Performance Technologies Helps Upgrade FAA’s Weather Alert Systems

Integrated, Robust Solution Improves Efficiencies While Reducing Operational Costs

Press Inquiries

Rochester, NY - October 23, 2007 - Performance Technologies (NASDAQ: PTIX), a leading developer of communication platforms and systems, today announced that its Managed WAN Gateway solutions are to be utilized in the Federal Aviation Administration’s (FAA) Automated Data Acquisition System (ADAS) weather tracking system developed in conjunction with Basic Commerce & Industries, Inc. (BCI) of Moorestown, NJ.

The FAA continuously monitors weather information at all airports, critical for flight operations for the nation’s air traffic control system. As part of the agency’s ADAS program, the new systems from BCI incorporate Performance Technologies’ products to convert and translate weather data, previously transmitted by traditional leased line services, over Internet Protocol (IP). Designed with built-in redundancy for high-reliability, Performance Technologies’ Managed WAN Gateways and integrated WAN protocol software, combined with BCI’s application software, offer the FAA a robust configuration that efficiently acquires the meteorological data and manages the transmission of the updated weather information.

In addition to allowing the new BCI-built ADAS systems to help the FAA reduce costly leased line expenses by using more efficient IP-based solutions, the Performance Technologies’ high availability platforms provide improved reliability, offer remote management capabilities to diagnose systems, decrease maintenance requirements, and reduce spare parts inventory levels through the use of shared common platforms and hardware. Following certification, the Performance Technologies solution will be deployed in BCI systems at 25 locations nationwide in 2008.

The BCI application software performs data acquisition from weather sensors on a one-minute cycle. Sensor data is acquired from Automated Weather Observation Systems (AWOS), Non-federal AWOS, National Weather Service (NWS) Automated Surface Observing Systems (ASOS), Department of Defense (DoD) Automated Observing Systems (AOS), and Automated Weather Sensor System (AWSS). The one-minute observations will, in turn, be distributed to the FAA’s Weather Message Switching Center Replacement (WMSCR) system, the Integrated Terminal Weather System (ITWS), and local IP clients. The BCI application software is configurable using a built-in adaptation program. This allows the same baseline software to be adapted for the local configuration at each site within the National Airspace System (NAS).

"Performance Technologies enables us to provide the FAA with a powerful solution," said BCI Vice President Thomas McParland. "With its advanced, remote management capability for superior performance, the ADAS system from BCI, with Performance Technologies’ Managed WAN Gateway solution, offers a highly efficient way to provide one-minute observations to the current National Airspace System users and to future users of the FAA’s upcoming System Wide Information Management (SWIM) system."

About BCI:

Basic Commerce and Industries, Inc. (www.bcisse.com) is an engineering company that specializes in the areas of Radar, Command & Control, Communications, Weapon Control, Navigation, Computer Networks, Advanced Training Systems, Air Traffic Control, Human Factors Engineering, Ship Systems, and Weather Processing Systems. BCI also provides software and support to its various government and private industry clients in all phases of systems and computer program design, development, and maintenance for the nation’s space, defense, and commercial systems. BCI’s current and previous clients include the U.S. Navy, U.S. Air Force, U.S. Army, Federal Aviation Administration, and several private industry clients including BAE Systems, Raytheon, Lockheed Martin, and ITT.

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 various risks and uncertainties and the Company's actual results could 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, fluctuations in quarterly and annual results, the reliance on a limited number of third party suppliers, limitations of the Company's manufacturing arrangements, the protection of the Company's proprietary technology, the dependence on key personnel, potential delays associated with the purchase and implementation of an enterprise-wide software system and potential impairments of investments. These statements should be read in conjunction with the audited Consolidated Financial Statements, the Notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations of the Company as of December 31, 2006, as reported in its Annual Report on Form 10-K, and other documents as filed with the Securities and Exchange Commission.

Note to Editors: Brand or product names are registered trademarks or trademarks of their respective holders.

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