Press Release: Performance Technologies and MetaSwitch Partner on Packet-based Softswitch Development

Vendors combine expertise to accelerate time to market, consolidate industry leadership

Rochester, NY: January 10, 2005. Performance Technologies (Nasdaq NM: PTIX), a leading developer of integrated platforms, components and software solutions, and MetaSwitch, the industry's leading independent broadband Class 5 softswitch vendor, today announced a collaborative development partnership for packet-based softswitch technology. By leveraging engineering expertise from both companies, MetaSwitch has already brought its third generation of carrier class softswitch products to market months ahead of the competition, with ongoing joint developments planned to maintain its industry leadership position.

MetaSwitch, which led the industry with the introduction of the first broadband Class 5 softswitch to support TDM as well as voice over ATM and IP over two years ago, selected Performance Technologies based on its system engineering and manufacturing expertise. The companies have established a joint design team, comprising engineers from both organizations, tasked with delivering the industry's leading platform for next generation voice switching.

"Our partnership with MetaSwitch illustrates both the strength of our core embedded technology, and our ability to work with vendors who need more than an off-the-shelf solution," said Don Turrell, president and CEO of Performance Technologies. "Throughout our work with MetaSwitch, we have been impressed by their core hardware design competence and software engineering expertise - a combination that has enabled them to deliver the leading packet-based Class 5 softswitch on the market today."

"Thanks to Performance Technologies' willingness to engage in a collaborative engineering approach, we are delivering solutions customized to our specific requirements months - if not years - faster than if we had tried to build everything ourselves," said Colin Dancer, Senior Director of Hardware Engineering at MetaSwitch. "Most importantly, in a fast-moving industry, we have managed to stay well ahead of our competitors in terms of density, scalability, reliability, and price."

"The fit between our two organizations goes beyond a strong technical partnership," said Turrell. "Both companies were founded in 1981, and since then each has established a position of financial stability based on our shared belief in delivering high quality, standards-based engineering."

About MetaSwitch

MetaSwitch is the industry's leading independent broadband Class 5 softswitch vendor. Its widely deployed VP3500 Series Class 5 Softswitch supports over 100 Class 5 features including CLASS services, IP Centrex, E911, LNP, 1-800, and CALEA, and scales from a few hundred to half a million subscribers. Customers include incumbent and competitive local exchange carriers, as well as operators of broadband wireless, cable, and fiber networks.

MetaSwitch is a division of established telecom technology provider Data Connection (DCL). The company is consistently profitable and privately held, with US locations in California, Virginia, Texas and Florida, and European headquarters in London, UK.

About Performance Technologies

Performance Technologies (Nasdaq NM: PTIX) develops the platforms, components and software solutions for the world's evolving communications infrastructure. Our broad customer base includes companies in the communications, military, and commercial markets. Serving the industry for more than 20 years, our complete line of packet-based products enables equipment manufacturers and service providers to offer highly available and fully-managed systems with time-to-market, performance, and cost advantages.

Performance Technologies is headquartered in Rochester, New York. Additional operational and engineering facilities are located in San Diego and San Luis Obispo, California; Norwood, Massachusetts and Ottawa, Canada. For more information, visit www.pt.com or contact .

Data Connection and MetaSwitch are trademarks of Data Connection Limited and Data Connection Corporation. Brands and products referenced herein are the trademarks or registered trademarks of their respective holders.

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, 2003, 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.