Peerless Mfg. Co. Completes Holding Company Reorganization

DALLAS, Aug. 15 /PRNewswire-FirstCall/ -- Peerless Mfg. Co. today announced the completion of the previously announced holding company reorganization that was approved at a special meeting of Peerless shareholders on August 14, 2008. In the reorganization, Peerless Mfg. Co., a Texas corporation became a wholly owned subsidiary of PMFG, Inc., a Delaware corporation, and each existing shareholder of Peerless has become a stockholder of PMFG, Inc.

In the reorganization, each share of Peerless common stock was automatically converted into two shares of PMFG common stock. Accordingly, the reorganization had the same effect as a two-for-one stock split. Former stockholders of Peerless are not required to return stock certificates or otherwise take any action to exchange the certificates that formerly represented shares of Peerless common stock for certificates representing their shares of PMFG, Inc.

PMFG common stock will be listed on the Nasdaq Global Market. The Company expects that the PMFG shares will begin trading on Monday, August 18, 2008 under the symbol "PMFG," the same symbol under which Peerless common stock was previously listed and traded. Beginning at that time, the PMFG common stock will trade as adjusted, giving effect to the reorganization, including the effect of the two-for-one conversion of shares. Peerless common stock will cease to trade as a result of the reorganization.

About PMFG

PMFG is a leading provider of custom-engineered systems and products designed to help ensure that the delivery of energy is safe, efficient and clean. PMFG primarily serves the markets for power generation, natural gas infrastructure, and refining and petrochemical processing. PMFG offers a broad range of separation and filtration products, selective catalytic reduction, or SCR, systems, and other complementary products including specialty heat exchangers, pulsation dampeners and silencers. Headquartered in Dallas, Texas, PMFG markets its products worldwide.

Safe Harbor Under The Private Securities Litigation Reform Act of 1995

Certain statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results to be materially different from any future results expressed or implied by these forward-looking statements. You should not place undue reliance on these statements which only speak as of the date of this release. The words "anticipate," "preliminary," "expect," "believe," "intend" and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for these forward-looking statements. In order to comply with the terms of the safe harbor, PMFG notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results expressed in these forward-looking statements. These risks and uncertainties include the inability to realize the expected benefits of the reorganization into a Delaware holding company and PMFG's ability to execute its plans and strategies. Other important information regarding factors that may affect PMFG's future performance is included in the public reports that Peerless filed and PMFG will file with the Securities and Exchange Commission, including the information in Item 1A, "Risk Factors" of Part I to the Annual Report on Form 10-K for the fiscal year ended June 30, 2007 and in Item 1A of Part II to the Quarterly Report on Form 10-Q for the period ended March 31, 2008, in each case filed by Peerless Mfg. Co. PMFG undertakes no obligation to revise any forward-looking statements or to update them to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by PMFG or any other person that the events or circumstances described in such statement are material.

For Further Information Contact: Mr. Peter J. Burlage, Chief Executive Officer Mr. Henry G. Schopfer, Chief Financial Officer PMFG, Inc. 14651 North Dallas Parkway Suite 500 Dallas, Texas 75254 Phone: [phone] Fax: [phone] http://www.peerlessmfg.com/ or Kevin McGrath Cameron Associates [phone]