NEWS RELEASE

Empower Technologies™ Third Quarter Report Ended September 30, 2004

- Proceeds of $2,691,773 from exercising of warrants and receipt of the first purchase order
from CompUSA mark third quarter achievements -

Richmond, BC – December 1, 2004 – Empower Technologies Corporation (“The Company or Empower”) has filed the third quarter report ended September 30, 2004.

Empower is a provider of Linux-based embedded system technologies and solutions for the consumer electronics industry and the intelligent appliance market. The Company was incorporated under the Company Act ( British Columbia) on February 21, 2003. The Company operates through its wholly-owned Washington State subsidiary Empower Technologies, Inc. (“Empower US”), and indirectly; Empower Technologies ( Canada) Inc. (“Empower Canada”) and Linux DA ( Shanghai) Inc. (“Empower Shanghai”). The Company trades on the TSX Venture Exchange under the symbol EPT.

Highlights of the Quarter

  • Proceeds of $2,691,773 from the exercising of warrants in the 3 rd quarter.
  • Empower Canada has received the first purchase order from CompUSA of Dallas, Texas to supply the Xbox® 5.1 Surround Sound System. With CompUSA, Empower has added distribution channels of 227 stores in 90 major metropolitan centres and made its first foray into the US. This is in addition to our Canadian distribution channel with Best Buy Canada which has approximately 100 stores across Canada. Empower now has combined distribution channels of 300 plus stores and North America continent-wide coverage.
  • Empower US will introduce the embedded version of LinuxDA™, LinuxDA Embedded O/S (LEOs™), optimized for the Texas Instruments' (TI) OMAP5910 processor. LEOs™ for the OMAP5910 development platform debuts in Empower’s next generation of PowerPlay™ PDA devices, featured at the fifth LinuxWorld Exposition in October.
    The versatility of LEOs™ and the power of the OMAP processor initiate a new level of performance expectations for portable data terminals (PDTs), with increased headroom and speed for applications and expansion capabilities to best suit the needs of businesses, consumers and developers. Combining cutting-edge technology with style, they will be the epitome of form and function for portable data and communication terminals.
  • The Company also has three ongoing significant projects:

New Model to replace PowerPlay Vs

The Company is developing a LinuxDA Embedded O/S personal handheld device (“PowerPlay 1x”) and plans to introduce the new model when available later this year or early next year.

Joint development with Spherex Inc.

Empower US and Spherex Inc. are jointly working on a confidential development project which will have the licensed LinuxDA Embedded Operating System on board and will also contain the licensed Spherex Optimized Surround Sound technology.

Introduction of LinuxDA Embedded O/S (LEOs)

Empower US will introduce the embedded version of LinuxDA, called LinuxDA Embedded O/S (LEOs™), optimized for the Texas Instruments (TI) OMAP5910 processor. LEOs™ for the OMAP5910 development platform debuts in Empower’s next generation of PowerPlay™ PDA devices, featured at the fifth LinuxWorld Exposition in Frankfurt, Germany in October 2004.

Results of Operations

Revenues generated for the nine months ended September 30, 2004 were $139,128 compared with revenues for the nine months ended September 30, 2003 of $1,263. This drastic increase is attributed to the sales of PowerPlay Vs to Best Buy Canada and the sales of Spherex X-Box® 5.1 surround sound systems in the period.

The gross margin for the 3rd quarter is higher than the 2nd quarter due to the lower quantity of products returned and the new sales of distribution products.

General and administrative expenses for the nine month period ended September 30, 2004 increased to $2,195,961 (2003 - $289,034). Research and development expenses increased due to the Company accelerating its effort to develop new products and the re-opening of the Shanghai office. Wages and Benefits and Office Expense increased to $246,403 (2003 - $108,103) with additions of new staff in all areas of the Company; Advertising and Promotion increased to $133,522 (2003 - $8,346) and Traveling Expenses increased to $55,600 (2003 - $9,519) due to management’s efforts to promote and market its products.

 

About Empower Technologies

Founded in 2000, Empower Technologies 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 LinuxDA 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.

 

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.

Empower Technologies, LEOs, PowerPlay and LinuxDA are the trademarks of Empower Technologies, Inc. All other brands are trademarks of their respective owners.