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PMFG Win $13.7M Navy Contract

Maritime Activity Reports, Inc.

September 18, 2012

PMFG, Inc. (Parent of Peerless Mfg. Co.) Notice of Award Valued at $13.7 Million to Supply Air Moisture Separation and Filtration Systems to U.S. Navy

PMFG, Inc. (Nasdaq:PMFG) has announced it was awarded a contract by the U.S. Navy's Naval Surface Warfare Center, Carderock Division (NSWCCD) to provide the air inlet moisture separation/filtration systems to replace the existing systems on the Arleigh Burke (DDG 51) class. The five-year, multiple-award, indefinite delivery, indefinite quantity firm-fixed-price contract could have a potential value of approximately $13.7 million, if all options are exercised. This order value will be added incrementally to the Company's backlog as purchase orders are released under the contract.

The new combustion intake air filtration systems, which protect the ship's gas turbines, are being procured in order to replace the existing intake filtration systems which are two-stage flat panel arrangements. Since 1985, PMFG has provided the U.S. Navy with air inlet moisture separation/filtration systems on a wide variety of Naval and Coast Guard ships. The DDG destroyer class of ship is known as the backbone of the U.S. Navy fleet.

The NSWCCD is the Navy's leading maritime technology authority and oversees full life-cycle support for maritime technologies. The division is a leader in surface and undersea vehicle science, ship systems and related maritime technology and serves as a major technical component of the Naval Sea Systems Command.

Peter J. Burlage, Chief Executive Officer, stated, "For more than 25 years PMFG has supported the technology needs and advancements of the Naval Surface Warfare Center, Carderock Division. We are fully committed to providing technical expertise and innovation to enhance the Navy's maritime capabilities and supporting the Navy's critical missions."


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