Productivity Technologies Wins Mexico Order, Backlog at Record High Level

    ANN ARBOR, Mich., April 2 Productivity Technologies Corp.
, announced today that Atlas Technologies, Inc., one of its
operating subsidiaries, has been awarded an order, among other orders, of
approximately $900,000 to provide Die Change equipment to a major Mexico
based automotive supplier.  Including backlog from both operating
subsidiaries, PTC backlog approximates $21.9 million, a new company record.
    According to Samuel N. Seidman, PTC Chairman, "Atlas' business level has
been depressed and operating losses have resulted during recent periods, but
the rapid pace of new orders is encouraging.  Atlas' backlog is now at its
highest point since being acquired by PTC in 1996 based on recent orders from
South America, Mexico, and Asia, and a large domestic contract from a Big
Three automotive manufacturer.  Record high orders during the third fiscal
quarter, including a $3 million letter of intent to order from a Brazilian
auto supplier, account for approximately $16 million of the current Atlas
backlog approximating $21.5 million.  Atlas inquiry and quotation activity is
also at a high level of $156 million, partially due to additional sales
representatives and distributors."
    "Thankfully, this increase in backlog was accompanied by reasonably long
delivery schedules, allowing Atlas to ramp up to the demand during the next
few quarters.  Although still in an uncertain market, we hope we will continue
to see strong orders in the near term, in part due to Atlas' development of
critical relationships with key companies located around the world.  These
allegiances will assist in broadening Atlas' market reach and improving its
ability to provide complete solutions for its customers, especially with
larger turnkey projects," according to James A. Kolinski, Atlas CEO.
    Headquartered in Fenton, Michigan, Atlas makes automated stamping press
systems, equipment, and tooling for automotive, appliance, and other
manufacturers.  Productivity Technologies Corp. is an Ann Arbor, Michigan
based investment holding company involved in the factory automation equipment
industry.  Its operating subsidiaries are Atlas Technologies and Westland
Control Systems, a control panel supplier to machinery and equipment
manufacturers.
    Cautionary Statement Under the Private Securities Litigation Reform Act of
1995: Statements of this Press Release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995 that are based on the beliefs of the company and its management.
Any statements contained herein which are not historical facts or which
contain the words expect, believe, project, estimate, seek, anticipate,
could, may, and similar statements shall be deemed forward-looking
statements.  The Company may be unable to realize its plans and objectives due
to various important factors.  These factors include but are not limited to
the potential softening of the domestic and foreign markets for automobiles,
automotive parts, and appliances, resulting in reduced demand for the
Company's automation equipment; potential technological developments in the
metal forming and handling automation equipment markets which could render
the Company's automation equipment noncompetitive or obsolete; and the
potential tightening of credit availability generally or under the Company's
credit facility, which may render the Company unable to access needed working
capital.