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MFRI Announces That Its Perma-Pipe Saudi Arabia Subsidiary Secured New Orders Totaling Over $27 Million

NILES, IL -- (Marketwire) -- 02/05/13 -- MFRI, Inc. (NASDAQ: MFRI) announced today that its Perma-Pipe Saudi Arabia subsidiary has received new orders exceeding $27 million for the first phase of the district cooling system expansion project at King Abdul-Aziz International ("KAIA") airport in Jeddah, Saudi Arabia. These orders are in addition to the $23 million announced in the Company's press release of November 23, 2012 bringing the total of major project work in Saudi Arabia to nearly $50 million.

The King Abdul-Aziz International Airport is one of the largest projects in the recent history of the Saudi Arabia Kingdom. The passenger terminal complex comprises an area over 6.7 million square feet (622,000 square meters) with 46 gates, 96 boarding bridges including double deck access for the A380 Airbus. The total facilities span over 25,000 acres (100 square kilometers) including the chilled water distribution system, utility plants, utility tunnel, plant nursery, and transportation center with integrated rail station.

Fati Elgendy, President of Perma-Pipe, said: "This order represents a further validation of our strategy to expand our footprint to the rapidly developing Saudi market. Delivery is expected to start in the first fiscal quarter of 2013 and be completed in the fourth quarter. We plan to produce the insulated pipe, spools and fittings at our new factory in Dammam, Saudi Arabia with important support from our United Arab Emirates ("U.A.E.") factory. Our team has been working for over one year pursuing this very prestigious order. The KAIA project coupled with work on expansion of the Holy Haram Mosque in Mecca positions us very well for a strong 2013 in the Middle East."

"We have spent two years investing in direct in-country capacity in Saudi Arabia. The Jeddah Airport is the largest single project we have received since we started our business activities in the Middle East some 7 years ago. Perma-Pipe has already successfully completed the supply of insulated piping systems to several other major airports in the U.A.E., Qatar, and Oman. Our best in class products, engineering skills and support services have proven to be a successful formula in establishing Perma-Pipe as the market leader in the region," said Bradley Mautner, CEO of MFRI.

MFRI, Inc. is a multi-line company engaged in the following businesses: pre-insulated specialty piping systems for oil and gas gathering, district heating and cooling and other applications; custom designed industrial filtration products to remove particulates from dry gas streams; industrial process cooling equipment to remove heat from molding, printing and other industrial processes; and installation of heating, ventilation and air conditioning for large buildings.

Statements and other information contained in this announcement which can be identified by the use of forward-looking terminology such as "anticipate," "may," "will," "expect," "continue," "remain," "intend," "aim," "should," "prospects," "could," "position," "future," "potential," "believes," "plans," "likely," "seems," and "probable," or the negative thereof or other variations thereon or comparable terminology, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 as amended and are subject to the safe harbors created thereby. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, economic conditions, market demand and pricing, competitive and cost factors, raw material availability and prices, global interest rates, currency exchange rates, labor relations and other risk factors.

This announcement may also contain certain non-GAAP financial information that management believes is helpful in understanding our business. This financial information should not be considered as an alternative to net (loss) income or any other GAAP measurement of performance.

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