Performance Technologies Receives Product of the Year Awards for its CPC4400 Ethernet Switching Platform and MicroLegend® 4000 Series SS7/IP Signaling Gateway

Press Inquiries

ROCHESTER, NY - January 9, 2001 - Performance Technologies, Inc. (Nasdaq: PTIX), a leading provider of a packet-based telecom and networking products, today announced the selection of both its model CPC4400 carrier-grade Ethernet switching platform and its MicroLegend® 4000 Series SS7/IP Signaling Gateway as "Products of the Year" by Technology Marketing Company (TMC), publisher of Internet Telephony® and Communications Solutions™ magazines. These prestigious awards recognize Performance Technologies as an innovator in developing break-through products for packet-based networking and communications.

"We are honored that two of PTI's newest products have received Product of the Year awards," said Don Turrell, CEO of Performance Technologies. "These awards further confirm our position as a preferred supplier of innovative products critical to next-generation communications and IP telephony applications."

The model CPC4400 switching platform is a member of PTI's recently introduced IPNexus® family and represents the market's first carrier-grade, Layer 3 Ethernet switch in a 6U CompactPCI® form factor. This advanced product has been designed to operate in demanding embedded telecom environments and includes an IP packet switched backplane architecture to further improve reliability and performance. This architectural concept was developed by PTI and is currently being standardized within the PCI Industrial Computer Manufacturers Group.

PTI's next-generation MicroLegend 4000 Series Signaling Gateway is the first SS7/IP signaling gateway designed to meet the stringent reliability, performance and international interoperability demands of Internet telephony, wireless and advanced communication service providers. It provides seamless integration of SS7 signaling between existing public switched signaling networks and next-generation IP packet telephony systems for both 3G wireless and wireline applications.

"As the next-generation telecommunications equipment industry matures, we're finding more than just products and services on the market -- entire solutions are being offered," said TMC president and group publisher Rich Tehrani. "The Internet Telephony and Communications Solutions Product of the Year awards allow us to honor exemplary products such as the CPC4400 embedded Ethernet switch and MicroLegend 4000 Series Signaling Gateway, while helping our readers sort through the vast proliferation of choices in the marketplace."

About Performance Technologies, Inc

Performance Technologies, Inc. is a leading supplier of innovative telecommunications and networking products that enable the convergence of wireline, wireless and next-generation Internet protocol networks. The company provides enabling carrier-grade technology solutions, including telecom connectivity products, Ethernet switching products and Signaling System 7/IP interworking solutions to network operators, equipment manufacturers and systems integrators worldwide.

PTI is headquartered in Rochester, New York. Additional engineering facilities are located in Raleigh, North Carolina; San Diego, California; and Ottawa, Canada. For more information about Performance Technologies, visit www.pt.com.

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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 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 or unexpected changes in technologies, cancellation or delay of customer orders including those relating to design wins, changes in the product or customer mix of sales, delays in new product development, customer acceptance of new products and customer delays in qualification of products. 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, 1999, as reported in its Annual Report on Form 10-K and as of March 31, 2000, June 30, 2000 and September 30, 2000, as reported in its Form 10-Q, as filed with the Securities and Exchange Commission.