Productivity Technologies Corp. Closes New Senior Lending Facilities for Both Operating Subsidiaries

Productivity Technologies Corp. Closes New Senior Lending Facilities for Both
Operating Subsidiaries 


FENTON, Mich., Dec. 16  /PRNewswire-FirstCall/ -- Productivity Technologies
Corp. (based in Fenton, Michigan) (Pink Sheets: PRAC) announced today it has
closed on new senior debt financings for both its Atlas Technologies, Inc. and
Westland Control Systems, Inc. operating subsidiaries.

The financings for each operating subsidiary were provided by separate lenders. 
Atlas obtained an $8.0 million commitment of senior debt financing by Merrill
Lynch Business Financial Services, a subsidiary of Merrill Lynch. A portion of
this commitment was utilized to pay off Atlas' prior senior lender, Bank One NA.
 Bank One is no longer a lender with respect to Atlas or PTC.

Westland was provided a $1.25 million commitment for working capital financing
by Minneapolis-based Spectrum Commercial Services, Inc.  Bank One remains a
subordinated creditor to Westland.

As a result of the new senior debt financings, PTC management believes that each
business, Atlas on the one hand and Westland on the other, has its own working
capital financing, and each is now positioned to pursue its business development
activities more independently.

In connection with these financings, all remaining financial obligations to the
former owner of Westland have been retired.

PTC shares currently trade on the pink sheets due to the Company's delay in
filing 10K and 10Q reports for the fiscal year ended June 30, 2003 and fiscal
quarter ended September 30, 2003, respectively.  The Company intends to file
these reports as soon as possible. 

DATASOURCE: Productivity Technologies Corp.



CONTACT:  Jesse A. Levine, Chief Financial Officer of Productivity

Technologies Corp., [phone]

Copyright