----

----

| 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 July 31, 2009 and January 31, 2009 | 2 |
|                                 | Consolidated Statement of Operations                      |   |
|                                 |                                                      | for the six-month and three-month periods ended July 31, 2009 and 2008 | 3 |
|                                 | Consolidated Statement of Shareholders’ Equity      |   |
|                                 |                                                      | for the six-month periods ended July 31, 2009 and 2008 | 4 |
|                                 | Consolidated Statement of Cash Flows                      |   |
|                                 |                                                      | for the six-month periods ended July 31, 2009 and 2008 | 5 |
|                                 | Notes to Consolidated Financial Statements                | 6 |
|                                 | Reports of Independent Registered Public Accounting Firms | 16 |
|                                 |                                                      |   |
| Item 2.                              |                                                      | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 18 |
|                                 |                                                      |   |   |
| Item 3.                              |                                                      | Qualitative and Quantitative Disclosures about Market Risk | 25 |
|                                 |                                                      |   |   |
| Item 4.                              |                                                      | Controls and Procedures | 25 |
|                                 |                                                      |   |   |
|                                 |                                                      |   |   |
| PART II – OTHER INFORMATION    |                                                      |
|                                 |                                                      |   |   |
| Item 1.                              |                                                      | Legal Proceedings | 26 |
|                                 |                                                      |   |   |
| Item 1A.                             |                                                      | Risk Factors | 26 |
|                                 |                                                      |   |   |
| Item 2.                              |                                                      | Unregistered Sales of Equity Securities and Use of Proceeds | 27 |
|                                 |                                                      |   |   |
| Item 3.                              |                                                      | Defaults Upon Senior Securities | 27 |
|                                 |                                                      |   |   |
| Item 4.                              |                                                      | Submission of Matters to a Vote of Security Holders | 28 |
|                                 |                                                      |   |   |
| Item 5.                              |                                                      | Other Information | 28 |
|                                 |                                                      |   |   |
| Item 6.                              |                                                      | Exhibits | 29 |
|                                 |                                                      |   |   |
|                                 |                                                      |   |   |
| SIGNATURES                           | 30                                                        |

----

Index

CONSOLIDATED BALANCE SHEET

| PART I – FINANCIAL INFORMATION                                                                                                 |         |   |         |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|--------------|--------|
|                                                                                                                                 |         |   |         |   |
| Item 1.  Financial Statements                                                                                              |         |   |         |   |
|                                                                                                                                 |         |   |         |   |
|                                                                                                                                 | July 31,     |   | January 31,  |   |
| ASSETS                                                                                                                               | 2009         |   | 2009         |   |
| Current assets                                                                                                                       |         |   |         |   |
|       Cash and cash equivalents                                                                        | $29,194,993  |   | $21,749,653  |   |
|       Accounts receivable, net of allowance for doubtful                                               |         |   |         |   |
|          accounts of approximately $238,000 and                                         |         |   |         |   |
|          $167,000, respectively                                                         | 13,893,905   |   | 20,177,672   |   |
|       Inventories                                                                                      | 18,205,092   |   | 20,236,865   |   |
|       Prepaid expenses, deposits and other current assets                                              | 1,323,203    |   | 1,997,542    |   |
|                Total current assets                       | 62,617,193   |   | 64,161,732   |   |
|                                                                                                                                 |         |   |         |   |
| Property, plant and equipment, net                                                                                                   | 20,036,567   |   | 19,389,597   |   |
| Costs in excess of net assets of businesses acquired, net                                                                            | 20,798,913   |   | 20,798,913   |   |
| Other assets                                                                                                                         | 669,402      |   | 402,062      |   |
|                Total assets                                    | $104,122,075 |   | $104,752,304 |   |
|                                                                                                                                 |         |   |         |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                           |         |   |         |   |
| Current liabilities                                                                                                                  |         |   |         |   |
|       Current portion of long-term debt                                                                | $965,741     |   | $746,042     |   |
|       Accounts payable                                                                                 | 3,728,442    |   | 5,464,629    |   |
|       Accrued salaries, wages and expenses                                                             | 3,757,040    |   | 4,546,199    |   |
|       Dividend payable                                                                                 | 876,007      |   | 876,007      |   |
|       Customers’ advances                                                                        | 351,803      |   | 356,008      |   |
|       Deferred income taxes                                                                            | 250,782      |   | 250,782      |   |
|                Total current liabilities                  | 9,929,815    |   | 12,239,667   |   |
|                                                                                                                                 |         |   |         |   |
| Long-term debt                                                                                                                       | 3,815,542    |   | 3,753,228    |   |
| Other non-current liabilities                                                                                                        | 9,068,469    |   | 8,855,912    |   |
| Deferred income taxes                                                                                                                | 1,158,904    |   | 1,126,016    |   |
|                Total liabilities                          | 23,972,730   |   | 25,974,823   |   |
|                                                                                                                                 |         |   |         |   |
| Shareholders’ equity                                                                                                           |         |   |         |   |
|       Common shares, $.10 par value; 36,000,000 shares                                                 |         |   |         |   |
|           authorized, 15,928,679 shares issued,                                    |         |   |         |   |
|           of which 1,328,570 shares were reacquired                                |         |   |         |   |
|           and held in treasury at the respective dates                             | 1,592,868    |   | 1,592,868    |   |
|       Additional paid-in capital                                                                       | 2,794,946    |   | 2,465,193    |   |
|       Retained earnings                                                                                | 90,110,613   |   | 89,727,308   |   |
|       Accumulated other comprehensive loss                                                             | (3,665,487   | )      | (4,324,293   | )      |
|       Treasury shares, at cost                                                                         | (10,683,595  | )      | (10,683,595  | )      |
|               Total shareholders’ equity                 | 80,149,345   |   | 78,777,481   |   |
|               Total liabilities and shareholders’ equity | $104,122,075 |   | $104,752,304 |   |
| See accompanying notes to consolidated financial statements.                                                                         |         |   |         |

----

Index

CONSOLIDATED STATEMENT OF OPERATIONS

|                                         | Six Months Ended |   | Three Months Ended |   |
|----------------------------------------------|------------------|--------|--------------------|--------|
|                                         | July 31,         |   | July 31,      |   |
|                                         | 2009             |   | 2008               |   | 2009 |   | 2008 |   |
|                                         |             |   |               |   |   |   |   |   |
| Net sales                                    | $40,526,591      |   | $50,802,192        |   | $20,885,583 |   | $28,145,718 |   |
| Cost of goods sold                           | 26,407,670       |   | 33,576,920         |   | 13,779,630 |   | 18,512,670 |   |
| Gross profit                                 | 14,118,921       |   | 17,225,272         |   | 7,105,953 |   | 9,633,048 |   |
|                                         |             |   |               |   |   |   |   |   |
| Operating expenses                           |             |   |               |   |   |   |   |   |
|    Selling                    | 5,048,933        |   | 4,972,595          |   | 2,520,401 |   | 2,720,519 |   |
|    General and administrative | 5,828,277        |   | 5,551,257          |   | 2,815,950 |   | 2,907,338 |   |
|                                         | 10,877,210       |   | 10,523,852         |   | 5,336,351 |   | 5,627,857 |   |
| Income from operations                       | 3,241,711        |   | 6,701,420          |   | 1,769,602 |   | 4,005,191 |   |
|                                         |             |   |               |   |   |   |   |   |
| Interest expense                             | (107,455         | )      | (128,766           | )      | (53,632 | ) | (63,705 | ) |
| Other income, net                            | 76,752           |   | 298,930            |   | 62,787 |   | 123,115 |   |
| Income before taxes                          | 3,211,008        |   | 6,871,584          |   | 1,778,757 |   | 4,064,601 |   |
|                                         |             |   |               |   |   |   |   |   |
| Provision for taxes                          | 1,075,691        |   | 2,242,978          |   | 595,889 |   | 1,361,640 |   |
| Net income                                   | $2,135,317       |   | $4,628,606         |   | $1,182,868 |   | $2,702,961 |   |
|                                         |             |   |               |   |   |   |   |   |
| Earnings per share, basic (1)                | $.15             |   | $.31               |   | $.08 |   | $.18 |   |
| Earnings per share, diluted (2)              | $.15             |   | $.30               |   | $.08 |   | $.18 |   |
| Cash dividend per share – declared (3) | $.12             |   | $.11               |   | $.06 |   | $.055 |   |
| Cash dividend per share – paid (3)     | $.12             |   | $.11               |   | $.06 |   | $.055 |   |

|   | (1)    | Basic earnings per share are based upon the weighted average number of shares outstanding of 14,600,109 and 15,044,176 for the six-month periods ended July 31, 2009 and 2008, respectively, and 14,600,109 and 15,040,659 for the three-month periods ended July 31, 2009 and 2008, respectively.                                                                                                                                                             |   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | (2)    | Diluted earnings per share are based upon the weighted average number of shares outstanding of 14,672,811 and 15,402,394 for the six-month periods ended July 31, 2009 and 2008, respectively, and 14,660,511 and 15,375,261 for the three-month periods ended July 31, 2009 and 2008, respectively.                                                                                                                                                           |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | (3)    | The Board of Directors declared quarterly dividends of $.06 per share payable on March 12, 2009, June 12, 2009 and September 11, 2009 to shareholders of record as of February 26, 2009, May 29, 2009 and August 28, 2009, respectively.  Quarterly dividends of $.055 per share were paid on March 11, 2008, June 12, 2008 and September10, 2008 to shareholders of record as of February 26, 2008, May 29, 2008 and August 27, 2008, respectively. |   |

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

----

Index

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

|                                                                 |       |   |       |       |     |   | Accumulated   |   |     |        |   |   |
|----------------------------------------------------------------------|------------|--------|------------|------------|----------|--------|---------------|--------|----------|-------------|--------|--------|
|                                                                 |       |   | Additional |       |     |   | Other         |   |     |        |   |   |
|                                                                 | Common     |   | Paid-in    |       | Retained |   | Comprehensive |   | Treasury |        |   |   |
|                                                                 | Shares     |   | Capital    |       | Earnings |   | Income/(Loss) |   | Shares   |        | Total  |   |
| Balances, January 31, 2009                                           | $1,592,868 |   |       | $2,465,193 |     |   | $89,727,308   |   |     | ($4,324,293 | )      |   | ($10,683,595 | ) |   | $78,777,481 |   |
|                                                                 |       |   |       |       |     |   |          |   |     |        |   |   |   |   |   |   |   |
| Comprehensive income:                                                |       |   |       |       |     |   |          |   |     |        |   |   |   |   |   |   |   |
|    Net income                                         | -          |   |       | -          |     |   | 2,135,317     |   |     | -           |   |   | - |   |   |   |   |
|    Foreign currency translation                       |       |   |       |       |     |   |          |   |     |        |   |   |   |   |   |   |   |
|      adjustment                             | -          |   |       | -          |     |   | -             |   |     | 592,019     |   |   | - |   |   |   |   |
|    Interest rate swap,                                |       |   |       |       |     |   |          |   |     |        |   |   |   |   |   |   |   |
|      net of tax of ($39,224)           | -          |   |       | -          |     |   | -             |   |     | 66,787      |   |   | - |   |   |   |   |
|        Total comprehensive income |       |   |       |       |     |   |          |   |     |        |   |   |   |   |   | 2,794,123 |   |
|                                                                 |       |   |       |       |     |   |          |   |     |        |   |   |   |   |   |   |   |
| Dividends paid, $.06 per share                                       | -          |   |       | -          |     |   | (876,006      | )      |     | -           |   |   | - |   |   | (876,006 | ) |
| Dividends declared, $.06 per share                                   | -          |   |       | -          |     |   | (876,006      | )      |     | -           |   |   | - |   |   | (876,006 | ) |
| Stock-based compensation                                             | -          |   |       | 329,753    |     |   | -             |   |     | -           |   |   | - |   |   | 329,753 |   |
| Balances, July 31, 2009                                              | $1,592,868 |   |       | $2,794,946 |     |   | $90,110,613   |   |     | ($3,665,487 | )      |   | ($10,683,595 | ) |   | $80,149,345 |   |

|                                                                 |       |   |       |       |     |   | 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                                         | -          |   |       | -          |     |   | 4,628,606     |   |     | -          |   |   | - |   |   |   |   |
|    Pension measurement                                | -          |   |       | -          |     |   | 7,970         |   |     | -          |   |   | - |   |   |   |   |
|    Foreign currency translation                       |       |   |       |       |     |   |          |   |     |       |   |   |   |   |   |   |   |
|      adjustment                             | -          |   |       | -          |     |   | -             |   |     | 250,052    |   |   | - |   |   |   |   |
|    Interest rate swap,                                |       |   |       |       |     |   |          |   |     |       |   |   |   |   |   |   |   |
|      net of tax of ($31,609)           | -          |   |       | -          |     |   | -             |   |     | 53,820     |   |   | - |   |   |   |   |
|    Securities available for sale,                     |       |   |       |       |     |   |          |   |     |       |   |   |   |   |   |   |   |
|      net of tax of $590                     | -          |   |       | -          |     |   | -             |   |     | (1,003     | )      |   | - |   |   |   |   |
|        Total comprehensive income |       |   |       |       |     |   |          |   |     |       |   |   |   |   |   | 4,939,445 |   |
|                                                                 |       |   |       |       |     |   |          |   |     |       |   |   |   |   |   |   |   |
| Dividends paid, $.055 per share                                      | -          |   |       | -          |     |   | (827,131      | )      |     | -          |   |   | - |   |   | (827,131 | ) |
| Dividends declared, $.055 per share                                  | -          |   |       | -          |     |   | (827,140      | )      |     | -          |   |   | - |   |   | (827,140 | ) |
| Stock-based compensation                                             | -          |   |       | 216,102    |     |   | -             |   |     | -          |   |   | - |   |   | 216,102 |   |
| Stock option transactions                                            | -          |   |       | 91,805     |     |   | -             |   |     | -          |   |   | 376,631 |   |   | 468,436 |   |
| Purchase of 37,327 treasury shares                                   | -          |   |       | -          |     |   | -             |   |     | -          |   |   | (552,255 | ) |   | (552,255 | ) |
| Common share adjustment                                              | (13        | )      |       | 13         |     |   | -             |   |     | -          |   |   | - |   |   | - |   |
| Balances, July 31, 2008                                              | $1,592,868 |   |       | $2,205,575 |     |   | $86,249,401   |   |     | $1,643,296 |   |   | ($5,030,515 | ) |   | $86,660,625 |   |

----

Index

CONSOLIDATED STATEMENT OF CASH FLOWS

|                                                                                                          |   |   |             |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                          |   |   | Six Months Ended |   |
|                                                                                                          |   |   | July 31,         |   |
|                                                                                                          |   |   | 2009             |   | 2008 |   |
|                                                                                                          |   |   |             |   |   |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                              |
|                                                                                                          |   |   |             |   |   |   |
| Cash flows from operating activities                                                                          |   |   |             |   |   |   |
|    Net income                                                                                  |   |   | $2,135,317       |   | $4,628,606 |   |
|    Adjustments to reconcile net income to net                                                  |   |   |             |   |   |   |
|            cash provided by operating activities:      |   |   |             |   |   |   |
|        Depreciation and amortization                                       |   |   | 980,752          |   | 956,311 |   |
|        Deferred income taxes                                               |   |   | (1,195           | )      | 4,075 |   |
|        (Gain) on sale of property and equipment, net                       |   |   | (13,695          | )      | (7,389 | ) |
|        Stock-based compensation                                            |   |   | 329,753          |   | 216,102 |   |
|        Allowance for doubtful accounts                                     |   |   | 71,397           |   | 18,454 |   |
|        Decrease in operating assets:                                       |   |   |             |   |   |   |
|            Accounts receivable                         |   |   | 6,484,484        |   | 479,529 |   |
|            Inventories                                 |   |   | 2,250,735        |   | 190,093 |   |
|            Prepaid expenses, deposits and other assets |   |   | 425,126          |   | 552,804 |   |
|        Increase (decrease) in operating liabilities:                       |   |   |             |   |   |   |
|            Accounts payable and accrued expenses       |   |   | (2,768,636       | )      | (2,887,814 | ) |
|            Customers’ advances                   |   |   | (4,960           | )      | 539,328 |   |
|            Other non-current liabilities               |   |   | 212,557          |   | (458,128 | ) |
|          Net cash provided by operating activities               |   |   | 10,101,635       |   | 4,231,971 |   |
|                                                                                                          |   |   |             |   |   |   |
| Cash flows from investing activities                                                                          |   |   |             |   |   |   |
|    Proceeds from sale of property and equipment                                                |   |   | 20,382           |   | 10,000 |   |
|    Acquisitions of property and equipment                                                      |   |   | (1,262,800       | )      | (962,458 | ) |
|          Net cash used in investing activities                   |   |   | (1,242,418       | )      | (952,458 | ) |
|                                                                                                          |   |   |             |   |   |   |
| Cash flows from financing activities                                                                          |   |   |             |   |   |   |
|    Proceeds from new borrowing                                                                 |   |   | 485,336          |   | - |   |
|    Reduction of debt                                                                           |   |   | (238,287         | )      | (764,991 | ) |
|    Exercise of stock options                                                                   |   |   | -                |   | 468,436 |   |
|    Payment of dividends                                                                        |   |   | (1,752,013       | )      | (1,654,277 | ) |
|    Acquisition of treasury stock                                                               |   |   | -                |   | (552,255 | ) |
|          Net cash used in financing activities                   |   |   | (1,504,964       | )      | (2,503,087 | ) |
| Effect of exchange rate changes on cash                                                                       |   |   | 91,087           |   | (18,903 | ) |
|                                                                                                          |   |   |             |   |   |   |
| Net increase in cash and cash equivalents                                                                     |   |   | 7,445,340        |   | 757,523 |   |
|                                                                                                          |   |   |             |   |   |   |
| Cash and cash equivalents at February 1                                                                       |   |   | 21,749,653       |   | 21,906,877 |   |
| Cash and cash equivalents at July 31                                                                          |   |   | $29,194,993      |   | $22,664,400 |   |
| See accompanying notes to consolidated financial statements.                                                  |   |   |             |   |

----

Index

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

----

Index

----

Index

|                          | Six Months Ended |
|-------------------------------|------------------|
|                          | July 31,         |
|                          | 2009             |   | 2008 |
|  Expected term (years)   | 3.0 - 5.0        |   | 5.0 |
|  Risk-free interest rate | 1.90% - 4.50%    |   | 3.53% - 4.50% |
|  Expected volatility     | 29% - 39%        |   | 29% |
|  Dividend yield          | 1.86% - 2.80%    |   | 1.86% - 1.88% |

----

Index

|     |                            |      |   |           |   | Weighted     |   |            |
|----------|---------------------------------|-----------|--------|----------------|--------|--------------|--------|-----------------|
|     |                            |      |   | Weighted       |   | Average      |   |            |
|     |                            |      |   | Average        |   | Remaining    |   | Aggregate       |
|     |                            | Shares    |   | Exercise Price |   | Life (years) |   | Intrinsic Value |
| Options: |                            |      |   |           |   |         |   |            |   |   |
|     | Outstanding at February 1, 2009 | 1,193,533 |   | $9.5374        |   |         | 7.28   |            |   |   |   |
|     | Granted                         | 5,000     |   | $8.5600        |   |         |   |            |   |   |   |
|     | Forfeited                       | 12,446    |   | $9.6440        |   |         |   |            |   |   |   |
|     | Expired                         | -         |   | -              |   |         |   |            |   |   |   |
|     | Exercised                       | -         |   | -              |   |         |   |            |   |   |   |
|     | Outstanding at July 31, 2009    | 1,186,087 |   | $9.5322        |   |         | 6.76   |            |   | $1,736,476 |   |
|     |                            |      |   |           |   |         |   |            |   |   |   |
|     | Exercisable at July 31, 2009    | 778,099   |   | $8.5474        |   |         | 6.76   |            |   | $1,736,476 |   |

|                 |   | 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   |   | 9,956               |             | 0.38                |   | $4.1659 |   |   | 9,956 |   | $4.1659 |   |
| $5.00 – 5.49   |   | 24,180              |             | 1.58                |   | 5.1047 |   |   | 24,180 |   | 5.1047 |   |
| $5.50 – 6.99   |   | 146,259             |             | 3.12                |   | 5.5308 |   |   | 146,259 |   | 5.5308 |   |
| $7.00 – 8.99   |   | 133,896             |             | 5.28                |   | 7.4539 |   |   | 133,896 |   | 7.4539 |   |
| $9.00 – 9.99   |   | 269,791             |             | 5.72                |   | 9.2893 |   |   | 269,791 |   | 9.2893 |   |
| $10.00 – 10.99 |   | 190,005             |             | 7.38                |   | 10.8975 |   |   | 125,554 |   | 10.8975 |   |
| $11.00 – 11.99 |   | 412,000             |             | 8.87                |   | 11.5469 |   |   | 68,463 |   | 11.75 |   |
|                 |   | 1,186,087           |             | 6.76                |   | $9.5322 |   |   | 778,099 |   | $8.5474 |   |

----

Index

|             | July 31,    |   | January 31, |
|------------------|-------------|--------|-------------|
|             | 2009        |   | 2009        |
| Raw materials    | $13,838,433 |   | $15,416,249 |
| Work in progress | 1,467,347   |   | 2,013,789   |
| Finished goods   | 2,899,312   |   | 2,806,827   |
|             | $18,205,092 |   | $20,236,865 |

|                             | Six Months Ended July 31, |
|----------------------------------|--------------------------------|
|                             | 2009                           |   | 2008 |
| Cash paid during the period for: |                           |   |   |
| Interest                         | $106,323                       |   | $137,711 |
| Income taxes                     | 501,337                        |   | 2,399,858 |

|                                        |   | 2009    |
|---------------------------------------------|--------|---------|
| Balance at February 1, 2009                 |   | $40,000 |
| Increases in tax positions for prior years  |   | -       |
| Decreases in tax positions for prior years  |   | -       |
| Increases in tax positions for current year |   | -       |
| Balance at July 31, 2009                    |   | $40,000 |

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Index

|                                                           | July 31,   |   | January 31, |
|----------------------------------------------------------------|------------|--------|-------------|
|                                                           | 2009       |   | 2009        |
|                                                           |       |   |        |
| Bond payable, bank, payable in quarterly installments of       |       |   |        |
| $58,460, plus interest at a rate equal to the greater of       |       |   |        |
| (i) 16 basis points below the ninety day LIBOR rate       |       |   |        |
| or (ii) 250 basis points (effective interest rate of 2.50%     |       |   |        |
| at July 31, 2009), maturing April, 2021, collateralized        |       |   |        |
| by the Telford, PA building                                    | $2,747,641 |   | $2,864,562  |
|                                                           |       |   |        |
| Note payable, bank, payable in quarterly installments of       |       |   |        |
| $35,632 (25,000 Euro), plus interest at a fixed rate of 3.82%, |       |   |        |
| maturing January, 2016                                         | 926,445    |   | 896,350     |
|                                                           |       |   |        |
| Equipment note, payable in monthly installments of             |       |   |        |
| $13,482, no interest, maturing March 2012                      | 431,410    |   | -           |
|                                                           |       |   |        |
| Line of credit, $427,590 (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 1.23% at              |       |   |        |
| July 31, 2009)                                                 | 427,590    |   | 384,150     |
|                                                           |       |   |        |
|                                                           | 4,533,086  |   | 4,145,062   |
| Less current portion                                           | 965,741    |   | 746,042     |
|                                                           | 3,567,345  |   | 3,399,020   |
| Fair market value of interest rate swap liability              | 248,197    |   | 354,208     |
| Long-term portion                                              | $3,815,542 |   | $3,753,228  |

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Index

| Quarter Ending |       |   |
|----------------|------------|--------|
| July 31,       |       |   |
| 2010           | $965,741   |   |
| 2011           | 538,151    |   |
| 2012           | 484,210    |   |
| 2013           | 376,368    |   |
| 2014           | 376,368    |   |
| Thereafter     | 1,792,248  |   |
|           | $4,533,086 |   |

|                                             | July 31,    |   | January 31, |   |
|--------------------------------------------------|-------------|--------|-------------|--------|
|                                             | 2009        |   | 2009        |   |
| Interest rate swap, net of tax                   | ($156,364   | )      | ($223,151   | )      |
| Foreign currency translation adjustment          | 1,272,716   |   | 680,697     |   |
| Minimum pension liability adjustment, net of tax | (4,781,839  | )      | (4,781,839  | )      |
|                                             | ($3,665,487 | )      | ($4,324,293 | )      |

|                                 | Six Months Ended |   | Three Months Ended |
|--------------------------------------|------------------|--------|--------------------|
|                                 | July 31,         |   | July 31,           |
|                                 | 2009             |   | 2008               |   | 2009 |   | 2008 |
| Interest income                      | $82,594          |   | $256,205           |   | $58,410 |   | $104,699 |
| Other miscellaneous income (expense) | (5,842           | )      | 42,725             |   | 4,377 |   | 18,416 |
|                                 | $76,752          |   | $298,930           |   | $62,787 |   | $123,115 |

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Index

|                               | Six Months Ended |   | Three Months Ended |   |     |
|------------------------------------|------------------|--------|--------------------|--------|----------|
|                               | July 31,         |   | July 31,           |   |     |
|                               | 2009             |   | 2008               |   | 2009     |   | 2008 |   |   |
| Service cost                       | $34,612          |   | $68,374            |   | $17,306  |   | $34,187 |   |   |
| Interest cost                      | 569,898          |   | 543,182            |   | 284,949  |   | 271,591 |   |   |
| Expected return on plan assets     | (374,158         | )      | (661,586           | )      | (187,079 | ) | (330,793 | ) |   |
| Amortization of transition asset   | -                |   | (188               | )      | -        |   | (94 | ) |   |
| Amortization of prior service cost | (422             | )      | 18,092             |   | (211     | ) | 9,046 |   |   |
| Recognized net actuarial loss      | 118,632          |   | 6,684              |   | 59,316   |   | 3,342 |   |   |
| Net periodic benefit (income) cost | $348,562         |   | ($25,442           | )      | $174,281 |   | ($12,721 | ) |   |

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Index

----

Index

|                                                                          | Six Months EndedJuly 31, |   | Three Months EndedJuly 31, |
|-------------------------------------------------------------------------------|--------------------------|--------|----------------------------|
|                                                                          | 2009                     |   | 2008                       |   | 2009 |   | 2008 |
| Net sales                                                                     |                     |   |                       |   |   |   |   |
|      Product Recovery/Pollution Control Technologies | $17,888,042              |   | $23,690,946                |   | $10,318,060 |   | $14,186,154 |
|      Fluid Handling Technologies                     | 12,709,965               |   | 14,856,920                 |   | 5,731,503 |   | 7,868,337 |
|      Mefiag Filtration Technologies                  | 4,478,932                |   | 6,305,172                  |   | 1,991,682 |   | 3,050,017 |
|      Filtration/Purification Technologies            | 5,449,652                |   | 5,949,154                  |   | 2,844,338 |   | 3,041,210 |
|                                                                          | $40,526,591              |   | $50,802,192                |   | $20,885,583 |   | $28,145,718 |
|                                                                          |                     |   |                       |   |   |   |   |
| Income (loss) from operations                                                 |                     |   |                       |   |   |   |   |
|      Product Recovery/Pollution Control Technologies | $1,048,355               |   | $2,591,273                 |   | $903,152 |   | $1,699,022 |
|      Fluid Handling Technologies                     | 2,277,081                |   | 3,236,972                  |   | 971,076 |   | 1,857,018 |
|      Mefiag Filtration Technologies                  | (158,434                 | )      | 337,902                    |   | (143,031 | ) | 178,774 |
|      Filtration/Purification Technologies            | 74,709                   |   | 535,273                    |   | 38,405 |   | 270,377 |
|                                                                          | $3,241,711               |   | $6,701,420                 |   | $1,769,602 |   | $4,005,191 |

|                                            | July 31,     |   | January 31,  |   |   |
|-------------------------------------------------|--------------|--------|--------------|--------|--------|
|                                            | 2009         |   | 2009         |   |   |
| Identifiable assets                             |         |   |         |   |   |
| Product Recovery/Pollution Control Technologies | $34,438,214  |   | $39,623,284  |   |   |
| Fluid Handling Technologies                     | 19,804,884   |   | 22,056,812   |   |   |
| Mefiag Filtration Technologies                  | 11,732,099   |   | 11,410,677   |   |   |
| Filtration/Purification Technologies            | 8,851,353    |   | 9,369,905    |   |   |
|                                            | 74,826,550   |   | 82,460,678   |   |   |
| Corporate                                       | 29,295,525   |   | 22,291,626   |   |   |
|                                            | $104,122,075 |   | $104,752,304 |   |   |

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Index

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

|                      | /s/ Marcum LLP |
|---------------------------|----------------|
|                      | Marcum LLP     |
|                      |           |
|                      |           |
|                      |           |
|                      |           |
| Bala Cynwyd, Pennsylvania |           |
| September 3, 2009         |           |

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Index

|                      | /s/ Margolis & Company P.C. |
|---------------------------|---------------------------------|
|                      | Margolis & Company P.C.     |
|                      |                            |
|                      |                            |
|                      |                            |
|                      |                            |
| Bala Cynwyd, Pennsylvania |                            |
| February 20, 2009         |                            |

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Index

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations:  

|                                |   | Six Months Ended |   | Three Months Ended |
|-------------------------------------|--------|------------------|--------|--------------------|
|                                |   | July 31,         |   | July 31,           |
|                                |   | 2009             |   | 2008               |   | 2009 |   | 2008 |   |
|                                |   |             |   |               |   |   |   |   |   |
| Net sales                           |   | 100.0            | %      | 100.0              | % | 100.0 | % | 100.0 | % |
| Cost of goods sold                  |   | 65.2             | %      | 66.1               | % | 66.0 | % | 65.8 | % |
| Gross profit                        |   | 34.8             | %      | 33.9               | % | 34.0 | % | 34.2 | % |
|                                |   |             |   |               |   |   |   |   |   |
| Selling expenses                    |   | 12.4             | %      | 9.8                | % | 12.1 | % | 9.7 | % |
| General and administrative expenses |   | 14.4             | %      | 10.9               | % | 13.4 | % | 10.3 | % |
| Income from operations              |   | 8.0              | %      | 13.2               | % | 8.5 | % | 14.2 | % |
|                                |   |             |   |               |   |   |   |   |   |
| Interest expense                    |   | (0.3             | %)     | (0.3               | %) | (0.3 | %) | (0.2 | %) |
| Other income, net                   |   | 0.2              | %      | 0.6                | % | 0.3 | % | 0.4 | % |
| Income before taxes                 |   | 7.9              | %      | 13.5               | % | 8.5 | % | 14.4 | % |
|                                |   |             |   |               |   |   |   |   |   |
| Provision for taxes                 |   | 2.6              | %      | 4.4                | % | 2.8 | % | 4.8 | % |
| Net income                          |   | 5.3              | %      | 9.1                | % | 5.7 | % | 9.6 | % |

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| ·    | 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 attributedprimarily to a general weakness in its served markets, followed by improved performance in the fiscal years ended January 31, 2007, 2008 and 2009.  During the fiscal year ended January 31, 2009, 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.  Additionally, for the fiscal year ended January 31, 2009, the actual net sales and operating profit for our Flex-Kleen business unit had exceededthe projections used in our annual impairment model.  Based upon the results for the six-month period ended July 31, 2009, Flex-Kleen’s net sales and operating profit are below that which is required by our impairment model for the fiscal year 2010; however, we anticipate a lower cost of capital (which is a factor in the impairment test), which may offset the effect of reduced net sales and operating profit.  We believe Flex-Kleen’s current performance is a reflection of the downturnin U.S. and international business and economic conditions during this period of time and is not due to any new development specific to Flex-Kleen.  The impairment test that we will conduct in December 2009 will be determinative as to whether it is necessary for us to write down any of Flex-Kleen’s goodwill.  We are hopeful that general business conditions will improve and will lead to an improvement in Flex-Kleen’s performance, but as of the date of the filing of this report,we are not able to state whether or not a write-down of Flex-Kleen’s goodwill will be required; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·    | materially adverse changes in economic conditions (i) in the markets served by us or (ii) 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 insurance coverage; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ·    | 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.  We believe that our internalcontrol over financial reporting as of July 31, 2009 is effective, however 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 not occur; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·    | unexpected results in our product development activities; |
|---------------------|-----------------------------------------------------------|

| ·    | 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 and regulations; |
|---------------------|------------------------------------------------------|

| ·    | 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; |
|---------------------|------------------------------------------------------------|

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Index

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

| ·    | failure in execution of acquisition strategy. |
|--------------------------|-----------------------------------------------|

Item 3.  Qualitative and Quantitative Disclosures About Market Risk

We are exposed to certain market risks, primarily changes in interest rates.  There have been no significant changes in our exposure to market risks since January 31, 2009.  Refer to “Item 7A. Quantitative and Qualitative Disclosure About Market Risks” of the Company’sAnnual Report on Form 10-K for the fiscal year ended January 31, 2009 for additional information. 

Item 4.  Controls and Procedures

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Index

Item 1.   Legal Proceedings

Item 1A.  Risk Factors

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Index

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds

| (a)    | During the second quarter ended July 31, 2009, 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 July 31, 2009:                                     |

| Period          |   | TotalNumber of SharesPurchased |   | AveragePrice PaidPer Share                                           |   | TotalNumber ofSharesPurchasedAs Part ofPubliclyAnnouncedPlans orPrograms |   | MaximumNumber ofSharesThat MayYet bePurchasedUnder thePlan orPrograms |           (1) |
|-----------------|--------|-------------------------------------|--------|----------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------------------------------------------------------------|
|            |   |                                |   |                                                                 |   |                                                                     |   |                                                                  |                                                            |
| May 1-31, 2009  |   | 0                                   |   | $          -       |   | 0                                                                        |   | 300,000                                                               |                                                            |
| June 1-30, 2009 |   | 0                                   |   | -                                                                    |   | 0                                                                        |   | 300,000                                                               |                                                            |
| July 1-31, 2009 |   | 0                                   |   | -                                                                    |   | 0                                                                        |   | 300,000                                                               |                                                            |
| Total           |   | 0                                   |   |  $          - |   | 0                                                                        |   | 300,000                                                               |                                                            |

| (1)   | On November 3, 2008, our Board of Directors authorized a Common Share repurchase program that was publicly announced on November 5, 2008, for up to 300,000 shares.  The program has no fixed expiration date. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 3.   Defaults Upon Senior Securities

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Index

Item 4.   Submission of Matters to a Vote of Security Holders

|         |   |                                                                                  |       | Number of Votes |
|--------------|--------|---------------------------------------------------------------------------------------|------------|-----------------|
|         |   |                                                                                  |       |            |   |   |   | Abstain/ |
|         |   |                                                                                  |       |            |   |   |   | Broker |
| Proposals    |   |                                                                                  |       | For             |   | Against |   |  Non Vote |
| Proposal 1 - |   | Election of Directors                                                                 |       |            |   |   |   |
|         |   | George H. Glatfelter II                                                               | 11,716,623 |            | 606,325 |   | - |
|         |   | Gary J. Morgan                                                                        | 11,394,682 |            | 928,266 |   | - |
| Proposal 2 - |   | Selection of Margolis & Company P.C. as Independent Registered Public Accountants |       | 11,988,572      |   | 296,249 |   | 38,127 |

Item 5.   Other Information

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Index

Item 6.   Exhibits

| (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.* |

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Index

SIGNATURES

|   | 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)                            |
|              |   |                                    |
|              |   |                                    |
|              |   |                                    |
|              |   |                                    |
| September 3, 2009 |   | /s/ Raymond J. De Hont                  |
|              |   | Raymond J. De Hont                      |
|              |   | Chairman, President and Chief Executive |
|              |   | Officer                                 |
|              |   |                                    |
|              |   |                                    |
|              |   |                                    |
|              |   |                                    |
| September 3, 2009 |   | /s/ Gary J. Morgan                      |
|              |   | Gary J. Morgan                          |
|              |   | Senior Vice President of Finance,       |
|              |   | Secretary and Treasurer, Chief          |
|              |   | Financial Officer, Chief Accounting     |
|              |   | Officer and Director                    |
|              |   |                                    |
|              |   |                                    |

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