According to the docket, on March 17, 2003, the Court entered the Order granting the motion for preliminary approval of the settlement. A settlement fairness hearing was set for July 1, 2002. The fairness hearing was held, and on July 9, 2003, the Court entered the Order and Final Judgment signed by U.S. District Judge David G. Larimer. The settlement was approved and the case was closed.

By the Notice of Pendency of Class Action, the settlement fund was in the amount of $1,000,000 in cash.

In a press release dated September 25, 2002, Performance Technologies, Inc. (Nasdaq NM: PTIX), a global supplier of innovative communication and networking equipment, today announced it has signed a Memorandum of Understanding for settlement of the class action litigation filed against the Company and a number of its directors and officers in May 2000. On and after May 24, 2000, multiple class action lawsuits were filed against the Corporation, as well as several of its officers and directors. Those lawsuits were subsequently consolidated into one action. The terms of the settlement outlined in the memorandum between the Company and the class action plaintiffs are being submitted to the Court in the form of a settlement agreement. This proposed settlement will be subject to Court acceptance and approval. Although the Company had modest Director and Officer insurance coverage, the charge to Company's earnings related to this agreement will be less than$150,000. This charge will be recorded in the Company's third quarter 2002 operating period.

The original complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial condition and future growth. Specifically, the complaint alleges that on April 26, 2000, the Company reported seemingly positive financial results for the first quarter of 1999, creating the impression that substantial growth would continue. However, the statement was false when made because the defendants knew, or were reckless in not knowing, that a significant shipment to a customer was delayed and two large orders were decreased for the second quarter. As a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. When the truth about the Company was revealed, the price of the stock dropped significantly.