Fourth Letter to Shareholders of Productivity Technologies Corp. from Jesse Levine (OTC: PRAC)

CHICAGO, Nov. 7, 2017 /PRNewswire/ -- Fellow Shareholders:

We seek to continue the PTC/Atlas Optimization process.  While we wait for more current information regarding PTC/Atlas' financial condition, we provide our best estimates of value ranges for PTC/Atlas assets.  

PTC shareholders should not unduly rely on these estimates.  These are our opinions based on information currently available to us and include forward looking statements.  Per prior letters, we seek to have an independent turnaround/restructuring advisory firm assess the viability and value of PTC/Atlas.  It is unknown at this time if Messrs. Seidman and Stupay will resist this process, including whether they will provide the necessary access to assess Atlas' records and operations to evaluate our best estimates of value. 

It is our belief there are approximately two million PTC shares outstanding that are not in dispute.  If this share estimate is not accurate, then values per share below could change.  Also, we believe Messrs. Seidman and Stupay sought to issue themselves shares during 2016.  We dispute the legitimacy of such shares and have excluded them for purposes of the value ranges below. Further, Messrs. Seidman and Stupay have disputed warrant shares authorized to me in 2012, and we have excluded the warrant shares solely for purpose of the value estimates below.  

-Factory and Equipment: Current information not yet known. Based on prior appraisals and information, we believe these assets could be worth $0.60 to $0.85 per undisputed share.

-Ongoing operations:  Current information not yet known. Assuming PTC/Atlas is earning operating income of $300,000 to $500,000 per annum, and assuming a 5x multiple, this represents $0.75 to $1.24 per undisputed share prior to debt.  If operations were better managed or purchased by a strategic buyer that could build PTC/Atlas products more efficiently, the value for PTC shares could be higher.

-Per annum salaries, wages and benefits being paid by PTC/Atlas to Messrs. Seidman and Stupay: Current information not yet known.  We believe overhead for Seidman and Stupay could be $0.08 per undisputed share or more.  We question the effectiveness of Seidman and Stupay and believe this amount would be better spent on operations or regular ongoing dividends to PTC Shareholders.

We will seek a meeting of PTC Shareholders in the near future to discuss these value estimates and ideas for providing real and tangible value to PTC Shareholders.  The meeting agenda likely will include seeking for the PTC Board to declare and pay dividends and voting for the continuation of existing, or selection of new, PTC directors.

Note: The above may include predictions that might be considered forward-looking. While statements represent our current judgments regarding the future, these are subject to risks and actual future results could differ materially.  You are cautioned to not unduly rely on forward-looking statements, which reflect our opinions only as of today's date.  While we will try to do so, we are not obligating ourselves to revise or publicly release revisions to forward-looking statements upon new information or future events

JESSE LEVINE
248-219-5500

SOURCE Jesse Levine

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