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MFRI Announces Over $23 Million in New Orders for Piping Systems in the Kingdom of Saudi Arabia

NILES, IL -- (Marketwire) -- 11/26/12 -- MFRI, Inc. (NASDAQ: MFRI) announced today that its Perma-Pipe Saudi Arabia subsidiary has received several orders totaling over $23 million to supply engineered and insulated piping products for the chilled water distribution system utilized for a major expansion of the Haram Sharif in Mecca, Kingdom of Saudi Arabia.

The Haram Sharif Grand Mosque expansion is one of the most prestigious projects in the Muslim world. The expansion project adds an area of about 1.8 million square meters (445 acres) to the current Mosque. The additional space will accommodate over 2 million pilgrims at one time compared to the current structure which is limited to 620,000 pilgrims. The project also comprises a number of new hotels, residential buildings, commercial centers and public facilities, as well as permanent housing for the people residing in the area. Chilled water flowing through Perma-Pipe's Poly-therm™ insulated piping systems will be used for air conditioning throughout the complex.

Fati Elgendy, President of Perma-Pipe, said: "Nothing can express my joy in participating in this very important infrastructure project. It validates our decision to invest in the Kingdom and serve one of the fastest growing markets in the world for district cooling. Delivery for the project is expected to start in December 2012 and be completed in the first half of 2013. We plan to produce the insulated pipe, spools and fittings at our Saudi factory with important support from our UAE factory."

Bradley Mautner, President of MFRI, Inc., commented: "Fati and his team are to be congratulated on the wonderful job they have done in winning these major orders to support the ambitious growth plans of the Kingdom. They have worked tirelessly with engineers and contractors to bring Perma-Pipe's state of the art system solutions to this complex world class project. As we ramp up production in Saudi Arabia we certainly hope this is just the beginning of many successful examples of how our engineering and manufacturing capabilities add value to the growth of the Kingdom."

"I am very pleased with our success in securing this opportunity to furnish our products on this significant development. Expanding our focus to the Saudi Arabian infrastructure, industrial and oil and gas markets fits well with the overall implementation of our business strategy at Perma-Pipe," said David Unger, CEO, MFRI, Inc.

For more information visit the Company's website www.mfri.com.

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.

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