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Productivity Technologies Corp. Announces Results For Fiscal Year

2 October 2000

Productivity Technologies Corp. Announces Results For Fiscal Year Ending June 2000, Personnel Changes, And the Intent to Purchase A North American Auto Parts Producer

    ANN ARBOR, Mich., Sept. 29 Productivity Technologies Corp.
announced today its consolidated operating results for its
fiscal year ending June 30, 2000.
    The Company reported sales of $33.23 million for fiscal 2000, a 2.3%
decrease compared to $34.00 million for the fiscal year one year ago.  Gross
profit decreased to $6.90 million in the fiscal year compared to $9.39 million
in fiscal 1999 in part as a result of higher costs of production and changes
in the mix of production.
    The net loss in fiscal 2000 was $0.10 per share, compared to net income
per share of $0.40 in the fiscal year ending June 30, 1999.  Operating results
include approximately 18 weeks from Westland Control Systems, Inc., which PTC
purchased on February 23, 2000.
    The PTC Board has directed certain cost reductions at Atlas and further
initiatives to improve performance are being reviewed.
    Atlas continues to experience frustration in its European expansion plan,
having stepped aside this month from acquiring a company, after signing
definitive purchase documents on September 9, 2000, when the subject company
reported losses and the sudden unexpected departure of a key executive.  As a
result, Atlas' current emphasis for expansion in Europe is to arrange joint
ventures, alliances, and sub-contracting agreements.
    PTC also is in the final stages of interviewing for the hiring of a Vice
President of Operations.  The hiring, which is expected to be finalized early
in the second fiscal quarter, will help reinforce and improve management at
PTC's subsidiaries and will assist PTC with further acquisition and
acquisition integration efforts.
    In this connection, PTC is pleased to announce that on September 19, 2000,
the Company signed a letter of intent to purchase 100% of the capital stock
outstanding of a North American based automotive parts manufacturer.  The
Seller utilizes specialized internally developed machinery believed to be
proprietary in the manufacture of its products.  Latest year revenues and
operating earnings before depreciation were $52.6 million and $7.7 million,
respectively.  The Seller's backlog, based upon firm orders and consensus
third party projections of annual North American automobile production,
currently exceeds U.S. $200 million.  The transaction is subject to due
diligence, financing, and board approval.
    The following table summarizes the Company's fiscal year ended June 30,
2000 results versus those for the fiscal year ended June 30, 1999.

                            Year Ended June 2000     Year Ended June 1999

    Net Revenues                $33,230,195              $34,001,248

    Cost of Revenues             26,334,826               24,609,631

    Gross Profit                  6,895,369                9,391,617

    Operating Income                436,897                1,865,169

    Pre-Tax Income/(Loss)          (619,280)               1,074,290

    Net Income (Loss)              (256,280)                 974,290

    Basic & Diluted EPS (undiluted)  ($0.10)                   $0.40

    Weighted Average Shares
     Outstanding                  2,475,000                2,475,000