Empower Technologies Second Quarter Report Ended June 30, 2005
- Quarter ended with strong equity position -

Richmond, BC - August 26, 2005 - Empower Technologies Corporation ("The Company" or "Empower") has filed financial statements for the second quarter ended June 30, 2005 .

Empower is a Linux operating software developer for Linux-based embedded system technologies and solutions for the consumer electronics industry. 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 Empower Technologies (Shanghai) Inc. ("Empower Shanghai"). The Company trades on the TSX Venture Exchange under the symbol EPT.

Highlights of the second quarter ended June 30, 2005:

• The Company completed its Prospectus Offering ("Offering"), resulting in the sale of 3,186,370 Units at $2.25 per Unit, for gross proceeds of $7,169,332. The proceeds of Offering will be used primarily to build and expand the business by achieving milestones in product development, sales and marketing, new management positions, and the remaining balance for working capital. Canaccord Capital Corporation acted as agent for the Offering and received a commission of 7.5% of gross proceeds, of which the agent elected to be partially paid in units under the same terms as the Offering.

• The Company officially released its latest LEOsT (LinuxDA Embedded O/S) development platform - LDK5910 optimized for Texas InstrumentsT OMAP5910 dual core CPU. Based on the one-stop shopping concept, LDK5910 encompasses a hardware development board with TI OMAP5910 onboard, LEOs operating software and a software development kit.

• The Company launched its revolutionary new prototype PowerPlay 5.1 Media Chair, at the Electronic Entertainment Expo (E3) in Los Angeles. The PowerPlay Media Chair has a 5.1 surround sound system integrated into the frame, on board digital processing, flexibility with multiple inputs, compatibility with all gaming consoles and a tactile transducer that allows users to not only hear, but feel the action.

• Empower US signed an exclusive worldwide license agreement for sales, marketing and licensing of audio technology. The agreement with Mobile Dynamics Corporation is for exclusive worldwide licensing rights to convert an existing active noise cancellation, acoustic reconciliation and modeling, equalization (EQ) and auto-gain control software audio codec to a TI DSP compatible audio codec or to any other IC (Integrated Circuit) platform.

SIGNIFICANT PROJECTS

LinuxDA Embedded O/S (LEOs)

Empower US has introduced a 32 bit embedded version of LEOs, optimized for the Texas Instruments ("TI") OMAP5910 dual-core processor. LEOs for the OMAP5910 development platform debuts in the Company's next generation of PowerPlay branded consumer devices. LEOs for TI OMAP5910 initiates a new level of performance expectations for intelligent devices with increased headroom for applications and expansion capabilities for other functions.

LDK5910 Development Kit

Empower US is working on a LEOs for TI OMAP5910 Development Kit (LDK5910). This kit will enable electronic manufacturers and developers to develop new products using the TI OMAP5910 dual core processor with LEOs as the operating software. The kit comes with hardware development boards using, TI OMAP5910 and a CD with LEOs and the SDK (Software Development Kit). The manufacturer's suggested retail price is $900 USD.

Osaka Project

With CD, DVD, MP3 and clock radio capabilities, the Osaka Project is a compact, all-digital audio system. Supporting a wide range of sound functions, it integrates all the elements of personal and home audio, in addition to a PDA with QVGA display. Powered by LEOs for the TI OMAP5910 dual core processor, the Osaka Project increases digital audio decoding standards. The Osaka Project fulfils the needs and demands of the cutting edge consumer.

PowerPlay 1x

This new mobile data terminal model is still under development. Besides the regular PDA functions, this new model will have wireless communication capability.

Results of Operations

Revenues generated for the three months ended June 30, 2005 were $468 compared with revenues for the three months ended June 30, 2004 of $13,869. This decrease is attributed to the Company's decision to clear out and to drop all distributed products and end of life product to make way for the new products developed in-house using the Company's embedded technologies including LEOs (LinuxDA Embedded O/S).

The company anticipates revenue to be improved through its plans to: introduce new products using LEOs; move aggressively to set up a strong marketing and sales base in North America; and introduce the new LDK5910 Development Kit.

General and administrative expenses without the stock-based compensation for the three months ended June 30, 2005 increased to $814,834 (2004 - $601,008). Wages and benefits increased to $149,944 (2004 - $87,869), reflecting staff additions in all areas of the company; advertising and promotion increased to $58,365 (2004 - $31,262) due to the company's effort to commercialize its technologies; and travelling expenses increased to $35,885 (2004 - $19,484) due to management's efforts to promote and market products and attending tradeshows.  

About Empower TechnologiesT

Founded in 2000, Empower recently developed a new embedded CPU platform for its LinuxDA. Embedded O/S (LEOsT) based on Texas InstrumentsT OMAP5910 dual core CPU platform. Empower introduced LinuxDAT O/S. Empower was innovative in introducing to the world, LinuxDAT O/S which was the first and only complete Linux Operating System scaled down for the Motorola Dragonball CPU platform that was Palm® Handheld compatible.

By combining top professional, quality partnerships and strategic alliances, Empower is committed to being the leading developer of Linux-based operating software and embedded system technologies and solutions for consumer electronics manufacturers and developers.

Empower's brands are "LinuxDAT" and "LEOsT (www.linuxda.com), Linux-based embedded operating system and "PowerPlayT" (www.powerplaydevices.com) smart consumer electronics.

Contact Information:  

Media Enquiries:

Paul Leung - chairman, President & CEO (604) 278-3100 or pcleung@empowertechnologies.com  

Investor Relations:

Coal Harbor Communications, Suite 900 - 555 Burrard Street, Vancouver, BC V7X 1M8 info@coal-harbor.com Tel (604) 662-4505 Fax: (604) 662-4547 Toll-free: 1+ (877) 642-6200 

More Information on Empower Technologies: www.empowertechnologies.com

LinuxDAT O/S Sales Enquiries: sales@empowertechnologies.com or Tel 425-881-0909

Empower Technologies Corporation

"Paul Leung"

____________________________

Paul Leung

Chairman, 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.  

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

Contact Information:

Media Enquiries:
Paul Leung - Chairman, President and CEO: pcleung@empowertechnologies.com
or via Tel @ (604) 278-3100

More Information on Empower Technologies: www.empowertechnologies.com

LEOs ® Sales Enquiries:
sales@empowertechnologies.com or via Telephone @ 604-278-3100

Paul Leung
Chairman, President and CEO
Empower Technologies Corporation

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.

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