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"This year also contained some unusual expenses for audit, tax consulting and other professional services related to our strategic initiatives to drive improved operating performance in filtration and piping systems. Additionally, we invested nearly $1 million in startup costs for Saudi Arabia in 2012. It has taken two years of development and investment, but we have now transitioned from the startup phase to being fully operational. Therefore, those costs will not recur and we expect profitable revenue to begin this year. The momentum we have built is important, and we are focused on getting the most out of our opportunities this year. We also know that in order to drive ongoing profitable growth, we must explore new product initiatives, geographical expansion opportunities and alliances to further enhance our future for 2014 and beyond."

Bradley Mautner continued: "The decision to generate and redeploy capital from the sale of Thermal Care U.S. assets was not an easy one. It is a business started by the predecessor of MFRI in the 1960's, and it has generally been a steady contributor to the Company. More recently, the team led by Steve Buck did an excellent job of managing its recovery from the deep and lengthy recession that began in 2008. As we studied the various choices to support our emerging growth initiatives and larger market places, it became apparent that this was the appropriate choice for MFRI and our shareholders. We appreciate the efforts of the Thermal Care team and know they will bring a strong level of expertise and professionalism to complement IPEG's portfolio. We certainly wish them all the best going forward."

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; and installation of heating, ventilation and air conditioning for large buildings.

Form 10-K for the period ended January 31, 2013 will be accessible at http://www.sec.gov/. For more information visit the Company's website www.mfri.com or contact the Company directly.

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.

MFRI, INC. AND SUBSIDIARIESCondensed Statements of Operations (Audited)             Fiscal Year Ended($ in 000's except per share data)                          January 31,                                                          2013       2012                                                       ---------  ---------Net sales:  Piping Systems                                       $  89,664  $  96,977  Filtration Products                                     79,143     93,705  Industrial Process Cooling                              37,131     32,112  Corporate and Other                                      6,080     10,702                                                       ---------  ---------    Total                                                212,018    233,496                                                       ---------  ---------Gross profit:  Piping Systems                                          17,020     14,410  Filtration Products                                     10,474     12,466  Industrial Process Cooling                              10,240      8,541  Corporate and Other                                        373        904                                                       ---------  ---------    Total                                                 38,107     36,321                                                       ---------  ---------(Loss) income from operations  Piping Systems                                           3,452      1,143  Filtration Products                                     (2,962)       614  Industrial Process Cooling                               1,954        810  Corporate and Other                                     (9,709)    (7,630)                                                       ---------  ---------    Total                                                 (7,265)    (5,063)                                                       ---------  ---------Income from joint venture                                  1,386      1,558Interest expense - net                                     1,816      1,437                                                       ---------  ---------Loss before income taxes                                  (7,695)    (4,942)Income tax expense                                        10,790         17                                                       ---------  ---------Net loss                                               $ (18,485) $  (4,959)                                                       ---------  ---------Weighted average common shares outstanding  Basic and diluted                                        6,922      6,878Loss per share:  Basic and diluted                                    $   (2.67) $   (0.72)