Power Air Signs Memorandum of Understanding for Generator Fuel Supply and Recycling

LIVERMORE, Calif., Feb. 6, 2007 -- Power Air Corporation (BULLETIN BOARD: PWAC) today announced the signing of a Memorandum of Understanding with Autobotics, Inc. ("Autobotics") of Brooklyn Park, Minnesota.

Under the terms of the Agreement, Autobotics will collaborate with Power Air to set up a North American based company to supply, distribute, and recycle the zinc and electrolyte required to fuel the world's first indoor generator.

"Through this agreement the distribution model will be defined to supply competitively priced fuel to power our first commercial products in North America", states Mr. Remy Kozak, President and CEO of Power Air. "Recycling of the zinc-oxide ("ZnO") produced by our product not only completes the "green" cycle but also significantly reduces costs of operation."

Power Air intends to commercialize its exclusive Zinc Air Fuel Cell (ZAFC) technology worldwide and has already signed several partnering agreements related to distribution of zero-emission, back-up power generators suitable for indoor and outdoor use. End-users will fuel these indoor capable generators with non-flammable, non-explosive, non-polluting zinc fuel and electrolyte. Under the terms of the MOU, Power Air and Autobotics will generate a business plan for the creation of a separate fuel supply and recycling company, and finalize the structure and ownership of the new entity.

"Partnering with Power Air represents a tremendous business opportunity for Autobotics," states Mr. Walter Walczak, President and CEO of Autobotics, Inc. "The cost differential between recycling Zinc and producing "fresh" Zinc from mines combined with the huge potential back-up power markets that Power Air is addressing make this a very lucrative segment to get into now. "

"The recycling, or processing, of zinc oxide, into zinc metal, is a potentially sustainable, high volume, opportunity for the global zinc industry," states Johan Van Wesemael, Manager, Technology & Market Development, International Zinc Association. "The ability to re-cycle and re- use the same fuel provides a competitively priced, sustainable energy source."

The Zinc Energy Storage Consortium ("ZESTec") has previously stated that "the availability of zinc as a fuel source, and the ability to recycle the ZnO, pose no limitations to the adoption of zinc fuel cell technology. Zinc is a known global commodity. Zinc fuel cells convert commercially available zinc products into zinc oxide, a known secondary feed material for existing zinc smelters. With a global transportation infrastructure and processing technology available around the world, facilities are easily accessible for recycling."

"North America is looking for alternate fuel solutions that are green, sustainable, non-polluting, safe, and will reduce our independence on foreign fossil fuels," adds Mr. Walczak. "We intend to provide this solution."

About Autobotics, Inc.

Autobotics, Inc. is a North American based company specializing in providing manufacturing solutions, including production, packaging, and automation, to help companies be competitive and successful in today's world manufacturing environment.

About International Zinc Association ("IZA")

The International Zinc Association (IZA) (http://www.zincworld.org/) is a non-profit organization, based in Brussels, Belgium, representing the world zinc industry. IZA provides a forum for the zinc industry to address global issues through collaborative efforts in Sustainable Development, Technology & Market Development, Environment and Communications. In addition, research capabilities in the product, environmental and health areas for zinc are provided through the International Lead Zinc Research Organization (ILZRO).

About ZESTec

ZESTec promotes the application and market development for all types of zinc based energy storage systems for a range of end uses from automotive to portable power, for consumer and business use. Membership of the ZESTec consortium includes Zinc Producers (Xstrata, Horsehead, Grillo, Industrias Peņoles, TeckCominco, and Zinifex) and Zinc Energy System Manufacturers (eVionyx, PowerZinc and Power Air Corporation). The activities of the Consortium are being coordinated through the International Zinc Association.

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.

For further information please call +1-925-960-8779 or visit our website at http://www.poweraircorp.com/.

Investor Relations call +1-866-734-7026 or e-mail to investors@poweraircorp.com.

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