MFRI Announces Plan to Close Its South Africa Filtration Products Unit

NILES, IL--(Marketwire - August 3, 2010) -  MFRI, Inc. (NASDAQ: MFRI) announced today its intention to close its South Africa Filtration Products unit, Midwesco Filter South Africa Pty Ltd. The Company expects to record a second quarter charge of approximately $500,000 in connection with the closing, which is expected to be completed by October 31, 2010. The unit's net sales for fiscal years 2008 and 2009 and the first fiscal quarter of 2010 were each less than 0.5% of MFRI consolidated net sales.

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.