----

----

| Pennsylvania                                  |   | 23-1683282               |
|-----------------------------------------------|--------|--------------------------|
| (State      or other jurisdiction of          |   | (I.R.S.      Employer    |
| incorporation      or organization)           |   | Identification      No.) |
|                                          |   |                     |
| 160      Cassell Road, P.O. Box 144           |   |                     |
|   Harleysville,      Pennsylvania   |   | 19438                    |
| (Address      of principal executive offices) |   | (Zip      Code)          |

----

----

----

INDEX

| PART I - FINANCIAL      INFORMATION |                      |
|-------------------------------------|---------------------------|
|                                |                      |   |
|   Item 1.                      | Financial      Statements |   |

|   |                                                                                                                                                                                                                 |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | Consolidated      Balance Sheet as of                  as of April 30, 2008 and January 31, 2008                                                         | 2      |
|   | Consolidated      Statement of Operations              for      the nine-month and three-month periods ended April 30, 2008 and      2007 | 3      |
|   | Consolidated      Statement of Shareholders’ Equity              for      the nine-month periods ended April 30, 2008 and 2007 | 4      |
|   | Consolidated      Statement of Cash Flows              for      the nine-month periods ended April 30, 2008 and 2007                      | 5      |
|   | Notes      to Consolidated Financial Statements                                                                                                                                                                      | 6      |
|   | Report      of Independent Registered Public Accounting Firm                                                                                                                                                         | 17     |
|   |                                                                                                                                                                                                                 |   |

|        Item 2.              | Management’s      Discussion and Analysis of Financial Condition and Results of Operations | 18             |
|----------------------------------|--------------------------------------------------------------------------------------------------|----------------|
|                             |                                                                                             |           |
|   Item 3.              | Qualitative      and Quantitative Disclosures about Market Risk                                  | 23             |
|                             |                                                                                             |           |
|        Item 4.              | Controls      and Procedure                                                                      | 23             |
|                             |                                                                                             |           |
|                             |                                                                                             |           |
| PART II - OTHER      INFORMATION |                                                                                             |
|                             |                                                                                             |           |
|   Item 1.              | Legal      Proceedings                                                                           | 24             |
|                             |                                                                                             |           |
|   Item      1A.        | Risk      Factors                                                                                | 24             |
|                             |                                                                                             |           |
|        Item 2.              | Unregistered      Sales of Equity Securities and Use of Proceeds                                 | 25             |
|                             |                                                                                             |           |
|   Item 3.              | Defaults      Upon Senior Securities                                                             | 25             |
|                             |                                                                                             |           |
|   Item 4.              | Submission      of Matters to a Vote of Security Holders                                         | 25             |
|                             |                                                                                             |           |
|   Item 5.              | Other      Information                                                                           | 25             |
|                             |                                                                                             |           |
|        Item 6.              | Exhibits                                                                                         | 26             |
|                             |                                                                                             |           |
|                             |                                                                                             |           |
| SIGNATURES                       |                                                                                             |   27 |

----

| PART      I – FINANCIAL INFORMATION         |           |   |             |   |
|---------------------------------------------------|----------------|--------|------------------|--------|
|                                              |           |   |             |   |
| Item      1.  Financial      Statements |           |   |             |   |
|                                              |           |   |             |   |
|                                              | April      30, |   | January      31, |   |
| ASSETS                                            | 2008           |   | 2008             |   |

| Current      assets                                                                                                                 |         |   |         |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|--------------|--------|
|       Cash      and cash equivalents                                                                  | $25,060,498  |   | $21,906,877  |   |
|       Marketable      securities                                                                      | 19,824       |   | 20,369       |   |
|       Accounts      receivable, net of allowance for doubtful                                         |         |   |         |   |
|          accounts      of approximately $163,000 and                                   |         |   |         |   |
|          $152,000,      respectively                                                   | 19,071,332   |   | 23,013,988   |   |
|       Inventories                                                                                     | 21,915,950   |   | 21,258,227   |   |
|       Prepaid      expenses, deposits and other current assets                                        | 1,814,054    |   | 1,895,679    |   |
|                Total      current assets                 | 67,881,658   |   | 68,095,140   |   |
| Property,      plant and equipment, net                                                                                             | 20,364,034   |   | 20,233,827   |   |
| Costs      in excess of net assets of businesses acquired, net                                                                      | 20,798,913   |   | 20,798,913   |   |
| Other      assets                                                                                                                   | 274,924      |   | 283,023      |   |
|                Total      assets                              | $109,319,529 |   | $109,410,903 |   |
|                                                                                                                                |         |   |         |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                                           |         |   |         |   |
| Current      liabilities                                                                                                            |         |   |         |   |
|       Current      portion of long-term debt                                                          | $1,758,442   |   | $2,028,482   |   |
|       Accounts      payable                                                                           | 6,048,064    |   | 7,512,874    |   |
|       Accrued      salaries, wages and expenses                                                       | 5,870,860    |   | 6,023,857    |   |
|       Dividend      payable                                                                           | 827,140      |   | 827,147      |   |
|       Customers'      advances                                                                        | 585,952      |   | 260,698      |   |
|       Deferred      income taxes                                                                      | 197,743      |   | 197,743      |   |
|                Total      current liabilities            | 15,288,201   |   | 16,850,801   |   |
| Long-term      debt                                                                                                                 | 3,996,479    |   | 4,075,682    |   |
| Other      non-current liabilities                                                                                                  | 2,124,237    |   | 2,109,250    |   |
| Deferred      income taxes                                                                                                          | 3,149,259    |   | 3,132,002    |   |
|                Total      liabilities                    | 24,558,176   |   | 26,167,735   |   |
|                                                                                                                                |         |   |         |   |
|                                                                                                                                |         |   |         |   |
| Shareholders'      equity                                                                                                           |         |   |         |   |
|       Common      shares, $.10 par value; 18,000,000 shares                                           |         |   |         |   |
|           authorized,      15,928,679 and 15,928,810 shares issued,               |         |   |         |   |
|           respectively,      of which 889,780 shares were reacquired              |         |   |         |   |
|           and      held in treasury at both dates                                 | 1,592,868    |   | 1,592,881    |   |
|       Additional      paid-in capital                                                                 | 2,005,719    |   | 1,897,655    |   |
|       Retained      earnings                                                                          | 84,373,581   |   | 83,267,096   |   |
|       Accumulated      other comprehensive income                                                     | 1,644,076    |   | 1,340,427    |   |
|       Treasury      shares, at cost                                                                   | (4,854,891   | )      | (4,854,891   | )      |
|               Total      shareholders' equity                 | 84,761,353   |   | 83,243,168   |   |
|               Total      liabilities and shareholders' equity | $109,319,529 |   | $109,410,903 |   |
| See      accompanying notes to consolidated financial statements.                                                              |         |   |         |

----

|   | Three      Months EndedApril      30, |
|--------|---------------------------------------|
|   |

|   |       2008 |   |    2007 |   |
|--------|------------------------------------------|--------|------------------------|--------|

|                                                     |        |   |        |   |
|----------------------------------------------------------|-------------|--------|-------------|--------|
| Net      sales                                           | $22,656,474 |   | $21,373,563 |   |
| Cost      of goods sold                                  | 15,064,250  |   | 14,215,058  |   |
| Gross      profit                                        | 7,592,224   |   | 7,158,505   |   |
|                                                     |        |   |        |   |
| Operating      expenses (income)                         |        |   |        |   |
| Selling                                                  | 2,252,076   |   | 2,544,181   |   |
| General      and administrative                          | 2,643,919   |   | 2,483,853   |   |
| Gain      on sale of building                            | -           |   | (3,513,940  | )      |
|                                                     | 4,895,995   |   | 1,514,094   |   |
| Income      from operations                              | 2,696,229   |   | 5,644,411   |   |
|                                                     |        |   |        |   |
| Interest      expense                                    | (65,061     | )      | (80,152     | )      |
| Other      income, net                                   | 175,815     |   | 217,306     |   |
| Income      before taxes                                 | 2,806,983   |   | 5,781,565   |   |
|                                                     |        |   |        |   |
| Provision      for taxes                                 | 881,338     |   | 2,059,814   |   |
| Net      income                                          | $1,925,645  |   | $3,721,751  |   |
| Earnings      per share, basic (1)                       | $.13        |   | $.25        |   |
|                                                     |        |   |        |   |
| Earnings      per share, diluted (2)                     | $.13        |   | $.24        |   |
|                                                     |        |   |        |   |
| Cash      dividend per share – declared (3)        | $.0550      |   | $.0506      |   |
|                                                     |        |   |        |   |
| Cash      dividend per share – paid  (3) | $.0550      |   | $.0506      |   |

|   | (1) | Basic      earnings per share are based upon the weighted average number of shares      outstanding of 15,038,900 and 14,960,769 for the three-month periods ended      April 30, 2008 and 2007,respectively. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Diluted      earnings per share are based upon the weighted average number of shares      outstanding of 15,313,389 and 15,291,689 for the three-month periods ended      April 30, 2008 and 2007. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The      Board of Directors declared quarterly dividends of $.0550 per share      payable on March 11, 2008 and June 12, 2008 to shareholders of record as      of February 26, 2008 and May 29, 2008, respectively.  Quarterly      dividends of $.0506 per share were paid on March 14, 2007 and June 12,      2007 to shareholders of record as of February 28, 2007 and, May 29, 2007,      respectively. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| See      accompanying notes to consolidated financial      statements. |   |
|------------------------------------------------------------------------|--------|

----

|                                                       |       |   |       |     |          |     |       |    |
|-------------------------------------------------------|------------|--------|------------|----------|---------------|----------|------------|---------|
|                                                  |       |   |       |     | Accumulated   |     |       |    |
|                                                  |       |   | Additional |     | Other         |     |       |    |
|                                                  | Common     |   | Paid-in    | Retained | Comprehensive | Treasury |       |    |
|                                                  | Shares     |   | Capital    | Earnings | Income/(Loss) | Shares   | Total      |    |
| Balances,      January 31, 2008                       | $1,592,881 |   | $1,897,655 |     | $83,267,096   |     | $1,340,427 |    | ($4,854,891 | ) | $83,243,168 |   |
|                                                  |       |   |       |     |          |     |       |    |   |   |   |
| Comprehensive      income:                            |       |   |       |     |          |     |       |    |   |   |   |   |
|    Net      income                     | -          |   | -          |     | 1,925,645     |     | -          |    | - |   |   |   |
|    Pension      measurement            | -          |   | -          |     | 7,970         |     | -          |    | - |   |   |   |
|    Foreign      currency translation   |       |   |       |     |          |     |       |    |   |   |   |   |
| adjustment                                            | -          |   | -          |     | -             |     | 282,487    |    | - |   |   |   |
|    Interest      rate swap,            |       |   |       |     |          |     |       |    |   |   |   |   |
| net      of tax of ($12,630)                     | -          |   | -          |     | -             |     | 21,505     |    | - |   |   |   |
|    Securities      available for sale, |       |   |       |     |          |     |       |    |   |   |   |   |
| net      of tax of $202                               | -          |   | -          |     | -             |     | (343       | )  | - |   |   |   |
| Total      comprehensive income                       |       |   |       |     |          |     |       |    |   |   | 2,237,264 |   |
|                                                  |       |   |       |     |          |     |       |    |   |   |   |   |
| Dividends      declared, $.0550 per                   |       |   |       |     |          |     |       |    |   |   |   |   |
| share                                                 | -          |   | -          |     | (827,130      | )        | -          |    | - |   | (827,130 | ) |
| Stock-based      compensation                         | -          |   | 108,051    |     | -             |     | -          |    | - |   | 108,051 |   |
| Stock      option transactions                        | (13        | )      | 13         |     | -             |     | -          |    | -  |   | - |   |
| Balances,      April 30, 2008                         | $1,592,868 |   | $2,005,719 |     | $84,373,581   |     | $1,644,076 |    | ($4,854,891 | ) | $84,761,353 |   |

|                                                  |       |       |     |          |     |     |   |
|-------------------------------------------------------|------------|------------|----------|---------------|----------|----------|--------|
|                                                  |       |       |     | Accumulated   |     |     |   |
|                                                  |       | Additional |     | Other         |     |     |   |
|                                                  | Common     | Paid-in    | Retained | Comprehensive | Treasury |     |   |
|                                                  | Shares     | Capital    | Earnings | Income/(Loss) | Shares   | Total    |   |
| Balances,      January 31, 2007                       | $1,284,661 | $7,910,708 |     | $74,657,888   |     | ($33,471 | )      | ($11,506,654 | ) | $72,313,132 |   |
|                                                  |       |       |     |          |     |     |   |   |   |   |
| Comprehensive      income:                            |       |       |     |          |     |     |   |   |   |   |   |
|    Net      income                     | -          | -          |     | 3,721,751     |     | -        |   | - |   |   |   |
|    Adoption      of FIN No. 48         | -          | -          |     | (125,000      | )        | -        |   | - |   |   |   |
|    Foreign      currency translation   |       |       |     |          |     |     |   |   |   |   |   |
| adjustment                                            | -          | -          |     | -             |     | 234,333  |   | - |   |   |   |
|    Interest      rate swap,            |       |       |     |          |     |     |   |   |   |   |   |
| net      of tax of ($14,799)                     | -          | -          |     | -             |     | 25,198   |   | - |   |   |   |
|    Securities      available for sale, |       |       |     |          |     |     |   |   |   |   |   |
| net      of tax of ($1,409)                           | -          | -          |     | -             |     | 2,398    |   | - |   |   |   |
| Total      comprehensive income                       |       |       |     |          |     |     |   |   |   | 3,858,680 |   |
|                                                  |       |       |     |          |     |     |   |   |   |   |   |
| Dividends      declared, $.0506 per                   |       |       |     |          |     |     |   |   |   |   |   |
| share                                                 | -          | -          |     | (757,750      | )        | -        |   | - |   | (757,750 | ) |
| Stock-based      compensation                         | -          | 127,527    |     | -             |     | -        |   | - |   | 127,527 |   |
| Stock      option transactions                        | -          | 1,640      |     | -             |     | -        |   | 37,597 |   | 39,237 |   |
| Balances,      April 30, 2007                         | $1,284,661 | $8,039,875 |     | $77,496,889   |     | $228,458 |   | ($11,469,057 | ) | $75,580,826 |   |

----

|   |   |   |                    |
|--------|--------|--------|-------------------------|
|   |   |   | Three      Months Ended |
|   |   |   | April      30,          |
|   |   |   | 2008                    |   | 2007 |   |

| Cash      flows from operating activities                                                                                                                                      |   |   |        |   |        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|-------------|--------|
|    Net      income                                                                                                                                              |   |   | $1,925,645  |   | $3,721,751  |   |
|    Adjustments      to reconcile net income to net           cash      provided by operating activities: |   |   |        |   |        |   |
|        Depreciation      and amortization                                                                                                   |   |   | 473,225     |   | 417,784     |   |
|        Deferred      income taxes                                                                                                           |   |   | 4,686       |   | 904,929     |   |
|        (Gain)      loss on sale of property and equipment, net                                                                              |   |   | 2,611       |   | (3,513,998  | )      |
|        Stock-based      compensation                                                                                                        |   |   | 108,051     |   | 127,527     |   |
|        Allowance      for doubtful accounts                                                                                                 |   |   | 11,186      |   | 23,302      |   |
|        (Increase)      decrease in operating assets:                                                                                        |   |   |        |   |        |   |
|            Accounts      receivable                                                                                     |   |   | 4,092,724   |   | 1,938,770   |   |
|            Inventories                                                                                                  |   |   | (531,236    | )      | (1,739,073  | )      |
|            Prepaid      expenses, deposits and other current assets                                                     |   |   | 98,085      |   | (296,451    | )      |
|            Other      assets                                                                                            |   |   | 615         |   | (1,935      | )      |
|        Increase      (decrease) in operating liabilities:                                                                                   |   |   |        |   |        |   |
|            Accounts      payable and accrued expenses                                                                   |   |   | (1,749,774  | )      | 580,832     |   |
|            Customers’      advances                                                                               |   |   | 324,179     |   | 1,958,922   |   |
|            Other      non-current liabilities                                                                           |   |   | 14,986      |   | 40,581      |   |
|          Net      cash provided by operating activities                                                                           |   |   | 4,774,983   |   | 4,162,941   |   |
|                                                                                                                                                                           |   |   |        |   |        |   |
| Cash      flows from investing activities                                                                                                                                      |   |   |        |   |        |   |
|    Proceeds      from sale of property and equipment                                                                                                            |   |   | -           |   | 4,342,598   |   |
|    Acquisitions      of property and equipment                                                                                                                  |   |   | (404,379    | )      | (354,559    | )      |
|          Net      cash provided by (used in) investing activities                                                                 |   |   | (404,379    | )      | 3,988,039   |   |
|                                                                                                                                                                           |   |   |        |   |        |   |
| Cash      flows from financing activities                                                                                                                                      |   |   |        |   |        |   |
|    Reduction      of debt                                                                                                                                       |   |   | (366,906    | )      | (367,235    | )      |
|    Exercise      of stock options                                                                                                                               |   |   | -           |   | 39,238      |   |
|    Payment      of dividends                                                                                                                                    |   |   | (827,136    | )      | (757,390    | )      |
|          Net      cash used in financing activities                                                                               |   |   | (1,194,042  | )      | (1,085,387  | )      |
| Effect      of exchange rate changes on cash                                                                                                                                   |   |   | (22,941     | )      | (33,583     | )      |
|                                                                                                                                                                           |   |   |        |   |        |   |
| Net      increase in cash and cash equivalents                                                                                                                                 |   |   | 3,153,621   |   | 7,032,010   |   |
|                                                                                                                                                                           |   |   |        |   |        |   |
| Cash      and cash equivalents at February 1                                                                                                                                   |   |   | 21,906,877  |   | 17,322,194  |   |
| Cash      and cash equivalents at April 30                                                                                                                                     |   |   | $25,060,498 |   | $24,354,204 |   |
| See      accompanying notes to consolidated financial statements.                                                                                                              |   |   |        |   |

----

----

|   |             April 30, |
|--------|------------------------------------------------|
|   |             2007      |

| Net      sales      as previously reported                               | $20,816,113                                      |
|--------------------------------------------------------------------------|--------------------------------------------------|
| Reclassification      of freight out, and representative and distributor |                                             |
|                                                                     | commissions      previously netted against sales | 557,450 |
| Net      sales, as reported                                              | $21,373,563                                      |
|                                                                     |                                             |   |
| Cost      of goods sold as previously reported                           | $14,131,912                                      |
| Reclassification      of freight out previously netted against sales     | 83,146                                           |
| Cost      of goods sold, as reported                                     | $14,215,058                                      |
|                                                                     |                                             |   |
| Selling      expenses as previously reported                             | $2,069,877                                       |
| Reclassification      of representative and distributor commissions      |                                             |
|                                                                     | previously      netted against sales             | 474,304 |
| Selling      expenses, as reported                                       | $2,544,181                                       |

----

|                               |    Three      Months Ended |
|------------------------------------|-------------------------------------------|
|                               | April      30,                            |
|                               | 2008                                      |   | 2007 |
|  Expected      term (years)   | 5.0                                       |   | 5.0 |
|  Risk-free      interest rate | 3.53%      - 4.50%                        |   | 4.50%      - 4.58% |
|  Expected      volatility     | 29%                                       |   | 29%      - 30% |
|  Dividend      yield          | 1.86%      - 1.88%                        |   | 1.86%      - 3.39% |

----

|     |                                 |      |                | Weighted          |                 |
|----------|--------------------------------------|-----------|---------------------|-------------------|----------------------|
|     |                                 |      | Weighted            | Average           |                 |
|     |                                 |      | Average             | Remaining         | Aggregate            |
|     |                                 | Shares    | Exercise      Price | Life      (years) | Intrinsic      Value |
| Options: |                                 |      |                |              |
|     | Outstanding      at February 1, 2008 | 1,338,281 | $8.5972             | 7.14              |                 |
|     | Granted                              | -         | -                   |              |                 |
|     | Forfeited                            | 53,070    | $9.3388             |              |                 |
|     | Expired                              | -         | -                   |              |                 |
|     | Exercised                            | -         | -                   |              |                 |
|     | Outstanding      at April 30, 2008   | 1,285,211 | $8.5666             | 6.75              | $3,594,628           |
|     |                                 |      |                |              |                 |
|     | Exercisable      at April 30, 2008   | 936,686   | $7.5123             | 6.75              | $3,538,519           |

|                      |   | Options      Outstanding |                  | Options      Exercisable |
|---------------------------|--------|--------------------------|-----------------------|--------------------------|
|                      |   |                     | Weighted      Average |                     |   |   |   |
|                      |   |                     | Remaining             | Weighted      Average    |   |   | Weighted      Average |
|                      |   | Shares                   | Life      (years)     | Exercise      Price      |   | Shares | Exercise      Price |
| Range      of prices:     |   |                     |                  |                     |   |   |   |   |   |   |   |   |
| $4.11      – 4.99   |   | 43,974                   |                  | 1.67                     |   | $4.1648 |   |   | 43,974 |   | $4.1648 |   |
| $5.00      – 5.49   |   | 79,177                   |                  | 2.83                     |   | 5.1047 |   |   | 79,177 |   | 5.1047 |   |
| $5.50      – 6.99   |   | 238,403                  |                  | 4.40                     |   | 5.5301 |   |   | 238,403 |   | 5.5301 |   |
| $7.00      – 8.99   |   | 176,901                  |                  | 6.82                     |   | 7.4110 |   |   | 176,901 |   | 7.4110 |   |
| $9.00      – 9.99   |   | 326,684                  |                  | 6.89                     |   | 9.3065 |   |   | 326,684 |   | 9.3065 |   |
| $10.00      – 10.99 |   | 214,672                  |                  | 8.63                     |   | 10.8975 |   |   | 71,547 |   | 10.8925 |   |
| $11.00      – 11.99 |   | 205,400                  |                  | 9.62                     |   | 11.7500 |   |   | - |   | - |   |
|                      |   | 1,285,211                |                  | 6.75                     |   | $8.5666 |   |   | 936,686 |   | $7.5123 |   |

----

|                  | April      30,2008 |   | January      31,2008 |
|-----------------------|--------------------|--------|----------------------|
| Raw      materials    | $15,761,136        |   | $15,817,283          |
| Work      in progress | 3,344,151          |   | 2,384,413            |
| Finished      goods   | 2,810,663          |   | 3,056,531            |
|                  | $21,915,950        |   | $21,258,227          |

|                                              |                               | Three      Months Ended April      30, |
|---------------------------------------------------|------------------------------------|---------------------------------------------|
|                                              |      2008 |                                        |    2007 |
|   Cash      paid during the period for: |                               |                                        |   |
|      Interest            | $73,370                            |                                        | $88,237 |
|      Income      taxes   | 417,266                            |                                        | 376,903 |

|                                             | 2008     |   |
|--------------------------------------------------|----------|--------|
| Balance      at February 1, 2008                 | $179,000 |   |
| Increases      in tax positions for prior years  | -        |   |
| Decreases      in tax positions for prior years  | (59,000  | )      |
| Increases      in tax positions for current year | -        |   |
| Balance      at April 30, 2008                   | $120,000 |   |

----

|                                                                                              | April      30, |   | January      31, |
|---------------------------------------------------------------------------------------------------|----------------|--------|------------------|
|                                                                                              | 2008           |   | 2008             |
|                                                                                              |           |   |             |
| Bond      payable, bank, payable in quarterly installments of                                     |           |   |             |
|      $58,460,      plus interest at a rate of 16 basis points below      |           |   |             |
|      the      ninety day LIBOR rate (effective interest rate of 3.08%    |           |   |             |
|      at      April 30, 2008), maturing April, 2021, collateralized       |           |   |             |
|      by      the Telford, PA building                                    | $3,039,944     |   | $3,098,404       |
|                                                                                              |           |   |             |
| Note      payable, bank, payable in quarterly installments of                                     |           |   |             |
|      $300,000,      plus interest at a rate of 75 basis points over      |           |   |             |
|      the      ninety day LIBOR rate (effective interest rate of 3.99%    |           |   |             |
|      at      April 30, 2008), maturing October, 2008                     | 900,000        |   | 1,200,000        |
|                                                                                              |           |   |             |
| Note      payable, bank, payable in quarterly installments of                                     |           |   |             |
|      $39,038      (25,000 Euro), plus interest at a fixed rate of 3.82%, |           |   |             |
|      maturing      January, 2016                                         | 1,210,162      |   | 1,189,280        |
|                                                                                              |           |   |             |
| Line      of credit, $468,450 (300,000 Euro), payable upon demand,                                |           |   |             |
|      plus      interest at a rate of 70 basis points over the thirty day |           |   |             |
|      EURIBOR      rate (effective interest rate of 5.09% at              |           |   |             |
|      April      30, 2008)                                                | 468,450        |   | 445,980          |
|                                                                                              |           |   |             |
|                                                                                              | 5,618,556      |   | 5,933,664        |
| Less      current portion                                                                         | 1,758,442      |   | 2,028,482        |
|                                                                                              | 3,860,114      |   | 3,905,182        |
| Fair      market value of interest rate swap liability                                            | 136,365        |   | 170,500          |
| Long-term      portion                                                                            | $3,996,479     |   | $4,075,682       |

----

| Year      Ending |       |
|------------------|------------|
| January      31, |       |
| 2009             | $1,758,442 |
| 2010             | 389,992    |
| 2011             | 389,992    |
| 2012             | 389,992    |
| 2013             | 389,992    |
| Thereafter       | 2,300,146  |
|             | $5,618,556 |

|                                                              | April      30, |   | January      31, |   |
|-------------------------------------------------------------------|----------------|--------|------------------|--------|
|                                                              | 2008           |   | 2008             |   |
| Interest      rate swap, net of tax                               | ($85,910       | )      | ($107,415        | )      |
| Unrealized      loss on securities available-for sale, net of tax | (1,257         | )      | (914             | )      |
| Foreign      currency translation adjustment                      | 1,734,629      |   | 1,452,142        |   |
| Minimum      pension liability adjustment, net of tax             | (3,386         | )      | (3,386           | )      |
|                                                              | $1,644,076     |   | $1,340,427       |   |

----

|                                                                    | Three      Months EndedApril      30, |   |
|-------------------------------------------------------------------------|---------------------------------------|--------|
|                                                                    | 2008                                  |   | 2007 |   |
|      Interest      income                      | $151,506                              |   | $222,359 |   |
|      Other      miscellaneous income (expense) | 24,309                                |   | (5,053 | ) |
|                                                                    | $175,815                              |   | $217,306 |   |

|                                    | Three      Months EndedApril      30, |   |
|-----------------------------------------|---------------------------------------|--------|
|                                    |  2008                            |   |  2007 |   |
| Service      cost                       | $34,187                               |   | $37,064 |   |
| Interest      cost                      | 271,591                               |   | 260,041 |   |
| Expected      return on plan assets     | (330,793                              | )      | (314,875 | ) |
| Amortization      of transition asset   | (94                                   | )      | (371 | ) |
| Amortization      of prior service cost | 9,046                                 |   | 8,695 |   |
| Recognized      net actuarial loss      | 3,342                                 |   | 10,184 |   |
| Net      periodic benefit (income) cost | ($12,721                              | )      | $738 |   |

----

----

|   |                                                                                           |
|--------|------------------------------------------------------------------------------------------------|
|   |            Three Months Ended           April 30, |
|   |              2008                                                |   |             2007 |

| Net      sales                                       |        |   |        |
|------------------------------------------------------|-------------|--------|-------------|
| Product      recovery/pollution control technologies | $9,504,792  |   | $9,874,988  |
| Fluid      handling technologies                     | 6,988,583   |   | 6,093,669   |
| Mefiag      filtration technologies                  | 3,255,155   |   | 2,879,656   |
| Filtration/purification      technologies            | 2,907,944   |   | 2,525,250   |
|                                                 | $22,656,474 |   | $21,373,563 |
|                                                 |        |   |        |
| Income      from operations                          |        |   |        |
| Product      recovery/pollution control technologies | $892,251    |   | $677,734    |
| Fluid      handling technologies                     | 1,379,954   |   | 1,163,314   |
| Mefiag      filtration technologies                  | 159,128     |   | 179,433     |
| Filtration/purification      technologies            | 264,896     |   | 109,990     |
|                                                 | 2,696,229   |   | 2,130,471   |
| Gain      on sale of building                        | -           |   | 3,513,940   |
|                                                 | $2,696,229  |   | $5,644,411  |

|                                                 |          April 30, |   |          January 31, |
|------------------------------------------------------|-----------------------------------|--------|-------------------------------------|
|                                                 |     2008      |   |          2008        |
| Identifiable      assets                             |                              |   |                                |
| Product      recovery/pollution control technologies | $39,287,596                       |   | $40,509,227                         |
| Fluid      handling technologies                     | 23,203,106                        |   | 22,401,768                          |
| Mefiag      filtration technologies                  | 13,587,298                        |   | 12,810,694                          |
| Filtration/purification      technologies            | 9,187,624                         |   | 8,877,725                           |
|                                                 | 85,265,624                        |   | 84,599,414                          |
| Corporate                                            | 24,053,905                        |   | 24,811,489                          |
|                                                 | $109,319,529                      |   | $109,410,903                        |

----

|   |                                  |
|--------|---------------------------------------|
|   | Three      Months EndedApril      30, |

|   |                  2008 |   |  2007 |
|--------|------------------------------------------------------------------------------|--------|------------|

| Net      sales                                       |        |   |        |
|------------------------------------------------------|-------------|--------|-------------|
| Product      recovery/pollution control technologies | $9,504,792  |   | $9,874,988  |
| Fluid      handling technologies                     | 6,988,583   |   | 6,093,669   |
| Filtration/purification      technologies            | 6,163,099   |   | 5,404,906   |
|                                                 | $22,656,474 |   | $21,373,563 |
|                                                 |        |   |        |
| Income      from operations                          |        |   |        |
| Product      recovery/pollution control technologies | $892,251    |   | $677,734    |
| Fluid      handling technologies                     | 1,379,954   |   | 1,163,314   |
| Filtration/purification      technologies            | 424,024     |   | 289,423     |
|                                                 | 2,696,229   |   | 2,130,471   |
| Gain      on sale of building                        | -           |   | 3,513,940   |
|                                                 | $2,696,229  |   | $5,644,411  |

|   |         April 30, |   |         January 31, |
|--------|-----------------------------|--------|-------------------------------|

|   |               2008 |   |         2008 |
|--------|------------------------------------------------------------|--------|------------------------|

| Identifiable      assets                             |         |   |         |
|------------------------------------------------------|--------------|--------|--------------|
| Product      recovery/pollution control technologies | $39,287,596  |   | $40,509,227  |
| Fluid      handling technologies                     | 23,203,106   |   | 22,401,768   |
| Filtration/purification      technologies            | 22,774,922   |   | 21,688,419   |
|                                                 | 85,265,624   |   | 84,599,414   |
| Corporate                                            | 24,053,905   |   | 24,811,489   |
|                                                 | $109,319,529 |   | $109,410,903 |

----

|   | /s/      Margolis & Company, P.C. |
|--------|---------------------------------------|
|   | Certified      Public Accountants     |

----

|                                     |   | Three      Months EndedApril      30,                         |
|------------------------------------------|--------|---------------------------------------------------------------|
|                                     |   |
|                                     |   |     2008                                  |   |     2007 |   |
|                                     |   |                                                          |   |
| Net      sales                           |   | 100.0%                                                        |   | 100.0% |   |
| Cost      of goods sold                  |   | 66.5%                                                         |   | 66.5% |   |
| Gross      profit                        |   | 33.5%                                                         |   | 33.5% |   |
|                                     |   |                                                          |   |   |   |
| Selling      expenses                    |   | 9.9%                                                          |   | 11.9% |   |
| General      and administrative expenses |   | 11.7%                                                         |   | 11.6% |   |
| Gain      on sale of building            |   |           - |   | (16.4% | ) |
| Income      from operations              |   | 11.9%                                                         |   | 26.4% |   |
|                                     |   |                                                          |   |   |   |
| Interest      expense                    |   | (.3%                                                          | ) | (.4% | ) |
| Other      income, net                   |   | 0.8%                                                          |   | 1.0% |   |
| Income      before taxes                 |   | 12.4%                                                         |   | 27.0% |   |
|                                     |   |                                                          |   |   |   |
| Provision      for taxes                 |   | 3.9%                                                          |   | 9.6% |   |
| Net      income                          |   | 8.5%                                                          |   | 17.4% |   |

----

----

----

----

| ·   | the      write-down of costs in excess of net assets of businesses acquired      (goodwill), as a result of the determination that the acquired business is      impaired.  Our Flex-Kleen business unit, which initially      performed well after being acquired by Met-Pro, thereafter had several      years of declining performance which we attributed primarily to a general      weakness in its served markets, followed by improved performance in the      fiscal years ended January 31, 2008, 2007 and 2006.  During the      fiscal year ended January 31, 2008, we performed an impairment analysis of      the $11.1 million of goodwill that the Company carries for Flex-Kleen and      concluded that no impairment had occurred.  For the fiscal year      ended January 31, 2008, the actual net sales and operating profit for our      Flex-Kleen business unit have exceeded the projections used in our annual      impairment model.  For the three-month period ended April 30,      2008, the annualized projection for net sales and operating profit for our      Flex-Kleen business unit currently exceeds the projections used in our      annual impairment model for the fiscal year ended January 31, 2009, but      this projection is a forward-looking statement where the actual results      may not be as we presently project; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | materially      adverse changes in economic conditions in the markets served by us or in      significant customers of ours; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | material      changes in available technology; |
|--------------------|------------------------------------------------|

| ·   | adverse      developments in the asbestos cases that have been filed against the      Company, including without limitation the exhaustion of insurance      coverage, the imposition of punitive damages or other adverse developments      in the availability of insurancecoverage; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes      in accounting rules promulgated by regulatory agencies, including the SEC,      which could result in an impact onearnings; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      cost of compliance with Sarbanes-Oxley and other applicable legal and      listing requirements, and the unanticipated possibility that Met-Pro may      not meet these requirements; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | weaknesses      in our internal control over financial reporting, which either alone or      combined with actions by our employees intended to circumvent our internal      control over financial reporting, to violate our policies, or to commit      fraud or other bad acts, could lead to incorrect reporting of financial      results.  During the fiscal year January 31, 2008, we restated      our financial statements for the fiscal quarters ended October 31, 2006      through October 31, 2007 as well as for the fiscal year ended January 31,      2007 as a result of revenue recognition errors and other financial      statement errors that we made due to material weaknesses in internal      control over financial reporting that was exploited by an employee who      sought to circumvent our internal controls and other policies and      procedures.  Although we have instituted new controls and      procedures intended to improve our control over revenue recognition and      believe that our internal control over financial reporting as of April 30,      2008 is effective, there are limits to any control system and we cannot      give absolute assurance that our internal control is effective or that      financial statement misstatements will not occur or that policy violations      and/or fraud within the Company will notoccur; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | unexpected      results in our product developmentactivities; |
|--------------------|---------------------------------------------------------------|

| ·   | loss      of key customers; |
|--------------------|-----------------------------|

| ·   | changes      in product mix and the cost of materials, with effect on      margins; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | changes      in our existing management; |
|--------------------|------------------------------------------|

| ·   | exchange      rate fluctuations; |
|--------------------|----------------------------------|

| ·   | changes      in federal laws, state laws andregulations; |
|--------------------|----------------------------------------------------------|

| ·   | lower      than anticipated return on investments in the Company’s defined benefit      plans, which could affect the amount of the Company’s pension      liabilities; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      assertion of litigation claims that the Company’s products, including      products produced by companies acquired by the Company, infringe third      party patents or have caused injury, loss or  damage; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      effect of acquisitions and other strategic  ventures; |
|--------------------|----------------------------------------------------------------|

| ·   | failure      to properly quote and/or execute customer orders, including      misspecifications, design, engineering or production    errors; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      cancellation or delay of purchase orders or  shipments; |
|--------------------|------------------------------------------------------------------|

| ·   | losses      related to international sales;and/or |
|--------------------|---------------------------------------------------|

| ·   | failure      in execution of acquisitionstrategy. |
|--------------------|---------------------------------------------------|

We are exposed to certain market risks, primarily changes ininterest rates.  There have been no significant changes in ourexposure to market risks since January 31, 2008.  Refer to“Item 7A. Quantitative and Qualitative Disclosure About Market Risks” ofthe Company’s Annual Report on Form 10-K for the fiscal year endedJanuary 31, 2008 for additional information.

----

----

| (a)   | During      the first quarter ended April 30, 2008, we did not sell any of our equity      securities that were not registered under the Securities Act of      1933. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Not      applicable. |
|-----------------|----------------------|

| (c)   | The      following table summarizes Met-Pro’s purchases of its Common Shares for      the quarter ended April 30, 2008: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| Period                   |   | TotalNumber      of SharesPurchased |   | AveragePrice      PaidPer      Share                                             |   | TotalNumber      ofSharesPurchasedAs      Part ofPubliclyAnnouncedPlans      orPrograms |   | MaximumNumber      ofSharesThat      MayYet      bePurchasedUnder      thePlan      orPrograms |           (1) |
|--------------------------|--------|-------------------------------------|--------|----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|
|                     |   |                                |   |                                                                             |   |                                                                                    |   |                                                                                           |                                                            |
| February      1-29, 2008 |   | 0                                   |   | $        -                               |   | 0                                                                                       |   | 310,019                                                                                        |                                                            |
| March      1-31, 2008    |   | 0                                   |   | -                                                                                |   | 0                                                                                       |   | 310,019                                                                                        |                                                            |
| April      1-30, 2008    |   | 0                                   |   | -                                                                                |   | 0                                                                                       |   | 310,019                                                                                        |                                                            |
| Total                    |   | 0                                   |   |      $        - |   | 0                                                                                       |   | 310,019                                                                                        |                                                            |

| (1)   | On      December 15, 2000, our Board of Directors authorized a Common Share      repurchase program that was publicly announced on December 19, 2000, for      up to 711,111 shares.  The program has no fixed expiration      date. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)                               |   | Exhibits      Required by Item 601 of Regulation S-K |
|-----------------------------------|--------|------------------------------------------------------|
|                              |   |                                                 |
|                              |   | Exhibit      No.                                     |   | Description |
|                              |   |                                                 |   |   |
|                              |   | (31.1)                                               |   | Certification      of the Chief Executive Officer |
|                              |   |                                                 |   | Pursuant      to Section 302 of the |
|                              |   |                                                 |   | Sarbanes-Oxley      Act of 2002.* |
|                              |   |                                                 |   |   |
|                              |   | (31.2)                                               |   | Certification      of the Chief Financial Officer |
|                              |   |                                                 |   | Pursuant      to Section 302 of the |
|                              |   |                                                 |   | Sarbanes-Oxley      Act of 2002.* |
|                              |   |                                                 |   |   |
|                              |   | (32.1)                                               |   | Certification      of the Chief Executive Officer |
|                              |   |                                                 |   | Pursuant      to 18 U.S.C. Section 1350, as adopted |
|                              |   |                                                 |   | Pursuant      to Section 906 of Sarbanes-Oxley Act of 2002.* |
|                              |   |                                                 |   |   |
|                              |   | (32.2)                                               |   | Certification      of the Chief Financial Officer |
|                              |   |                                                 |   | Pursuant      to 18 U.S.C. Section 1350, as adopted |
|                              |   |                                                 |   | Pursuant      to Section 906 of Sarbanes-Oxley Act of 2002.* |
|                              |   |                                                 |   |   |
| *  Filed      herewith. |   |                                                 |

----

|   | Pursuant      to the requirements of the Securities Exchange Act of 1934, the registrant      has duly caused this report to be signed on its behalf by the undersigned      thereunto duly authorized. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|              |   | Met-Pro      Corporation                     |
|-------------------|--------|----------------------------------------------|
|              |   | (Registrant)                                 |
|              |   |                                         |
|              |   |                                         |
| June      3, 2008 |   | /s/      Raymond J. De Hont                  |
|              |   | Raymond      J. De Hont                      |
|              |   | Chairman,      President and Chief Executive |
|              |   | Officer                                      |
|              |   |                                         |
|              |   |                                         |
| June      3, 2008 |   | /s/      Gary J. Morgan                      |
|              |   | Gary      J. Morgan                          |
|              |   | Senior      Vice President of Finance,       |
|              |   | Secretary      and Treasurer, Chief          |
|              |   | Financial      Officer, Chief Accounting     |
|              |   | Officer      and Director                    |
|              |   |                                         |
|              |   |                                         |

----