• On August 16, Empower introduced LEOs for Texas Instruments' DaVinci™ technology.

• On September 5, the Company joined forces with Global Upholstery (Global) to open the digital furniture market for Empower products. Under this arrangement, the Company licensed Global to manufacture, market and sell Empower's PowerPlay branded 5.1 Pro Media Chair through Global's own sales and distribution channels; and further, Empower and Global will work together to develop and to create new digital furniture that appeals to the professional, office, and healthcare markets.

• On September 18, Empower contracted with Arrow Electronics, Inc. for Arrow to distribute our Linux development kit for Texas Instruments' OMAP™ dual-core processor. Leveraging the performance and DSP/BIOS M Link provided by TI's OMAP™ dual core processors, our development kit runs Empower's LEOs® operating software out of the box and can be leveraged by developers as a powerful design reference for both hardware and software to significantly reduce device development time and cost.

• Earnings per share for the Quarter was (2) cents, compared to (3) cents for the same Quarter in 2006; year to date, earnings per share was (7) cents, compared with (9) cents for the year to September 30, 2006.

• Revenues generated for the Quarter were $17,834 compared with $19,971 for the three months ended September 30, 2006. Year to date, revenues increased to $149,204, an increase of $92,527 compared with 2006. This increase is attributed to our decision to change the sales and marketing team to align with the change in the sales focus from distributed and end of life products to the Company's core enabling embedded technology: LEOs (LunuxDA Embedded O/S) and LDK591x.

• General and administrative expenses without stock-based compensation and R&D costs for Quarter decreased to $414,584 from $560,094 for the three months ended September 30, 2006 due to changes in the sales and marketing team, programs and tradeshow exhibition mixes. Year to date, the decrease was $362,631 from $1,856,441 in 2006 to $1,493,810 in 2007.

• Research and Development costs (“R&D costs”) costs for the Quarter decreased from $353,667 for the quarter ended September 30, 2006 to $270,810. Year to date, to September 30 th , R&D costs were $853,901 compared to $1,091,391 for the nine month period ended September 30, 2006.

• Subsequent to the end of the Quarter, the Company announced our intent to proceed with a Short Form Offering (the “Offering”) to raise up to $2,000,000. The Offering is not subject to any minimum and is to be comprised of up to 2,666,667 units (the “Units”) at $0.75 per Unit, with each Unit consisting of one share and one half warrant. Each whole warrant is exercisable into one common share for a period of two years at $0.90 per share. The warrants will be non-transferable.

• Also subsequent to September 30 th , Empower announced a plan to reprice the 895,000 share purchase warrants (“the Warrants") that currently have an exercise price of $1.25 and expire on February 20th, 2008. The Company proposes to reduce the exercise price to $0.90 per share. T he proposed repricing of the Warrants is subject to TSX Venture Exchange and warrant holders' approval.

• Creating an efficient sales network that will consist of manufacturer's representatives and major electronics and technologies distributors to market and to sell LEOs and LDK platform development kits among developers, manufacturers, value-added resellers, and system integrators.

• Advancing, since April, from zero to five Manufacturers Rep Agencies (approximately equivalent to having at least 10 commissioned salesmen) that have a sales territory covering most of the major technology markets in the United States of America.

• Widening the focus of the Company's sales and marketing efforts from the consumer electronics market to the broader embedded-system market, which includes the automotive, RFID, industrial control and medical devices sectors.

• Accelerating the process of turning Empower customers choosing our technology as their development platforms (“design wins”) into engineered products and the purchase of LEC's when they are ready to go into production.

The increase in revenue to date this year signals that turning design wins into engineered products is progressing well and reinforces the benefits of this marketing strategy.”