributors to market and to sell LEOs, LDK and EDK platform development kits among developers, manufacturers, value-added resellers and system integrators.

o Advancing to five Manufacturers Rep Agencies (approximately equivalent to having at least 10 commissioned salesmen) that have a sales territory covering most of the major technology markets in the United States of America.

o Widening the focus of the Company’s sales and marketing efforts from the consumer electronics market to the broader embedded-system market, which includes the personal navigation device, RFID, industrial control and medical devices sectors.

o Accelerating the process of turning Empower customers choosing our technology as their development platforms (“design wins”) into engineered products and the purchase of our hardware and software solutions and licenses.

The increase in revenue in 2007 signals that turning design wins into engineered products is progressing well and reinforces the benefits of this marketing strategy. We are working hard on a number of projects and expect payback on these efforts in the form of product orders in 2008.”

The consolidated financial statements and the Company’s Management Discussion and Analysis (‘MD&A’) as at December 31, 2007, were prepared in accordance with Canadian generally accepted accounting principles. The full statements and MD&A are available on SEDAR (www.sedar.com).

 


About Empower Technologies™

Founded in 2000, Empower Technologies (TSX.V: EPT) is an innovative company that brings the power and flexibility of the LEOs® (LinuxDA™ Embedded Operating System) to the dynamic embedded computing Industry and the emerging Intelligent Appliance Market, through their development of Linux-based operating software, embedded system technologies and solutions.

The products and services that form the base of its business activities include an embedded system development platform for LEOs®, based on Texas Instruments™ embedded CPU platform, that fulfill the needs and demands of developers and the embedded computing Industry. Empower is continuing to develop LEOs® and newer versions of embedded CPUs in line with Texas Instruments™.

By uniting top professionals from within the computer industry and developing quality partnerships and strategic alliances, Empower is committed to being the leading developer of Linux-based operating software and embedded system technologies and solutions for electronics manufacturers and developers.

Empower's brands are “LEOs®”, “LinuxDA™”, Linux-based embedded operating systems and “PowerPlay™”, smart consumer electronics.

Contact Information:

Media Enquiries:
Paul Leung – Chairman, President and CEO: pcleung@empowertechnologies.com
or via Tel @ (604) 278-3100

Investor Relations:
Exponent Communications Inc.
Toll-free: (866) 914-5861
Tel: (604) 625-1185
Fax: (604) 625-1186

Email:  info@exponentcommunications.com

More Information on Empower Technologies: www.empowertechnologies.com
Sales Enquiries: sales@empowertechnologies.com or via Tel @ (604) 278-3100

Paul Leung
Chairman, President and CEO

Empower Technologies Corporation
# 405-5600 Parkwood Way
Crestwood Commerce Centre
Richmond , BC , Canada V6V 2M2

The statements contained in this news release that are not historical facts are forward looking statements.  Such statements are based on management's estimates, assumptions and projections using available information.  The company cautions that actual financial results could differ materially from the current expectations due to a number of factors.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release.

Empower Technologies, LEOs, PowerPlay and LinuxDA are the trademarks of Empower Technologies, Inc. All other brands are trademarks of their respective owners.

 


© 2007 Empower Technologies