Peerless Manufacturing Co. Completes Acquisition of Nitram Energy, Inc.

Peerless Manufacturing Co. (Nasdaq: PMFG) today announced that it has completed its previously announced acquisition of privately owned Nitram Energy, Inc. for $65 million in cash. The acquisition is expected to be accretive to earnings in the fiscal year beginning July 1, 2008.

Nitram, headquartered in Orchard Park, New York, is the parent company of Burgess-Manning, Inc., Bos-Hatten, Inc., and Alco Products. Burgess-Manning manufactures custom-designed gas/liquid and gas/solid separators, pulsation dampeners and silencers. Bos-Hatten manufactures custom-designed shell and tube heat exchangers. Alco Products manufactures custom-designed hairpin- style specialty heat exchangers. These businesses principally serve the oil/natural gas, chemical/petrochemical and power generation industries. Nitram owns manufacturing facilities in Wichita Falls and Cisco, Texas.

Peerless Manufacturing 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.

Scott-Macon’s Chemical Industry Group acted as exclusive financial advisor to Nitram Energy, Inc. in this transaction.