Friday, July 21, 2006

PWAC: Power Air Engages TerraNova Capital as Agent for $5 Million Institutional Placement

(OTCBB:PWAC) today announced that it has signed an agency agreement with TerraNova Capital Partners, Inc. of New York to raise an institutional round of up to $5 Million. The agreement allows for some limited exclusivity in North America.

Since becoming publicly traded via a reverse merger in October 2005, Power Air has raised $4 Million from sophisticated investors who are convinced of the commercial potential of its exclusive Zinc Air Fuel Cell (ZAFC) technology.

'Having achieved all of our early targets, Power Air's Board is now confident that we are ready for the more extensive diligence of Institutional investors,' states Remy Kozak, President and CEO of Power Air. 'TerraNova came highly recommended as an equity raising partner by FBP Capital, the group that advised us on our first two private placements.'

Power Air recently signed an OEM Partnering agreement with Schrader- Bridgeport for collaboration on an Emergency Back-up Generator replacement product for the North American market. The Company continues to develop its core ZAFC-stack through extensive testing and rework of the design.

'Power Air is precisely the type of company we look to work with,' adds Andre Schwegler, Managing Director, Public Capital Markets for TerraNova Capital. 'With oil prices still going up, Power Air's alternative-fuel technology has attracted a lot of positive attention. Add to that a well- defined product and market with defensible advantages and the Company appears to have a very bright future.'

About Power Air Corporation

Power Air Corporation, with head office in Livermore, California, is engaged in the business of developing, manufacturing and marketing fuel cell based commercial products. Power Air has the exclusive worldwide license to zinc-air fuel cell technology that has been developed at the Department of Energy's Lawrence Livermore National Laboratory, in Livermore, California, for all fields of use (portable, stationary, light mobility and transportation applications) and commercialization.

About TerraNova Capital Partner, Inc.

TerraNova Capital Partners, Inc. is a merchant investment firm and private placement specialist that arranges private equity and debt financings through TN Capital Equities, Ltd., a licensed broker-dealer and member of the NASD. TerraNova maintains excellent relationships with a global network of institutional investors and high-net-worth individuals that are active in today's markets for both public and private companies. Through a private equity fund, the TerraNova Explorer Fund I, they are able to make direct investments in both private and public companies that are in need of equity and/or bridge financing.

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