Power Air Corporation CEO Issues Mid-Year Corporate Update

LIVERMORE, CA, Aug 05 (MARKET WIRE) --
Donald Ceci, President and Chief Executive Officer of Power Air
Corporation (OTCBB: PWAC), the clean energy zinc power company, today
issued a formal corporate update detailing the status of its technology
and product development and commercialization initiatives.

Ceci stated, "Power Air remains committed to becoming a commercially
viable fuel cell company. In this regard, we have identified noteworthy
market opportunities for our technology and products, and have made
significant progress on our commercialization efforts. We expect to
announce our Power Air Branded Powerpacks and have them available for
sale and distribution at the 2009 CES (Consumer Electronics Show) in Las
Vegas, Nevada, which begins January 8, 2009."

Strategy: Power Air has the opportunity to replace Batteries (Primary and
Rechargeable) and Internal Combustion Engines.

-- Short Term (current to 24 mos.):
-- Powerpacks (Primary zinc air and rechargeable lithium*) for Mobile
Electronic Devices
-- Indoor Powerpacks for emergency, recreational and remote use
-- Primary single zinc air cells for OEM-ready product integration

-- Medium Term (24 - 48 mos.):
-- Rechargeable zinc air* Powerpacks for Mobile Electronic Devices
-- Hybrid Indoor Generators for emergency, recreational and remote use
-- Rechargeable single zinc air cells for OEM-ready product integration

-- Long Term (48 - 72 mos.):
-- Rechargeable zinc air Powerpacks for Hybrid Electric Vehicles
-- UPS & Telecom back-up power
-- Zinc Air Fuel Cells (ZAFC) for Indoor Generators and Fuel Cell
Vehicles

Each of the above applications represents significant revenue
opportunity for Power Air.

*The Company is contemplating Power Air-branded commercialization of both
Primary and Rechargeable Zinc Air Powerpacks. As the primary zinc air
technology is now ready for commercialization, Power Air will use zinc air
as the power source for its Primary Powerpacks. For the Rechargeable
Powerpacks, the Company intends to use lithium rechargeable technology in
the short term, and zinc air rechargeable technology in the medium term.

Technology Development: Power Air continues to develop its technology and
Intellectual Property base as follows:

-- Air Cathode
-- Non-rechargeable -- for Primary Powerpacks & ZAFC Indoor Generator
-- Reversible -- for Rechargeable Zinc Air Powerpacks
-- Reversible -- for Hybrid Electric Vehicles
-- Single Cell for OEM-ready product integration -- Mobile devices
-- Multiple Cell for Notebook Chargers
-- Hybrid Generator (ZAFC/Zinc Nickel battery) for Rechargeable &
Refuelable Indoor Generator
-- ZAFC technology development for fuel cell Indoor Generator and Fuel
Cell Vehicles

Intellectual Property: Power Air has filed the following Provisional
Patents and expects to continue to build its base of protected
Intellectual
Property:

-- Electrolyte Life Extension
-- Recharger for Portable Devices

Product Development: Power Air intends to begin short term
commercialization in the fourth quarter of 2008:

-- Z Series Primary & Rechargeable Powerpacks & Cells
-- Primary Pocket Chargers (Primary Zinc Air)
-- Pocket Charger & Key Chain Chargers (Rechargeable Lithium)
-- Notebook Charger (Rechargeable Lithium)
-- Zcell power source for OEM-ready product integration -- Mobile
Devices (Primary Zinc Air)
-- Notebook Charger (Primary Zinc Air)

-- Indoor Generator:
-- Indoor Powerpacks (Rechargeable)
-- Indoor Hybrid Generator (ZAFC/Zinc Nickel battery -- rechargeable
& refuelable)

Manufacturing, Testing and Certification: Power Air's 2008
manufacturing, testing and certification activity is as follows:

-- August -- 200 Alpha Prototype units of its Zinc Air Primary Pocket
Powerpack
-- August -- 200 Beta Prototype units of its Lithium rechargeable
Powerpack
-- September/October -- 2,000 Alpha Prototype units of its Zinc Air
Primary Pocket Powerpack
-- November -- 1,000 Beta Prototype units of its Zinc Air Primary Pocket
Powerpack

Pre-Market Launch Preparation: Assuming successful testing and
certification, Power Air intends to introduce its first Primary and
Rechargeable Powerpacks in 2008 for sales and distribution beginning in
January 2009. In anticipation of the commercial launch at CES, the Company
is soliciting feedback from consumer focus groups and selected
distributors in August/September.

Funding Activities: In May 2008, the Company completed a private placement
of its common stock raising gross proceeds of $1.5 million from H-Plus Eco
Ltd., a Korean environmental company founded and led by a member of Power
Air's Board of Directors. The Company intends to raise additional growth
capital in the fourth quarter of 2008 to support:

-- Tooling, manufacturing and inventory of Powerpacks being commercially
launched
-- Sales, marketing and distribution of new products
-- Primary and Rechargeable Air Cathode development projects
-- OEM-ready single ZCell development
-- Product development, including testing and certification
-- On-going ZAFC technology development

In closing, Ceci added, "The next several months are going to be both
very exciting and challenging for Power Air. I look forward to issuing
further updates so that our progress can be efficiently monitored and
effectively measured."

About Power Air Corporation

Headquartered in Livermore, California with offices and research
facilities in Vancouver, B.C., Power Air is a forward-thinking clean
energy company engaged in commercializing proprietary, high performance
Zinc Air Fuel Cell (ZAFC)-based products for the mobile electronics,
portable and stationary power generation, light mobility and
transportation markets. Power Air holds the exclusive worldwide license
for the development and commercialization of products utilizing ZAFC
technology pioneered through an extensive joint collaboration effort with
Lawrence Livermore National Laboratory and the United States Department
of Energy. For more information, please visit www.poweraircorp.com.

This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "expect" or similar expressions. These statements
are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements inherently
involve risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Factors that would cause
or contribute to such differences include, but are not limited to,
acceptance of the Company's current and future products and services in
the marketplace, the ability of the Company to develop effective new
products and receive regulatory approvals of such products, competitive
factors, dependence upon third-party vendors, and other risks detailed in
the Company's periodic report filings with the Securities and Exchange
Commission. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or
changes after the date of this release.

FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
ELITE FINANCIAL COMMUNICATIONS GROUP, LLC
Dodi Handy
President & CEO
407-585-1080
via email at PWAC@efcg.net

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