SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K


                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



Date of report (Date of earliest event reported)         December 10, 1999

Performance Technologies, Incorporated
--------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)


        Delaware                           0-27460                  16-1158413
--------------------------------------------------------------------------------
(State or Other Jurisdiction        (Commission                 (IRS Employer
of Incorporation)                          File Number)     Identification No.)


          315 Science Parkway, Rochester, New York 14620
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                          (Zip Code)


Registrant's telephone number, including area code    (716) 256-0200

   N.A.
--------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)


<PAGE>


Item 5.  Other

        On December 10, 1999, the Registrant,  through its wholly-owned Canadian
subsidiary,  3688283 Canada Inc. ("Sub"),  acquired  MicroLegend Telecom Systems
Inc., a corporation  existing under the laws of Canada  ("MicroLegend"),  by the
acquisition  of all of the  outstanding  shares of capital stock of  MicroLegend
(the "Acquisition").  The Acquisition was accomplished  pursuant to that certain
Share  Acquisition  Agreement,  dated as of December  2, 1999,  by and among the
Registrant, Sub, MicroLegend,  Thomas Blain and Reginald T. Cable (the principal
shareholders  of  MicroLegend)  and  the  transactions  contemplated  thereunder
(collectively,  the "MicroLegend  Acquisition  Agreements").  As a result of the
Acquisition,  Sub became the owner of 100% of the issued and outstanding  shares
of capital stock of MicroLegend in exchange for 2,165,732 exchangeable shares of
Sub (the "Exchangeable  Shares"), each of which is exchangeable for one share of
the  Registrant's  Common  Stock.  As of the  closing  date,  the  shares of the
Registrant's Common Stock to be delivered to former MicroLegend  shareholders in
exchange for the Exchangeable Shares were valued at approximately $43.6 million.
MicroLegend  became  a  wholly-owned  subsidiary  of  Sub  as a  result  of  the
Acquisition. The terms of the MicroLegend Acquisition Agreements were the result
of  arm's-length  negotiations  among  the  parties.  The  Acquisition  will  be
accounted for as a "pooling of interests."

        A total of  2,165,732  shares  of the  Registrant's  Common  Stock  will
ultimately  be issued to former  MicroLegend  shareholders  in exchange  for the
acquisition  by Sub of all of the issued and  outstanding  shares of MicroLegend
capital stock. The Exchangeable  Shares issued to the MicroLegend  shareholders,
and the shares of the  Registrant's  Common Stock ultimately to be issued to the
MicroLegend shareholders,  were and will be issued pursuant to an exemption from
registration provided by Section 4(2) of the Securities Act of 1933, as amended.

        The Acquisition  capitalizes on the expertise and unique capabilities of
both  organizations  in the rapidly  growing market for  interconnecting  public
switched telephone networks and Internet Protocol (IP) networks.  The Registrant
is  recognized  as a premier  supplier  of wide  area  networking  hardware  and
protocol  software  solutions used by  telecom/datacom  integrators and original
equipment  manufacturers  worldwide.   Additionally,  its  enterprise  switching
products  provide  non-stop  LAN  switching   capabilities  in  mission-critical
application environments demanding "round-the-clock" 24x7 operation.

        MicroLegend is a leading global SS7 internetworking provider focusing on
major  telecommunications  carriers  and  "next-generation"  service  providers,
selling  its  SS7  signaling   gateways,   which  readily   accommodate   custom
applications  and  new  protocol  variants.  MicroLegend  develops  and  markets
innovative products for telecommunications signaling networks. It specializes in
SS7 gateway products that resolve  interworking  problems  between  incompatible
communications networks. MicroLegend provides signaling interoperability between
ANSI SS7,  ITU-T C7 and many  national  variants used in Japan,  China,  Brazil,
Mexico  and  Europe.   MicroLegend's   customers   include   telecom   equipment
manufacturers such as Alcatel and Nortel Networks, wireless and wireline network
operating  companies  such  as  Aerial  Communications,  Bell  Canada  and  GTE,
innovative IP based telecommunications solutions provider Simplified Telesys and
next  generation  network  operators.  The  Registrant  intends to continue  the
various  businesses of MicroLegend.  MicroLegend's  headquarters  are located in
Ottawa,  Ontario,  with an  additional  development  facility in Raleigh,  North
Carolina.

   Item 7. Financial Statements , Pro Forma Financial Information and Exhibits

(a)      Financial Statements of Business Acquired

               Not Applicable

(b)      Pro Forma Financial Information

               Not Applicable

(c)      Exhibits:

(20.1) Press Release of the Registrant,  dated December 2, 1999,  announcing the
Registrant's agreement to acquire MicroLegend.

(20.2) Press Release of the Registrant,  dated December 13, 1999, announcing the
completion of the Registrant's acquisition of MicroLegend.



<PAGE>


                                   SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                     Performance Technologies, Incorporated


December 10, 1999                    By:      /s/ Donald L. Turrell
                                     ------------------------------
                                                  Donald L. Turrell
                                     President and Chief Executive Officer


December 10, 1999                    By:      /s/ Dorrance W. Lamb
                                     --------------------------------
                                                  Dorrance W. Lamb
                                           Vice President of Finance

<PAGE>


EXHIBIT INDEX

DESCRIPTION OF DOCUMENT

Exhibit Number


(20.1) Press Release of the Registrant,  dated December 2, 1999,  announcing the
Registrant's  agreement  to acquire  MicroLegend.

(20.2) Press Release of the Registrant,  dated December 13, 1999, announcing the
completion of the Registrant's acquisition of MicroLegend.


Exhibit 20.1 Press Release of the Registrant, dated December 2, 1999, announcing
the Registrant's agreement to acquire MicroLegend


Performance Technologies to Acquire MicroLegend Telecom Systems



       Accelerates PTI's strategy to capitalize on explosive opportunities
            in the Internet driven telecommunications marketplace

ROCHESTER,  New York --  December  2,  1999 --  Performance  Technologies,  Inc.
(NASDAQ:PTIX)  today  announced it has entered  into a  definitive  agreement to
acquire  privately held  MicroLegend  Telecom Systems Inc., an Ottawa,  Ontario,
Canada-based  innovator of advanced signaling system 7 (SS7)  telecommunications
gateway products.  SS7 is the  technological  basis for such common functions as
caller ID, 800/900 service and cellular roaming.  Performance  Technologies will
issue approximately 2,166,000 shares of its common stock to acquire MicroLegend.
Based on today's closing price, the transaction is valued at approximately $43.6
million.

The acquisition  leverages the expertise and core competencies of both companies
in the rapidly growing market for interconnecting SS7 and Internet protocol (IP)
telephony  networks.  SS7/IP  interoperability  is a  critical  requirement  for
next-generation  Voice-over-IP networks and existing  public-switched  telephone
networks to manage voice calls and access value-added  services across networks.
The  acquisition  also broadens PTI's SS7 product  portfolio and strengthens its
popular  Channel7 SS7 platform by adding support for  higher-level  applications
delivered by PTI  customers,  including  original  equipment  manufacturers  and
value-added resellers.

Accounting  for the  acquisition  of  MicroLegend  as a "pooling of  interests,"
Performance  Technologies  expects to record a one-time after-tax charge for the
expenses  associated with the transaction of approximately $1.9 million, or $.14
per share in the fourth  quarter.  The transaction is subject to various closing
conditions and is expected to close on or before December 31, 1999.

"This  agreement  represents  another  major step in PTI's  strategy  to address
opportunities in the exploding Internet-driven  telecommunications marketplace,"
said Donald  Turrell,  president and CEO of Performance  Technologies.  "PTI and
MicroLegend  currently have no overlapping  customers or technologies,  and this
acquisition will significantly enhance our collective capabilities. Together, we
now have the opportunity to provide our customers with innovative solutions that
capitalize on the switching and signaling technologies of both companies."

"We are very excited about this new relationship.  It provides expanded services
to our customers  and affords  growth  opportunities  for both our employees and
investors," said Reg Cable,  president of MicroLegend.  "Our SS7 and IP software
products  are  an  excellent  fit  with  PTI's  hardware   platforms,   creating
significant targeted opportunities in the SS7 marketplace."

Performance   Technologies,   spanning  the  enterprise  and  telecommunications
integrator  markets,  is  recognized  as  the  premier  supplier  of  wide  area
networking  hardware and  protocol-software  solutions  used by  telecom/datacom
integrators  and original  equipment  manufacturers  worldwide.  Its  enterprise
switching   products  also  provide  non-stop  LAN  switching   capabilities  in
mission-critical application environments,  especially for the emerging Internet
service providers (ISPs) who demand "'round-the-clock," 24x7 operation.

MicroLegend is the leading global SS7 internetworking provider focusing on major
telecommunications carriers and "next-generation" service providers, selling its
SS7 signaling  gateways,  which readily  accommodate custom applications and new
protocol variants.  MicroLegend  currently has 44 employees.  In its fiscal year
ended July 31, 1999,  MicroLegend  recorded revenue of approximately $5 million,
an increase of 88% over its fiscal 1998 revenue.

"As we enter  the new  millennium,  traditional  circuit-switched  equipment  in
public telephone networks needs to communicate  effectively with packet-switched
equipment in data networks  worldwide,"  said Turrell.  "As the transition to an
`all-packet'  network unfolds, the SS7 signaling protocol will be heavily relied
upon. PTI and MicroLegend are well prepared for this  convergence of traditional
voice networks and IP-based data networks,  ready to capitalize on the growth of
new  service-provider  offerings  such  as  Voice-over-IP  and  virtual  private
networks."

In March 1998,  PTI announced a stock  repurchase  program  pursuant to which it
allocated up to $5 million to reacquire shares of its common stock. To date, PTI
has  repurchased  approximately  120,000  shares  at  a  cost  of  $760,000.  In
connection  with the acquisition of MicroLegend and prior to the closing of that
transaction,  PTI will be repurchasing up to an additional  55,000 shares of its
common stock in the open market.  After  completing  that  repurchase,  PTI will
discontinue its current stock repurchase program.

Performance  Technologies,  Inc.  is  headquartered  in  Rochester,  N.Y.,  with
regional sales and support  facilities near Hartford,  Connecticut,  Chicago and
the United  Kingdom,  as well as co-located  sales and  communications  software
development operations in San Diego, California.  PTI designs,  manufactures and
markets  a  wide  variety  of  high-performance  networking  and  communications
solutions.  The company's  products  target  high-performance,  mission-critical
networking   solutions   in   industries   such  as   telecommunications,   data
communications,  financial  services,  defense  and  transportation.  PTI  is  a
publicly traded company (NASDAQ: PTIX). Visit PTI's Web site at www.pt.com.

MicroLegend's  headquarters is located in Ottawa, with an additional development
facility in Raleigh, North Carolina. MicroLegend develops and markets innovative
products  for  telecommunications  signaling  networks.  It  specializes  in SS7
gateway  products  that  resolve  interworking   problems  between  incompatible
communications networks. MicroLegend provides signaling interoperability between
ANSI SS7,  ITU-T C7 and many  national  variants used in Japan,  China,  Brazil,
Mexico  and  Europe.   The  company's   customers   include  telecom   equipment
manufacturers such as Alcatel and Nortel Networks, wireless and wireline network
operating  companies  such  as  Aerial  Communications,  Bell  Canada  and  GTE,
innovative IP based telecommunications solutions provider Simplified Telesys and
next   generation   network   operators.   Visit   MicroLegend's   Web  site  at
www.microlegend.com.

The  statements  contained in this press release that are not purely  historical
are  forward-looking  statements  within  the  meaning  of  Section  21E  of the
Securities and Exchange Act of 1934, as amended,  including statements regarding
Performance  Technologies'  expectations,   beliefs,  intentions  or  strategies
regarding the future.  Forward-looking  statements include statements  regarding
the completion of the acquisition of MicroLegend  Telecom Systems,  the benefits
to be derived from the merger of the two  companies,  the  integration  of their
technologies  and  product  offerings,   and  future  sales  to  customers.  All
forward-looking  statements included in this document are based upon information
available to Performance  Technologies  as of the date herein,  and  Performance
Technologies   assumes  no  obligation   to  update  any  such   forward-looking
statements.  Forward-looking  statements involve risks and uncertainties,  which
could cause actual results to differ materially from those projected. These, and
other risks relating to Performance Technologies' business, are set forth in the
documents  filed by  Performance  Technologies  with the Securities and Exchange
Commission,  including  the Annual Report on Form 10-K, as of December 31, 1998,
and the more recent  reports on Form 10-Q, and the other reports filed from time
to time with the Securities and Exchange Commission.





Exhibit  20.2  Press  Release  of  the  Registrant,  dated  December  13,  1999,
announcing the completion of the Registrant's acquisition MicroLegend

Performance Technologies Completes MicroLegend Telecom Systems Purchase



   Acquisition Capitalizes on Complementary Expertise and Capabilities of Both
            Companies in the Exploding Internet-driven Marketplace



ROCHESTER,  New York -- December  13,  1999 --  Performance  Technologies,  Inc.
(NASDAQ:PTIX)  today  announced it has  completed  the  purchase of  MicroLegend
Telecom   Systems   Inc.,   an  Ottawa,   Ontario-based   provider  of  advanced
telecommunications  gateway products,  finalizing the various closing conditions
of the definitive  agreement announced by the Company on December 2, 1999. Under
the terms of the all-equity acquisition,  PTI has issued approximately 2,166,000
shares of its common stock currently valued at approximately $43.6 million.

      "With the consummation of this acquisition,  Performance Technologies,  in
conjunction with the MicroLegend  organization,  can  aggressively  proceed on a
variety of exciting new opportunities and projects that address the requirements
of the exploding telecommunications marketplace,  including wireless roaming and
Voice  over  IP,"  said  Donald  Turrell,   president  and  CEO  of  Performance
Technologies.

      This acquisition  capitalizes on the expertise and unique  capabilities of
both  organizations  in the rapidly  growing market for  interconnecting  public
switched    telephone    networks   and   Internet   Protocol   (IP)   networks.
Interoperability  is a critical  requirement for  next-generation  Voice-over-IP
networks  and  existing  telephone  systems  to manage  voice  calls and  access
value-added services across the combined networks.

      Performance  Technologies  is recognized  as the premier  supplier of wide
area networking hardware and protocol software solutions used by telecom/datacom
integrators and original equipment manufacturers  worldwide.  Additionally,  its
enterprise  switching  products provide  non-stop LAN switching  capabilities in
mission-critical  application  environments  demanding  "'round-the-clock"  24x7
operation.

      Performance Technologies,  Inc. is headquartered in Rochester,  N.Y., with
regional sales and support  facilities near Hartford,  Connecticut,  Chicago and
the United  Kingdom,  as well as co-located  sales and  communications  software
development operations in San Diego, California.  PTI designs,  manufactures and
markets  a  wide  variety  of  high-performance  networking  and  communications
solutions.  The company's  products  target  high-performance,  mission-critical
networking   solutions   in   industries   such  as   telecommunications,   data
communications,  financial  services,  defense  and  transportation.  PTI  is  a
publicly traded company (NASDAQ: PTIX). Visit PTI's Web site at www.pt.com.

          MicroLegend  is  the  leading  global  SS7  internetworking   provider
focusing on major  telecommunications  carriers  and  "next-generation"  service
providers.  MicroLegend's  headquarters is located in Ottawa,  Ontario,  with an
additional development facility in Raleigh, North Carolina.  Visit MicroLegend's
Web site at www.microlegend.com.
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SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported)         December 10, 1999

Performance Technologies, Incorporated
--------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)

        Delaware                           0-27460                  16-1158413
--------------------------------------------------------------------------------
(State or Other Jurisdiction        (Commission                 (IRS Employer
of Incorporation)                          File Number)     Identification No.)

          315 Science Parkway, Rochester, New York 14620
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                          (Zip Code)

Registrant's telephone number, including area code    (716) 256-0200

   N.A.
--------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Item 5.  Other

        On December 10, 1999, the Registrant,  through its wholly-owned Canadian
subsidiary,  3688283 Canada Inc. ("Sub"),  acquired  MicroLegend Telecom Systems
Inc., a corporation  existing under the laws of Canada  ("MicroLegend"),  by the
acquisition  of all of the  outstanding  shares of capital stock of  MicroLegend
(the "Acquisition").  The Acquisition was accomplished  pursuant to that certain
Share  Acquisition  Agreement,  dated as of December  2, 1999,  by and among the
Registrant, Sub, MicroLegend,  Thomas Blain and Reginald T. Cable (the principal
shareholders  of  MicroLegend)  and  the  transactions  contemplated  thereunder
(collectively,  the "MicroLegend  Acquisition  Agreements").  As a result of the
Acquisition,  Sub became the owner of 100% of the issued and outstanding  shares
of capital stock of MicroLegend in exchange for 2,165,732 exchangeable shares of
Sub (the "Exchangeable  Shares"), each of which is exchangeable for one share of
the  Registrant's  Common  Stock.  As of the  closing  date,  the  shares of the
Registrant's Common Stock to be delivered to former MicroLegend  shareholders in
exchange for the Exchangeable Shares were valued at approximately $43.6 million.
MicroLegend  became  a  wholly-owned  subsidiary  of  Sub  as a  result  of  the
Acquisition. The terms of the MicroLegend Acquisition Agreements were the result
of  arm's-length  negotiations  among  the  parties.  The  Acquisition  will  be
accounted for as a "pooling of interests."

        A total of  2,165,732  shares  of the  Registrant's  Common  Stock  will
ultimately  be issued to former  MicroLegend  shareholders  in exchange  for the
acquisition  by Sub of all of the issued and  outstanding  shares of MicroLegend
capital stock. The Exchangeable  Shares issued to the MicroLegend  shareholders,
and the shares of the  Registrant's  Common Stock ultimately to be issued to the
MicroLegend shareholders,  were and will be issued pursuant to an exemption from
registration provided by Section 4(2) of the Securities Act of 1933, as amended.

        The Acquisition  capitalizes on the expertise and unique capabilities of
both  organizations  in the rapidly  growing market for  interconnecting  public
switched telephone networks and Internet Protocol (IP) networks.  The Registrant
is  recognized  as a premier  supplier  of wide  area  networking  hardware  and
protocol  software  solutions used by  telecom/datacom  integrators and original
equipment  manufacturers  worldwide.   Additionally,  its  enterprise  switching
products  provide  non-stop  LAN  switching   capabilities  in  mission-critical
application environments demanding "round-the-clock" 24x7 operation.

        MicroLegend is a leading global SS7 internetworking provider focusing on
major  telecommunications  carriers  and  "next-generation"  service  providers,
selling  its  SS7  signaling   gateways,   which  readily   accommodate   custom
applications  and  new  protocol  variants.  MicroLegend  develops  and  markets
innovative products for telecommunications signaling networks. It specializes in
SS7 gateway products that resolve  interworking  problems  between  incompatible
communications networks. MicroLegend provides signaling interoperability between
ANSI SS7,  ITU-T C7 and many  national  variants used in Japan,  China,  Brazil,
Mexico  and  Europe.   MicroLegend's   customers   include   telecom   equipment
manufacturers such as Alcatel and Nortel Networks, wireless and wireline network
operating  companies  such  as  Aerial  Communications,  Bell  Canada  and  GTE,
innovative IP based telecommunications solutions provider Simplified Telesys and
next  generation  network  operators.  The  Registrant  intends to continue  the
various  businesses of MicroLegend.  MicroLegend's  headquarters  are located in
Ottawa,  Ontario,  with an  additional  development  facility in Raleigh,  North
Carolina.

   Item 7. Financial Statements , Pro Forma Financial Information and Exhibits

(a)      Financial Statements of Business Acquired

               Not Applicable

(b)      Pro Forma Financial Information

               Not Applicable

(c)      Exhibits:

(20.1) Press Release of the Registrant,  dated December 2, 1999,  announcing the
Registrant's agreement to acquire MicroLegend.

(20.2) Press Release of the Registrant,  dated December 13, 1999, announcing the
completion of the Registrant's acquisition of MicroLegend.
SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                     Performance Technologies, Incorporated

December 10, 1999                    By:      /s/ Donald L. Turrell
                                     ------------------------------
                                                  Donald L. Turrell
                                     President and Chief Executive Officer

December 10, 1999                    By:      /s/ Dorrance W. Lamb
                                     --------------------------------
                                                  Dorrance W. Lamb
                                           Vice President of Finance
EXHIBIT INDEX

DESCRIPTION OF DOCUMENT

Exhibit Number

(20.1) Press Release of the Registrant,  dated December 2, 1999,  announcing the
Registrant's  agreement  to acquire  MicroLegend.

(20.2) Press Release of the Registrant,  dated December 13, 1999, announcing the
completion of the Registrant's acquisition of MicroLegend.

Exhibit 20.1 Press Release of the Registrant, dated December 2, 1999, announcing
the Registrant's agreement to acquire MicroLegend

Performance Technologies to Acquire MicroLegend Telecom Systems

       Accelerates PTI's strategy to capitalize on explosive opportunities
            in the Internet driven telecommunications marketplace

ROCHESTER,  New York --  December  2,  1999 --  Performance  Technologies,  Inc.
(NASDAQ:PTIX)  today  announced it has entered  into a  definitive  agreement to
acquire  privately held  MicroLegend  Telecom Systems Inc., an Ottawa,  Ontario,
Canada-based  innovator of advanced signaling system 7 (SS7)  telecommunications
gateway products.  SS7 is the  technological  basis for such common functions as
caller ID, 800/900 service and cellular roaming.  Performance  Technologies will
issue approximately 2,166,000 shares of its common stock to acquire MicroLegend.
Based on today's closing price, the transaction is valued at approximately $43.6
million.

The acquisition  leverages the expertise and core competencies of both companies
in the rapidly growing market for interconnecting SS7 and Internet protocol (IP)
telephony  networks.  SS7/IP  interoperability  is a  critical  requirement  for
next-generation  Voice-over-IP networks and existing  public-switched  telephone
networks to manage voice calls and access value-added  services across networks.
The  acquisition  also broadens PTI's SS7 product  portfolio and strengthens its
popular  Channel7 SS7 platform by adding support for  higher-level  applications
delivered by PTI  customers,  including  original  equipment  manufacturers  and
value-added resellers.

Accounting  for the  acquisition  of  MicroLegend  as a "pooling of  interests,"
Performance  Technologies  expects to record a one-time after-tax charge for the
expenses  associated with the transaction of approximately $1.9 million, or $.14
per share in the fourth  quarter.  The transaction is subject to various closing
conditions and is expected to close on or before December 31, 1999.

"This  agreement  represents  another  major step in PTI's  strategy  to address
opportunities in the exploding Internet-driven  telecommunications marketplace,"
said Donald  Turrell,  president and CEO of Performance  Technologies.  "PTI and
MicroLegend  currently have no overlapping  customers or technologies,  and this
acquisition will significantly enhance our collective capabilities. Together, we
now have the opportunity to provide our customers with innovative solutions that
capitalize on the switching and signaling technologies of both companies."

"We are very excited about this new relationship.  It provides expanded services
to our customers  and affords  growth  opportunities  for both our employees and
investors," said Reg Cable,  president of MicroLegend.  "Our SS7 and IP software
products  are  an  excellent  fit  with  PTI's  hardware   platforms,   creating
significant targeted opportunities in the SS7 marketplace."

Performance   Technologies,   spanning  the  enterprise  and  telecommunications
integrator  markets,  is  recognized  as  the  premier  supplier  of  wide  area
networking  hardware and  protocol-software  solutions  used by  telecom/datacom
integrators  and original  equipment  manufacturers  worldwide.  Its  enterprise
switching   products  also  provide  non-stop  LAN  switching   capabilities  in
mission-critical application environments,  especially for the emerging Internet
service providers (ISPs) who demand "'round-the-clock," 24x7 operation.

MicroLegend is the leading global SS7 internetworking provider focusing on major
telecommunications carriers and "next-generation" service providers, selling its
SS7 signaling  gateways,  which readily  accommodate custom applications and new
protocol variants.  MicroLegend  currently has 44 employees.  In its fiscal year
ended July 31, 1999,  MicroLegend  recorded revenue of approximately $5 million,
an increase of 88% over its fiscal 1998 revenue.

"As we enter  the new  millennium,  traditional  circuit-switched  equipment  in
public telephone networks needs to communicate  effectively with packet-switched
equipment in data networks  worldwide,"  said Turrell.  "As the transition to an
`all-packet'  network unfolds, the SS7 signaling protocol will be heavily relied
upon. PTI and MicroLegend are well prepared for this  convergence of traditional
voice networks and IP-based data networks,  ready to capitalize on the growth of
new  service-provider  offerings  such  as  Voice-over-IP  and  virtual  private
networks."

In March 1998,  PTI announced a stock  repurchase  program  pursuant to which it
allocated up to $5 million to reacquire shares of its common stock. To date, PTI
has  repurchased  approximately  120,000  shares  at  a  cost  of  $760,000.  In
connection  with the acquisition of MicroLegend and prior to the closing of that
transaction,  PTI will be repurchasing up to an additional  55,000 shares of its
common stock in the open market.  After  completing  that  repurchase,  PTI will
discontinue its current stock repurchase program.

Performance  Technologies,  Inc.  is  headquartered  in  Rochester,  N.Y.,  with
regional sales and support  facilities near Hartford,  Connecticut,  Chicago and
the United  Kingdom,  as well as co-located  sales and  communications  software
development operations in San Diego, California.  PTI designs,  manufactures and
markets  a  wide  variety  of  high-performance  networking  and  communications
solutions.  The company's  products  target  high-performance,  mission-critical
networking   solutions   in   industries   such  as   telecommunications,   data
communications,  financial  services,  defense  and  transportation.  PTI  is  a
publicly traded company (NASDAQ: PTIX). Visit PTI's Web site at www.pt.com.

MicroLegend's  headquarters is located in Ottawa, with an additional development
facility in Raleigh, North Carolina. MicroLegend develops and markets innovative
products  for  telecommunications  signaling  networks.  It  specializes  in SS7
gateway  products  that  resolve  interworking   problems  between  incompatible
communications networks. MicroLegend provides signaling interoperability between
ANSI SS7,  ITU-T C7 and many  national  variants used in Japan,  China,  Brazil,
Mexico  and  Europe.   The  company's   customers   include  telecom   equipment
manufacturers such as Alcatel and Nortel Networks, wireless and wireline network
operating  companies  such  as  Aerial  Communications,  Bell  Canada  and  GTE,
innovative IP based telecommunications solutions provider Simplified Telesys and
next   generation   network   operators.   Visit   MicroLegend's   Web  site  at
www.microlegend.com.

The  statements  contained in this press release that are not purely  historical
are  forward-looking  statements  within  the  meaning  of  Section  21E  of the
Securities and Exchange Act of 1934, as amended,  including statements regarding
Performance  Technologies'  expectations,   beliefs,  intentions  or  strategies
regarding the future.  Forward-looking  statements include statements  regarding
the completion of the acquisition of MicroLegend  Telecom Systems,  the benefits
to be derived from the merger of the two  companies,  the  integration  of their
technologies  and  product  offerings,   and  future  sales  to  customers.  All
forward-looking  statements included in this document are based upon information
available to Performance  Technologies  as of the date herein,  and  Performance
Technologies   assumes  no  obligation   to  update  any  such   forward-looking
statements.  Forward-looking  statements involve risks and uncertainties,  which
could cause actual results to differ materially from those projected. These, and
other risks relating to Performance Technologies' business, are set forth in the
documents  filed by  Performance  Technologies  with the Securities and Exchange
Commission,  including  the Annual Report on Form 10-K, as of December 31, 1998,
and the more recent  reports on Form 10-Q, and the other reports filed from time
to time with the Securities and Exchange Commission.

Exhibit  20.2  Press  Release  of  the  Registrant,  dated  December  13,  1999,
announcing the completion of the Registrant's acquisition MicroLegend

Performance Technologies Completes MicroLegend Telecom Systems Purchase

   Acquisition Capitalizes on Complementary Expertise and Capabilities of Both
            Companies in the Exploding Internet-driven Marketplace

ROCHESTER,  New York -- December  13,  1999 --  Performance  Technologies,  Inc.
(NASDAQ:PTIX)  today  announced it has  completed  the  purchase of  MicroLegend
Telecom   Systems   Inc.,   an  Ottawa,   Ontario-based   provider  of  advanced
telecommunications  gateway products,  finalizing the various closing conditions
of the definitive  agreement announced by the Company on December 2, 1999. Under
the terms of the all-equity acquisition,  PTI has issued approximately 2,166,000
shares of its common stock currently valued at approximately $43.6 million.

      "With the consummation of this acquisition,  Performance Technologies,  in
conjunction with the MicroLegend  organization,  can  aggressively  proceed on a
variety of exciting new opportunities and projects that address the requirements
of the exploding telecommunications marketplace,  including wireless roaming and
Voice  over  IP,"  said  Donald  Turrell,   president  and  CEO  of  Performance
Technologies.

      This acquisition  capitalizes on the expertise and unique  capabilities of
both  organizations  in the rapidly  growing market for  interconnecting  public
switched    telephone    networks   and   Internet   Protocol   (IP)   networks.
Interoperability  is a critical  requirement for  next-generation  Voice-over-IP
networks  and  existing  telephone  systems  to manage  voice  calls and  access
value-added services across the combined networks.

      Performance  Technologies  is recognized  as the premier  supplier of wide
area networking hardware and protocol software solutions used by telecom/datacom
integrators and original equipment manufacturers  worldwide.  Additionally,  its
enterprise  switching  products provide  non-stop LAN switching  capabilities in
mission-critical  application  environments  demanding  "'round-the-clock"  24x7
operation.

      Performance Technologies,  Inc. is headquartered in Rochester,  N.Y., with
regional sales and support  facilities near Hartford,  Connecticut,  Chicago and
the United  Kingdom,  as well as co-located  sales and  communications  software
development operations in San Diego, California.  PTI designs,  manufactures and
markets  a  wide  variety  of  high-performance  networking  and  communications
solutions.  The company's  products  target  high-performance,  mission-critical
networking   solutions   in   industries   such  as   telecommunications,   data
communications,  financial  services,  defense  and  transportation.  PTI  is  a
publicly traded company (NASDAQ: PTIX). Visit PTI's Web site at www.pt.com.

          MicroLegend  is  the  leading  global  SS7  internetworking   provider
focusing on major  telecommunications  carriers  and  "next-generation"  service
providers.  MicroLegend's  headquarters is located in Ottawa,  Ontario,  with an
additional development facility in Raleigh, North Carolina.  Visit MicroLegend's
Web site at www.microlegend.com.