Empower Technologies Third Quarter Report Ended September 30, 2003

Richmond, BC – December 1, 2003 – Empower Technologies Corporation (“Empower Corp”) has filed the third quarter report ended September 30, 2003.

In this quarter, Empower Corp completed its initial public offering (“IPO”) on September 19, 2003. The common shares and the warrants issued in the IPO of Empower Corp commenced trading on the TSX Venture Exchange on September 23, 2003 under the symbol EPT with respect to the common shares and under EPT.WT with respect to the warrants.

As a condition of the IPO and pursuant to a merger agreement, Empower Corp and Empower Technologies, Inc. (“Empower US”) agreed to carry out a merger involving the acquisition of 100% of the outstanding shares of Empower US in exchange for an equivalent number of common shares of Empower Corp. The merger was carried out by way of a merger of ET Merger Corporation, a wholly-owned U.S. subsidiary of Empower Corp, with Empower US.

Legally, Empower Corp is the parent of Empower US. However, as a result of the share exchange described above, control of the combined companies passed to the former shareholders of Empower US. This type of share exchange, referred to as a “reverse takeover”, deems Empower US to be the acquirer for accounting purposes.

Empower Corp raised gross proceeds of $1,705,988 from the IPO. The share issuance costs totaled $183,410, resulting in net proceeds from the IPO of $1,548,756. Deferred acquisition costs of $190,074 were included in capital stock as issuance costs after the completion of the IPO and the merger in the 3-month period ending September 30, 2003.

Below is an extract of Empower Corp’s Consolidated Balance Sheet Ended September 30, 2003 (Unaudited – Prepared by Management):

On August 27, 2003, Empower Corp announced Empower US had signed a Joint Development Agreement (the “Definitive Agreement”) with Audio Products International Corporation (“API”) to jointly develop a new consumer audio appliance that will utilize API’s latest Omnipolar speaker technology and Empower US’s LinuxDA embedded operating system technology. API and Empower US will cross license each other’s respective technologies to manufacture and to market the audio appliance.

The audio appliance will be manufactured and sold by API under its selective brands. Empower US can OEM and/or license the audio appliance to selective consumer electronic manufacturers to sell under their own labels. Empower US and API intend to launch the audio appliance in the spring of 2004.

Below is an extract of Empower Corp’s Consolidated Statements of Operations and Deficit for the 3 month period ended September 30, 2003 (Unaudited - Prepared by Management):

Empower US continued to sell its products through its own product website with minimal promotional efforts. Empower US focused the majority of its marketing and sales efforts to solicit consumer electronics manufacturers to license its LinuxDA O/S product solutions and to solicit major retailers and developers to OEM, integrate or resale its PowerPlay PDA embedded with LinuxDA O/S. Revenues generated during the 3-month period ended September 30, 2003 were $414. Gross loss for such period was ($29,388). The negative gross margin was due to the efforts of Empower US to provide discounted samples to potential consumer electronics manufacturer licensees. Through these efforts, Empower US and its subsidiary Empower Technologies (Canada) Inc. (“Empower Canada”) have successfully signed two sale contracts with Finite Technology Inc. and Best Buy Canada Ltd.

Operating expenses for the 3-month period ended September 30, 2003 were $28,946. In particular, management and consulting fees, office expenses and travel expenses were $13,037 for the 3-month period ended September 30, 2003. Accounting and legal expenses were $26,245 for the 3-month period ended September 30, 2003. Empower Corp incurred the majority of such legal and accounting fees due to its Initial Public Offering in order to list on the TSX Venture Exchange. Amortization of assets under capital leases was $2,115 for the 3-month period ended September 30, 2003. Wages and benefits were $40,210 for the 3-month period ended September 30, 2003. Advertising and promotion expenses were $3,417 for the 3-month period ended September 30, 2003. Bank charges and interest expenses were $2,745 for the 3-month period ended September 30, 2003. Over the 3-month period ended September 30, 2003, Empower Corp maintained its operating costs to a low level so that it could achieve product development and commercialization milestones.

The net loss for the 3-month period ended September 30, 2003 was $29,326. Loss per share for the 3 month period ended September 30, 2003 was $0.01 per share.

Management believes that operating and administrative costs will start to rise in the coming fourth quarter due to new sales activities and the regulatory reporting requirements by the securities commissions and the TSX Venture Exchange.

Deferred development costs increased $235,374 to $1,786,153 as at September 30, 2003 compared to $1,550,779 as at December 31, 2002. Development costs incurred in the period reflect the continued research and development of the LinuxDA O/S, PowerPlay products and the joint audio appliance development project with API. Deferred development costs are recorded at cost and are amortized upon commencement of commercial sales on a straight line basis over a period not exceeding three years. Empower Corp will reassess whether it has met the relevant criteria for deferral and amortization and whether there is any impairment in value at each reporting date.

Management believes the deferred development costs will increase incrementally in the coming quarter as the development of new products intensifies.

Overall, Empower Corp has made major progress in financing by way of an IPO. Empower Corp has also met the initial goal to secure key customers to roll out its products and technologies in the consumer electronics industry. Empower Corp will continue to develop new products for its targeted customer groups and to promote its two brands – “PowerPlay” and “LinuxDA” as the premium household name in smart consumer electronic products and Linux base embedded operating systems.

About Empower Technologies

Founded in 2000, Empower Technologies (TSX.V:EPT) is a provider of Linux-based embedded system technologies and solutions for the consumer electronics industry and the intelligent appliance market.

Empower is an innovative company that introduced to the world Linux DA O/S, the first and only complete Palm® Handheld compatible Linux Operating System scaled down for the Motorola Dragonball CPU platform. By uniting top professionals from within the computer industry and developing quality partnerships and strategic alliances, Empower is committed to being the leading provider of Linux-based embedded system technologies and solutions for consumer electronics manufacturers.

Empower’s brands are “LinuxDA” (www.linuxda.com) a Linux-based embedded operating system and “PowerPlay” (www.powerplaydevices.com) smart consumer electronics.

CONTACT INFORMATION

Media Enquiries:
Paul Leung - President & CEO. 604-278-3100 or pcleung@empowertechnologies.com
LinuxDA O/S Sales Enquiries: sales@empowertechnologies.com or Tel 425-881-0909
PowerPlay Product Sales Enquiries: sales@powerplaydevices.com or Tel 425-881-0909
More Information on Empower Technologies Inc: www.empowertechnologies.com

Empower Technologies Corporation
Paul Leung
President & CEO

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.

Palm is a trademark of Palm, Inc. PowerPlay and LinuxDA are the trademarks of Empower Technologies, Inc. All other brands are trademarks of their respective owners.