Layer8 Technology Uses Performance Technologies' IPnexus Products for Mission-Critical Military Applications

ROCHESTER, N.Y. - October 28, 2003 - Performance Technologies (Nasdaq NM: PTIX), a leader in unified systems design for the communications, industrial and military markets, today announced Layer8 Technology is using several of the company's IPnexus® packet-switched platform products. Layer8 performs custom integration, installation, maintenance and repair of computer networks and systems within governmental defense and commercial entities.

Layer8 is using Performance Technologies' IPnexus platforms, including the AMP5085 platform, the CPC4406 Ethernet switching products and the ZT 5524e single board computer, for the integration of software applications with existing military applications such as command and control systems, data distribution and analysis, and field communications.

The Performance Technologies IPnexus products offered us a rugged and reliable platform by which to introduce packet-based technology into military applications," said George Koepplinger, president of Layer8 Technology. "Coupled with their Intel-based single board computer, we are able to provide a complete and deployable applications environment.

"The communications and control portion of the military market is an important sector for us," said Ed Bizari, director of marketing for Performance Technologies. "We have a long history of providing industry-leading products for demanding fault-tolerant applications, and we look forward to extending that with the systems being deployed by Layer8."

Performance Technologies' full range of IPnexus Advanced Managed Platforms, embedded hardware products and NexusWare™ software products, all compatible with the PICMG® 2.16 specification, offer a high availability, open standard solution for mission-critical, packet-based applications.

About Layer8

Layer8 Technology offers customers the design, installation, maintenance and repair of computer software for military applications such as command and control systems, data distribution and analysis, and communications, and the integration of such computer software with existing computer systems in the field of communications, instrumentation, and analysis.

While our main customers are governmental entities such as the Missile Defense Agency (formerly known as the Ballistic Missile Defense Organization), we also provide these services to commercial entities for such applications as, multi-media centers and remote monitoring and control capabilities. For more information, visit www.layer8technology.com.

About Performance Technologies

Performance Technologies (Nasdaq NM: PTIX) is a leading developer of unified embedded computing products and system-level solutions for the communications, military and commercial markets. Serving the industry for over 20 years, our packet-based products enable equipment manufacturers and carriers to provide highly available and fully-managed systems with time-to-market, performance and cost advantages.

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, 2002, 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

Layer8 Technology Uses Performance Technologies' IPnexus® Products for Mission-Critical Military Applications