Lockheed Martin Selects Performance Technologies’ Storage Blade for Royal Navy Submarine Sonar Systems

Press Inquiries

ROCHESTER, NY - January 7, 2008 - Performance Technologies (NASDAQ: PTIX), a leading developer of communication platforms and systems, today announced that Lockheed Martin’s (NYSE: LMT) Undersea Systems business unit has selected the company’s CPC5910 CompactPCI® storage blades for use in an upgrade program for sonar systems onboard Royal Navy submarines.

The CPC5910 is a SATA storage blade that supports 800 GB of RAID capacity. Each blade features two 3.5” enterprise class SATA hard drives that support board-level hot-swap and drive-level hot-swap for complete flexibility and high reliability. The blades are a key element in improving the storage technology used with Royal Navy sonar systems. This upgrading program utilizes Commercial Off-The-Shelf (COTS) products that provide military electronic systems with open-architecture capabilities for easier and more rapid transition to newer technologies.

"This important project win is another example of how our CompactPCI products are effectively utilized in COTS programs by leading manufacturers developing state-of-the-art electronic systems for military as well as aerospace and other defense applications," said Performance Technologies Vice President of Sales and Marketing Edward Bizari.

More information on other aerospace and defense applications using Performance Technologies products can be found at http://www.pt.com/aerospace_defense.html. Additional details on the company’s high-performance, blade level, storage products, including the CPC5900 mass storage sub-systems, can be found at http://www.pt.com/products/prodgroup_storage.html.

System architects needing advanced, compute-intensive embedded solutions can meet with Performance Technologies representatives at several upcoming events including West 2008 in San Diego, CA (February 5-7, 2008, booth 2419), Military & Aerospace Electronics Forum in San Diego, CA (March 11-12, 2008, booth 515), and Embedded Systems Conference Silicon Valley in San Jose, CA (April 15-17, 2008, booth 1445).

About Lockheed Martin (www.lockheedmartin.com)

Headquartered in Bethesda, MD, Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products, and services.

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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