PT Sharpens Its Strategic Business Focus

                   PT Sharpens Its Strategic Business Focus

Company Concentrating on Its High Value-Add Communications Solutions

- Diameter and SS7 Network Signaling & Applications

- Multi-Protocol Communications Gateways & Servers

PR Newswire

ROCHESTER, N.Y., Jan. 10, 2013

ROCHESTER, N.Y., Jan. 10, 2013 /PRNewswire/ -- PT (NASDAQ: PTIX), a leading
global provider of advanced, high availability network communications
solutions, today announced it is sharpening its strategic focus and refining
its business vision. This multi-faceted initiative involves concentrating on
two product families, transitioning away from other product portfolio
elements, and operational expense reductions.

With regard to this initiative, John Slusser, PT president and CEO commented,
"Our announcement today reflects the next phase of our business' evolution
resulting from our detailed analysis of our core competencies and review of
our extensive product portfolio. Given the challenging global economic climate
and dynamics in the vertical markets we serve, we have narrowed our product
portfolio scope and have identified the primary forward-looking market
opportunities that we believe will solidly position our Company for future
growth.

"Our going forward business focus will be on our high value-add network
communications solutions – leveraging our core competencies. In the
telecommunications space, we are building upon our installed customer base for
our SEGway™ SS7 Signaling Systems and our seventeen years of real-world
signaling systems experience. We are particularly pleased with the positive
market reaction for our recently announced SEGway Universal Diameter Router –
our premier Diameter Signaling solution set for next-generation 4G LTE
networks. The Diameter signaling market is projected by industry analysts to
result in an aggregate spend of over $2 billion in the next five years. We
expect to be a key player in this growth market by providing high value
proposition "best-of-breed" solutions and by taking those solutions to the
global market through a combination of strong channel partners and focused
direct sales activities. In the government infrastructure arena, we are
focusing on maximizing the sales of our IPnexus^® Multi-Protocol
IP-interworking solutions. These PT systems have enabled extremely reliable
and highly available radar and sensor communications services over IP networks
- gathering and delivering vital data such as weather, flight tracking, and
ground surveillance. Our presence in air traffic control and defense-related
communications is approaching 4,000 systems deployed in over 30 different
countries. Moving forward, we expect to expand our IPnexus^® Multi-Protocol
Gateways and Servers in military/aerospace applications as well as potentially
enter new emerging markets such as Energy and Smart-Grid. In summary, given
this concentrated product focus, the substantial steps we have taken to reduce
our operating expense levels and our strong and unleveraged balance sheet, we
believe PT is now well positioned for a positive future trajectory as economic
conditions improve."

As part of this strategic realignment, PT began transitioning out of the
general OEM platform business during the fourth quarter 2012. PT will continue
to utilize its own open standards platforms as key elements of its network
communications solutions and maintain a certain number of strategic customers.
This transition includes a last-time buy and build program that will run out
through 2014 for major customers.

The Company has also suspended its own direct sales and development activity
on its Xpress SIP applications product line and in December 2012 entered into
an agreement with an independent value-added reseller for subsequent
Xpress-related sales and support. The Company expects to record an additional
impairment charge in the fourth quarter 2012 amounting to approximately $.8
million relating to this decision.

As of this date, the Company is reducing its personnel by ten employees, or 8%
of its workforce. As a result of this action, the Company expects to incur a
pre-tax restructuring charge for employee-related costs of approximately $.3
million in the first quarter 2013, which will result in cash expenditures.

When combined with the savings from the restructuring PT announced in October
2012, along with other efficiencies the Company has already implemented, the
total cost savings to PT are anticipated to be in the range of $3.2 million to
$3.4 million on an annualized basis, of which $2.5 million to $2.7 million are
expected to be cash flow savings. The Company continues to evaluate the
ramifications of its new strategic direction on its recorded balances of
assets and liabilities including the impact on excess and obsolete
inventories.

About PT (www.pt.com)

PT (NASDAQ: PTIX) is a global supplier of advanced, high availability network
communications solutions. Its SEGway™ Diameter and SS7 Signaling Systems
provide tightly integrated signaling and advanced routing capabilities and
applications that uniquely span the mission critical demands of both existing
and next-generation 4G LTE and IMS telecommunications networks. The Company's
IPnexus^® Multi-Protocol Gateways and Servers enable a broad range of
IP-interworking in data acquisition, sensor, radar, and control applications
for aviation, weather and other infrastructure networks. Established in 1981,
PT is headquartered in Rochester, NY and markets and sells its products
worldwide through its direct sales organization as well as through channel
partners that include major telecommunications equipment vendors, government
prime contractors and value-added resellers.

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. The Company's future operating results are subject to various risks
and uncertainties and could differ materially from those discussed in the
forward-looking statements and may be affected by various trends and factors
which are beyond the Company's control. These risks and uncertainties
include, among other factors, business and economic conditions, rapid
technological changes accompanied by frequent new product introductions,
competitive pressures, dependence on key customers and the potential loss of
key customers, inability to gauge order flows from customers, fluctuations in
quarterly and annual results, the reliance on a limited number of third party
suppliers, limitations of PT's manufacturing capacity and arrangements, the
protection of PT's proprietary technology, errors or defects in our products,
the effects of pending or threatened litigation, the dependence on key
personnel, changes in critical accounting estimates, potential impairments
related to investments, foreign regulations, possible loss or significant
curtailment of significant government contracts or subcontracts, and potential
material weaknesses in internal control over financial reporting. In
addition, during weak or uncertain economic periods, customers' visibility
deteriorates causing delays in the placement of their orders. These factors
often result in a substantial portion of PT's revenue being derived from
orders placed within a quarter and shipped in the final month of the same
quarter. Forward-looking statements should be read in conjunction with the
most recent 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 contained in the Company's Annual
Report on Form 10-K, and other documents filed with the Securities and
Exchange Commission.

PT is a trademark of Performance Technologies, Inc. The names of actual
companies, products, or services may be the trademarks, registered trademarks,
or service marks of their respective owners in the United States and/or other
countries.

SOURCE PT

Website: http://www.pt.com
Contact: Dorrance W. Lamb, SVP and Chief Financial Officer, PT,
+1-585-256-0200 ext. 7276, finance@pt.com
 
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