Productivity Technologies Corporation Obtains Chinese Contract

    ANN ARBOR, Mich., March 7 Productivity Technologies
Corporation , announced today that its operating subsidiary
Atlas Technologies, Inc. has received a contract from BaoSteel in Shanghai,
Peoples Republic of China, worth approximately $2 million in revenues.  The
contract, for upgrading a cold rolling line which processes automotive quality
sheet metal, will consist of three (3) high-speed Magnetic Stackers.

    According to Samuel N. Seidman, PTC CEO,  "This order is a follow-on order
to earlier business with BaoSteel, the largest steel producer in China.  We
are pleased to be chosen to provide this critical equipment, which creates the
stacks of sheet metal at the end of one of their cut-to-length lines.  This is
the second major order Atlas has received within approximately one week.  We
believe the company is seeing important evidence of the beginning of a turn in
operations.  With this order and other recently received orders, the company's
backlog is now at levels consistent with past periods of higher revenues."