Air Pollution Control Equipment Services, Coal, Gas

Peerless Mfg. Co. wins orders for separation and filtration products for Florida power plants

DALLAS, Aug. 20, 2003 — Peerless Mfg. Co. has received a multi-million dollar order for skid mounted fuel gas conditioning systems for eight gas turbines for two electric power plants located in Florida.

As previously announced, the Company is also providing SCR systems for these plants. The fuel gas conditioning systems are scheduled for shipment in the first half of calendar year 2004.

In other news, Peerless has received a multi-million dollar order from Northrop Grumman Ship Systems to supply louver systems for the LPD-17 Class Amphibious Transport Ship. The order includes design, engineering and fabrication of the complete systems to be ready for installation on multiple ships. Shipment is scheduled to begin in June 2004 with completion in the spring of 2005.

“We are extremely pleased with these orders for specialized applications of our traditional separation/filtration products and it gives us an excellent start to our fiscal year 2004,” stated Sherrill Stone, Chairman and Chief Executive Officer.

About Peerless Mfg. Co.

Peerless Mfg. Co. is engaged in the business of designing, engineering, manufacturing and selling highly specialized products used for the abatement of air pollution and products for the separation and filtration of contaminants from gases and liquids. The Company, headquartered in Dallas, Texas, markets its products worldwide.