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Performance Technologies Joins Open Source Development Labs (OSDL) Carrier Grade Linux Working Group

October 23 2006

Performance Technologies (Nasdaq: PTIX), a leading developer of communication platforms and systems and Open Source Development Labs (OSDL), a global consortium dedicated to accelerating the adoption of Linux(R) and open source software, today announced that Performance Technologies has joined OSDL and will participate in the Lab's Carrier Grade Linux (CGL) Working Group to advance support for the telecom and networking markets.


"Linux-based solutions like our award-winning NexusWare(R) Core development environment have helped reduce time-to-market and operating costs for communications platforms for nearly seven years," said John Grana, senior vice president of systems engineering for Performance Technologies. "Performance Technologies' active support of OSDL's Carrier Grade Linux initiative is consistent with our strategy to deliver cost-effective, highly integrated and high-performance solutions, allowing our customers to concentrate on application development and improving time-to-market."


The OSDL Carrier Grade Linux (CGL) initiative started with the vision that communication services will be delivered using open standard carrier grade platforms. A Linux kernel with Carrier Grade characteristics is an essential building block component of such platforms and architectures. Since its formation, the working group has produced three versions of a specification to define these required capabilities.


"Major telecom equipment manufacturers continue to see the benefits of adopting Linux to reduce costs and enable a higher level of flexibility in telecommunications devices," said Bill Weinberg, senior technology analyst for OSDL. "Performance Technologies' support of OSDL's CGL initiative strengthens our work to promote the development and acceptance of highly integrated, Linux-based solutions for use in mission critical applications."


NexusWare Core is a comprehensive, highly integrated, Linux-based development, integration and management environment designed to improve quality and speed time-to-market for system engineers using Performance Technologies' solutions to build packet-based wireless, IMS, IP telephony and defense and homeland security systems.


About Performance Technologies


Performance Technologies (Nasdaq: PTIX) develops platforms and systems for the world's evolving communications infrastructure. Our broad customer base includes global technology companies in the telecommunications, defense and homeland security, and commercial markets. Serving the industry for over 25 years, our complete line of embedded and system-level 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 engineering facilities are located in San Diego and San Luis Obispo, California; and Kanata, Ontario, Canada. For more information, visit http://www.pt.com or contact sales@pt.com.


About Open Source Development Labs (OSDL)


OSDL -- sponsor of Linus Torvalds, the creator of the Linux kernel, and other key developers -- is dedicated to accelerating the growth and adoption of Linux-based operating systems in the enterprise. Founded in 2000 and supported by a global consortium of major Linux customers and IT industry leaders, OSDL is a nonprofit organization that provides state-of-the-art computing and test facilities to developers around the world. With offices in China, Japan and the United States, OSDL sponsors legal and development projects to advance open source software as well as initiatives for Linux systems in telecommunications, in the data center and on enterprise desktops. Visit OSDL on the Web at: http://www.osdl.org/.


OSDL is a trademark of Open Source Development Labs, Inc. Linux is a trademark of Linus Torvalds. Third party marks and brands are the property 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, 2005, as reported in its Annual Report on Form 10-K, and other documents as filed with the Securities and Exchange Commission.


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