The Korean based JV Company, to be called H-Plus PAC, will develop, manufacture, and commercialize back-up power systems for the Korean and Asian markets, using zinc air fuel cell ("ZAFC") stacks supplied by Power Air Corporation as the power source. H-Plus Eco will contribute up to KRW 5 Billion to the JV and Power Air will license its zinc air fuel cell technology to the JV Company.

"Signing the Joint Venture Letter of Intent is an important milestone for Power Air's Asian strategy," states Mr. Remy Kozak, President and CEO of Power Air. "Now that the business terms have been defined and agreed on, we can focus on regulatory approvals, start-up, and execution."

Under the terms of the LOI, Power Air Corporation and H-Plus Eco Ltd., a subsidiary of H-Plus Group, will complete the binding Joint Venture Agreement within six months. The Joint Venture Agreement will include a shareholder agreement, a license agreement, a territory agreement, and a supply agreement for the supply of Power Air's zinc air fuel cell stacks to the JV for use within the back-up power products. The parties have appointed a Management Team to establish the JV entity in Korea and the JV business plan.

"H-Plus has completed its technical and market research and we are committed to commercializing ZAFC powered products in the Asian territories," states Mr. Jahong Hur, President, CEO, and Founder of H-Plus Group. "Our extensive relationships and experience in key Asian markets such as Japan, China, India and Malaysia means that the Joint Venture's products can be quickly deployed into these rapidly growing markets."

Initial applications will include portable back-up generators followed by Telecom and UPS back up power. Power Air and H-Plus plan to demonstrate the Prototype Generator at the Fuel Cell Expo 2007 in Tokyo, Japan on February 8, 2007.

"H-Plus brings an attractive combination of capital, market expertise, manufacturing capability and distribution networks to our Asian business development efforts," adds Donald Ceci, VP Sales and Marketing at Power Air. "Our product offering complements their focus on delivering alternative energy solutions across Asia."

About H-Plus Group

H-Plus group is composed of four companies (H-Plus Eco Ltd, H-Plus Bio Ltd., H-Plus Clean Air World Ltd., and H-Plus Specialty Gas Supply Ltd.) whose main business is focused on the environment and alternative energy. H-Plus Group is aiming to be a total environment solution provider.

About H-Plus Eco Ltd.

H-Plus Eco Ltd. was founded in Nov. 2000 and is a leading company in environmental consulting, engineering and construction for contaminated soil and wastewater in Korea. H-Plus has an excellent business network with refineries, engineering companies and motor companies in Korea such as GS Caltex, GSE&C and Hyundai/Kia Motors. Recently H-Plus Eco has started business with Reliance and HPCL in India and FPC in Taiwan.

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.