MFRI Completes Joint Acquisition of Pipe Coating and Insulating Facility in Camrose, Alberta, Canada

MFRI, Inc. (NASDAQ – MFRI) Today, MFRI announced that its Perma-Pipe, Inc. (Perma-Pipe), subsidiary together with The Bayou Companies, Inc., (Bayou), have completed the $12.25 million (CAN) acquisition of Garneau, Inc’s pipe coating and insulation facility and associated assets located in Camrose, Alberta Canada. The acquisition was effected through Bayou Perma-Pipe Canada, Ltd. (“BPPC”), a new joint venture company between Perma-Pipe, Inc. and Bayou. Bayou is a subsidiary of Insituform Technologies, Inc. (NASDAQ -- INSU).

Bayou and Perma-Pipe announced their agreement to acquire the Camrose facility on September 30, 2009. The Garneau shareholders approved the transaction on October 28, 2009 and the closing occurred on November 2, 2009. Bayou and Perma-Pipe expect that this additional pipe coating and insulation facility in Western Canada will increase their addressable market by approximately $200 million.

Fati Elgendy, President of Perma-Pipe said, “We are confident this partnership with Bayou will provide significant value to our customers in the Canadian energy and mining industry. Perma-Pipe and Bayou have worked together for over 10 years supplying factory insulated flow lines for oil and gas gathering in the Gulf of Mexico. This new joint initiative will allow both to bring our expertise in pipe coating and insulation to BPPC.”

The BPPC board of directors announced the appointment of Mr. Eldridge Indest, as President of Bayou Perma-Pipe Canada. Mr. Indest brings his experience as a 32-year veteran with Bayou, most recently serving as Director of Technical Planning in Bayou’s New Iberia operations. Mr. Indest will relocate to Camrose, Alberta.

About Perma-Pipe

Perma-Pipe, Inc. is the leading manufacturer of pre-insulated district heating and cooling piping systems in North America. Perma-Pipe also offers pre-insulated products for subsea oil and gas gathering, LNG terminals and long distance chemical and petroleum pipeline transportation. Perma-Pipe operates manufacturing plants in Lebanon, Tennessee; New Iberia Louisiana, Mundra India and Fujairah UAE. More information about Perma-Pipe can be found on its internet site at www.permapipe.com.

About MFRI

MFRI, Inc. is a multi-line company engaged in the following businesses: pre-insulated specialty piping systems for oil and gas gathering, district heating and cooling and other applications; custom-designed industrial filtration products to remove particulates from dry gas streams; industrial process cooling equipment to remove heat from molding, printing and other industrial processes; and installation of heating, ventilation and air conditioning for large buildings. More information about MFRI can be found at its internet site at www.mfri.com.

About Bayou

Bayou was founded in 1942 and provides pipe coating, fabrication and logistics capability from its headquarters in New Iberia, Louisiana. Bayou was acquired by Insituform Technologies, Inc. in February 2009. Bayou is a leading provider of cost-effective solutions to onshore and offshore energy and infrastructure companies primarily in North America and the Gulf of Mexico. Bayou’s products and services include internal and external pipeline coating, lining, weighting and insulation. Bayou also provides specialty fabrication and services for offshore deepwater installations, including project management and logistics. More information about Bayou can be found on its internet site at www.bayoucompanies.com.

About Insituform

Insituform Technologies, Inc. (the “Company”) is a leading worldwide provider of proprietary technologies and services for rehabilitating sewer, water, energy and mining piping systems and the corrosion protection of industrial pipelines. More information about the Company can be found on its internet site at www.insituform.com.

Contacting Bayou Perma-Pipe Canada

Bayou Perma-Pipe will be communicating directly with all current customers. In the meantime, more information about BPPC can be found on its website, www.bayoupermapipe.com or by calling 780-672-2345. BPPC’s address is 5233 39th Street, Camrose, AB T4V 4R5.

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," "future," "potential," believes," "plans," "likely," 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.