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January 8, 2007 - ROCHESTER, NY - Performance Technologies (NASDAQ: PTIX), a leading developer of communication platforms and systems, today announced that the company's ATC6640 AdvancedTCA™ 10 Gigabit (Gb) Embedded Ethernet Switch was named Product of the Year for 2006 by INTERNET TELEPHONY Magazine.

The ATC6640 is the first base-fabric 10Gb Ethernet switch that fully utilizes all the advanced capabilities of the PICMG® 3.0/3.1 specifications. With a design based on years of experience gleaned from servicing the carrier market, it is the ideal interconnect for network-centric packet and protocol processing typically seen in contemporary wireless and wireline systems. The newest member of Performance Technologies' award-winning line of embedded Ethernet switches, it offers greatly increased platform bandwidth, network performance and reliability in high availability applications including wireless, IPTV, VoIP, media and signaling gateways, telecom switching/routing infrastructure and SS7 network elements.

"The ATC6640 provides telecom equipment manufacturers with the speed and bandwidth they need to develop future-proof systems aimed at emerging application markets, including IPTV, wireless, IMS, and advanced VoIP applications," said John Slusser, president and CEO for Performance Technologies. "Being recognized by INTERNET TELEPHONY is a distinct honor, and that validates our efforts in providing our customers with high availability, fault-tolerant solutions that make application development efforts both cost-effective and more efficient."

"INTERNET TELEPHONY is proud to bestow Performance Technologies with a 2006 Product of the Year Award. Each year INTERNET TELEPHONY magazine recognizes companies that have demonstrated excellence in technological advancement and application refinements," said Rich Tehrani, TMC president and editor-in-chief of INTERNET TELEPHONY magazine. "Performance Technologies has proven they are committed to quality and excellence while addressing real needs in the marketplace. We're proud to honor their hard work and accomplishments and look forward to more innovative solutions from them in the future."

A full list of Product of the Year winners will be published in the February 2007 issue of INTERNET TELEPHONY magazine (www.itmag.com).

For more information about the ATC6640 and other Performance Technologies products, please visit www.pt.com. For more information about TMC and INTERNET TELEPHONY magazine, please visit www.tmcnet.com.    

About Performance Technologies

Performance Technologies (NASDAQ: PTIX) is a global supplier of integrated IP-based platforms and solutions for advanced communications networks and innovative computer system architectures. Our Embedded Systems Group offers robust application-ready platforms that incorporate open-standards based software and hardware, providing significantly accelerated end product deployment benefits for equipment manufacturers. Our Signaling Systems Group offers the SEGway™ product suite, which includes IP STPs, SS7 over IP transport solutions, and signaling gateways that enable lower operating costs through utilization of IP networks, thereby creating competitive advantages for carriers in existing and emerging markets.

Performance Technologies is headquartered in Rochester, New York. Additional engineering facilities are located in San Diego and San Luis Obispo, California, and Kanata, Ontario, Canada.
Forward Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. This press release contains forward-looking statements which reflect the Company's current views with respect to future events and financial performance, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor provisions of those Sections.

These forward-looking statements are subject to certain risks and uncertainties, and the Company's actual results can differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, among other factors, general business and economic conditions, rapid technological changes accompanied by frequent new product introductions, competitive pressures, dependence on key customers, the attainment of design wins and obtaining orders as a result, fluctuations in quarterly and annual results, the reliance on a limited number of third party suppliers, limitations of the Company's manufacturing capacity and arrangements, the protection of the Company's proprietary technology, the dependence on key personnel, changes in critical accounting estimates, potential impairments related to investments, foreign regulations, and potential material weaknesses in the future. Forward-looking statements should be read in conjunction with the audited Consolidated Financial Statements, the Notes thereto, Risk Factors, and Management's Discussion and Analysis of Financial Condition and Results of Operations of the Company as of December 31, 2006, as contained in the Company's Annual Report on Form 10-K, and other documents filed with the Securities and Exchange Commission.

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