----

----

| T | ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|-----------------------------------------------------------------------------------------------------------------------------------|

| £ | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

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

|                                                    |   | Name                of each exchange on |
|---------------------------------------------------------|--------|-----------------------------------------|
| Title                of each                class       |   | which                registered         |
| Common                Shares, par value $0.10 per share |   | New                York Stock Exchange  |

| Common                Shares, par value $0.10 per share |   |   |
|---------------------------------------------------------|--------|--------|
| (Title                of Class)                         |   |   |

|                                                                                                                                                                                                                                    | Form                10-K/A |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
|                                                                                                                                                                                                                                    | Part                Number |
| Portions                of Registrant’s Definitive Proxy Statement filed pursuant to Regulation                14A in connection with Registrant’s Annual Meeting of Shareholders to be                held on June 6, 2007 | III                        |

----

----

----

|   | · | Part                I – Item 1 – Business |
|--------|--------|-------------------------------------------------------|

|   | · | Part                II – Item 6 – Selected Financial Data |
|--------|--------|-----------------------------------------------------------------------|

|   | · | Part                II – Item 7 – Management’s Discussion and Analysis of Financial Condition                and Results of Operations |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Part                II – Item 8 – Financial Statements and Supplementary Data |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Part                III – Item 9A – Controls and Procedures |
|--------|--------|-------------------------------------------------------------------------|

|   | · | Part                IV – Item 15 – Exhibits and Financial Schedules |
|--------|--------|---------------------------------------------------------------------------------|

----

FOR

|                    |                    |                                                                                                                                                                | Page   |
|-------------------------|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                    |                    |                                                                                                                                                                |   |
| PART                I   |                    |
|                    | Item                1.  | Business                (Restated)                                                                                                                                  | 1      |
|                    |                    | Executive                Officers of the Registrant                                                                                                                 | 7      |
|                    | Item                1A. | Risk                Factors                                                                                                                                         | 8      |
|                    | Item                1B. | Unresolved                Staff Comments                                                                                                                            | 10     |
|                    | Item                2.  | Properties                                                                                                                                                          | 11     |
|                    | Item                3.  | Legal                Proceedings                                                                                                                                    | 12     |
|                    | Item                4.  | Submission                of Matters to a Vote of Security                Holders                                                                                   | 12     |
|                    |                    |                                                                                                                                                                |   |
| PART                II  |                    |
|                    | Item                5.  | Market                for the Registrant’s Common Equity, Related                Shareholder Matters and Issuer Purchases of Equity                Securities | 13     |
|                    | Item                6.  | Selected                Financial Data (Restated)                                                                                                                   | 15     |
|                    | Item                7.  | Management’s                Discussion and Analysis of Financial Condition                and Results of Operations (Restated)                                | 16     |
|                    |                    | Forward-Looking                Statements; Factors That May Affect Future                Results                                                                    | 24     |
|                    | Item                7A. | Quantitative                and Qualitative Disclosure About Market                Risks                                                                            | 25     |
|                    | Item                8.  | Financial                Statements and Supplementary Data                (Restated)                                                                                | 26     |
|                    | Item                9.  | Changes                in and Disagreements with                Accountants on Accounting and Financial Disclosure                                                  | 58     |
|                    | Item                9A. | Controls                and Procedures (Restated)                                                                                                                   | 59     |
|                    | Item                9B. | Other                Information                                                                                                                                    | 59     |
|                    |                    |                                                                                                                                                                |   |
| PART                III |                    |
|                    | Item                10. | Directors,                Executive Officers and Corporate                Governance                                                                                | 60     |
|                    | Item                11. | Executive                Compensation                                                                                                                               | 60     |
|                    | Item                12. | Security                Ownership of Certain Beneficial Owners and                Management and Related Shareholder Matters                                        | 60     |
|                    | Item                13. | Certain                Relationships and Related Transactions, and                Director Independence                                                             | 60     |
|                    | Item                14. | Principal                Accountant Fees and Services                                                                                                               | 61     |
|                    |                    |                                                                                                                                                                |   |
| PART                IV  |                    |
|                    | Item                15. | Exhibits                and Financial Statement Schedules                (Restated)                                                                                 | 61     |
|                    |                    |                                                                                                                                                                |   |
| SIGNATURES              | 65                      |

----

Index

|  FACTORS                THAT MAY AFFECT FUTURE RESULTS Met-Pro’s                prospects are subject to certain uncertainties and risks.  This                Annual Report on Form 10-K/A also contains certain forward-looking                statements within the meaning of the Federal securities                laws.  Met-Pro’s future results may differ materially from its                current results and actual results could differ materially from those                projected in the forward-looking statements, perhaps for reasons                described                in “Risk Factors”, and perhaps for other unanticipated reasons. Readers should                pay particular                attention to the considerations described in the section of this                report                entitled “Management’s Discussion and Analysis of Financial Condition and                Results of Operations – Forward-Looking Statements; Factors That May                Affect  Future Results.” Readers should also carefully                review the risk factors identified in this Annual Report and in other                documents Met-Pro files from time to time with the Securities and                Exchange                Commission.  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item

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Index

----

Index

----

Index

|                         |   | Percentage                of Net Sales       |   |
|------------------------------|--------|----------------------------------------------|--------|
|                         |   | Fiscal                Year Ended January 31, |   |
|                         |   | 2007                                         |   |   | 2006 |   |   | 2005 |   |
|                         |   | (Restated)                                   |   |   |   |   |   |   |   |
| United                States |   |                                         | 75.3   | % |   |   | 75.3 | % |   |   | 78.6 | % |
| Foreign                      |   |                                         | 24.7   | % |   |   | 24.7 | % |   |   | 21.4 | % |
| Net                Sales     |   |                                         | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |

----

Index

----

Index

----

Index

Exec

----

Index

Item

----

Index

|   | — | export                and import restrictions, tax consequences and other trade barriers, |
|--------|---------|-------------------------------------------------------------------------------------------|

|   | — | currency                fluctuations, |
|--------|---------|---------------------------------------|

|   | — | greater                difficulty in accounts receivable collections, |
|--------|---------|-----------------------------------------------------------------------|

|   | — | economic                and political instability, |
|--------|---------|----------------------------------------------------|

|   | — | foreign                exchange controls that prohibit payment in U.S. dollars, and |
|--------|---------|-------------------------------------------------------------------------------------|

|   | — | increased                complexity and costs of managing and staffing international operations. |
|--------|---------|--------------------------------------------------------------------------------------------------|

----

Index

Item

----

Index

Item

| Name                                                                                                                  |   | Structure                                                                 |   | Property/Location                                          |   | Status    |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|-----------|
| Executive                Offices, International Division, Systems Division and Strobic Air                Corporation |   | 73,000                square foot, cement building, with finestone facing |   | 17                acres in Harleysville, Pennsylvania      |   | Owned     |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
| Keystone                Filter Division                                                                               |   | 31,000                square foot, cement block building                  |   | 2.3                acres in Hatfield, Pennsylvania         |   | Owned     |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
| Sethco                and Fybroc Divisions                                                                            |   | 93,500                square foot, cement building with brick facing      |   | 8                acres in Telford, Pennsylvania            |   | Owned(1)  |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
| Dean                Pump Division                                                                                     |   | 66,000                square foot, metal building                         |   | 17.1                acres in Indianapolis, Indiana         |   | Owned     |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
| Duall                Division and Mefiag Division                                                                     |   | 63,000                square foot, metal and masonry building             |   | 7                acres in Owosso, Michigan                 |   | Owned     |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
| Flex-Kleen                Division                                                                                    |   | 13,760                square foot, brick building                         |   | Itasca,                Illinois                            |   | Leased(2) |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
|                                                                                                                  |   | 37,320                square foot, metal building                         |   | Sharpsburg,                North Carolina                  |   | Leased(3) |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
| Flex-Kleen                Canada Inc.                                                                                 |   | 3,187                square foot, masonry building                        |   | Barrie,                Ontario, Canada                     |   | Leased(4) |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
| Pristine                Water Solutions Inc.                                                                          |   | 22,000                square foot, cement block building                  |   | 2.55                acres in Waukegan, Illinois            |   | Owned     |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
|                                                                                                                  |   | 600                square foot warehouse facility                         |   | Minot,                North Dakota                         |   | Leased(5) |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
| Mefiag                B.V.                                                                                            |   | 34,000                square foot, metal and masonry building             |   | 1.1                acres in Heerenveen, The Netherlands    |   | Owned     |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
|                                                                                                                  |   | Vacant                land                                                |   | 3                acres in Heerenveen, The Netherlands      |   | Owned     |
|                                                                                                                  |   |                                                                      |   |                                                       |   |      |
| Mefiag                (Guangzhou) Filter Systems Ltd.                                                                 |   | 11,000                square foot cement building                         |   | Guangzhou,                People’s Republic of China |   | Leased(6) |

| (1) | We                completed a 47,000 square foot addition to this facility; the reference                to                93,500 square feet includes this addition. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Flex-Kleen                Division’s lease for the operation in Itasca, Illinois expires on December                31, 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Flex-Kleen                Division’s lease for the warehouse in Sharpsburg, North Carolina is on a                month to month basis. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Flex-Kleen                Canada Inc.’s lease for the sales and warehouse facility in Barrie,                Ontario, Canada expires on February 29, 2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Pristine                Water Solutions Inc.’s lease for the warehouse in Minot, North Dakota is                on a month to month basis. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Mefiag                (Guangzhou) Filter Systems Ltd.’s lease for the operation in Guangzhou,                People’s Republic of China expires on July 31, 2010. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

Item

Beginning      in 2002, the Company and/or one of its divisions began to      be named as one of many defendants in asbestos-related lawsuits filed      predominantly in Mississippi on a mass basis by large numbers of plaintiffs      against a large number of industrial companies including in particular those      in      the pump and fluid handling industries. More recently, the Company and/or this      division have been named as one of many pump and fluid handling defendants      in      asbestos-related lawsuits filed in New York and Maryland by individual      plaintiffs, sometimes husband and wife. To a lesser extent, the Company and/or      this division have also been named together with many other pump and fluid      handling defendants in these type of cases in other states as well. The      complaints filed against the Company and/or this division have been vague,      general and speculative, alleging that the Company, and/or the division, along      with the numerous other defendants, sold unidentified asbestos-containing      products and engaged in other related actions which caused injuries and loss      to      the plaintiffs. The Company believes that it and/or the division have      meritorious defenses to the cases which have been filed and that none of its      and/or the division's products were a cause of any injury or loss to any of      the      plaintiffs. The Company’s insurers have hired attorneys who together with the      Company are vigorously defending these cases. The Company and/or the division      have been dismissed from or settled a number of these cases. The sum total      of      payments made through January 31, 2007 to settle these cases is $305,000,      all of which has been paid by the Company’s insurers including legal expenses,      except for corporate counsel expenses, with an average cost per settled claim,      excluding legal fees, of approximately $28,000. As of January 31, 2007, there      were a total of 37 cases pending against the Company, as compared to 51 cases      that were pending as of January 31, 2006. During the fiscal year ended January      31, 2007, 20 new cases were filed against the Company, and the Company was      dismissed from or settled 34 cases. Most of the pending cases have not advanced      beyond the early stages of discovery, although several cases are on schedules      leading to trial. The Company presently believes that none of the pending cases      will have a material adverse impact upon the Company’s results of operations,      liquidity or financial condition.

atter

----

Index

mm

|                                         |   | Quarter                ended |   |
|----------------------------------------------|--------|------------------------------|--------|
| Year                ended January 31, 2007   |   | April                        |   |   | July |   |   | October |   |   | January |   |
|                                         |   |                         |   |   |   |   |   |   |   |   |   |   |
| Price                range of common shares: |   |                         |   |   |   |   |   |   |   |   |   |   |
| High                                         |   | $                            | 15.38  |   |   | $ | 16.25 |   |   | $ | 13.70 |   |   | $ | 15.38 |   |
| Low                                          |   |                         | 12.67  |   |   |   | 12.10 |   |   |   | 12.29 |   |   |   | 13.23 |   |
| Cash                dividend paid            |   |                         | .0625  |   |   |   | .0625 |   |   |   | .0625 |   |   |   | .0675 |   |

| Year                ended January 31, 2006   |   | April  |   |   | July   |   |   | October |   |   | January |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|
|                                         |   |   |   |   |   |   |   |    |   |   |    |   |
| Price                range of common shares: |   |   |   |   |   |   |   |    |   |   |    |   |
| High                                         |   | $      | 10.49  |   |   | $      | 11.48  |    |   | $      | 11.95   |   |   | $ | 13.10 |   |
| Low                                          |   |   | 9.75   |   |   |   | 9.76   |    |   |   | 10.59   |   |   |   | 11.60 |   |
| Cash                dividend paid            |   |   | .0581  |   |   |   | .0581  |    |   |   | .0581   |   |   |   | .0625 |   |

|                                                                      |   |                                |    |   |                                |   |   | Number                of Securities     |   |
|---------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------|--------|--------|-----------------------------------------|--------|
|                                                                      |   |                                |    |   |                                |   |   | Remaining                Available      |   |
|                                                                      |   | Number                of Securities |    |   |                                |   |   | For                Future Issuance      |   |
|                                                                      |   | to                be Issued Upon    |    |   | Weighted-Average                    |   |   | Under                Equity             |   |
|                                                                      |   | Exercise                of          |    |   | Exercise                Price of    |   |   | Compensation                Plans       |   |
|                                                                      |   | Outstanding                Options, |    |   | Outstanding                Options, |   |   | (Excluding                Securities    |   |
| Plan                Category                                              |   | Warrants                and Rights  |    |   | Warrants                and Rights  |   |   | Reflected                in Column (A)) |   |
|                                                                      |   | (A)                                 |    |   | (B)                                 |   |   | (C)                                     |   |
| Equity                compensation plans approved by security holders     |   |                                | 956,941 |   |                                | $      | 10.69  |                                    |   |   | 862,070 |   |
| Equity                compensation plans not approved by security holders |   |                                | -       |   |                                |   | -      |                                    |   |   | - |   |

----

Index

|                                |   | Issuer                Purchases of           |   |
|-------------------------------------|--------|----------------------------------------------|--------|
|                                |   | Equity                Securities             |   |
|                                |   |                                         |   |
| Period                              |   | TotalNumber                ofSharesPurchased |   |   | AveragePrice                PaidPer                Share |   |   | TotalNumber                ofSharesPurchasedAs                Part ofPubliclyAnnouncedPlans                orPrograms |   |   | MaximumNumber                ofSharesThat                MayYet                BePurchasedUnder                thePlan                orPrograms |  (1) |
| February                1-28, 2006  |   |                                         | 0      |   |   | $ | - |   |   |   | 0 |   |   |   | 270,918 |   |
| March                1-31, 2006     |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| April                1-30, 2006     |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| May                1-31, 2006       |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| June                1-30, 2006      |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| July                1-31, 2006      |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| August                1-31, 2006    |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| September                1-30, 2006 |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| October                1-31, 2006   |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| November                1-30, 2006  |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| December                1-31, 2006  |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| January                1-31, 2007   |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |
| Total                               |   |                                         | 0      |   |   |   | - |   |   |   | 0 |   |   |   | 270,918 |   |

|   | (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 533,333 (adjusted for stock splits) shares. The program has                no fixed                expiration date. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

nan

|                                                           |   |       |       |   | Years                ended January 31, |   |       |   |   |
|----------------------------------------------------------------|--------|------------|------------|--------|----------------------------------------|--------|------------|--------|--------|
|                                                           |   | 2007       |       |   | 2006                                   |   |       | 2005   |   |   | 2004 |   |   | 2003 |   |
|                                                           |   | (Restated) |       |   |                                   |   |       |   |   |   |   |   |   |   |   |
| Selected                Operating Statement Data               |   |       |       |   |                                   |   |       |   |   |   |   |   |   |   |   |
| Net                sales                                       |   | $          | 90,592,484 |   |                                   | $      | 85,116,100 |   |   | $ | 72,116,289 |   |   | $ | 75,058,929 |   |   | $ | 69,619,382 |   |
| Income                from operations                          |   |       | 9,757,075  |   |                                   |   | 9,662,604  |   |   |   | 7,384,115 |   |   |   | 9,850,090 |   |   |   | 9,160,234 |   |
| Net                income                                      |   |       | 6,926,804  |   |                                   |   | 7,313,284  |   |   |   | 4,814,679 |   |   |   | 6,346,579 |   |   |   | 5,888,379 |   |
| Earnings                per share, basic (a)                   |   |       | .62        |   |                                   |   | .65        |   |   |   | .43 |   |   |   | .57 |   |   |   | .54 |   |
| Earnings                per share, diluted (a)                 |   |       | .61        |   |                                   |   | .65        |   |   |   | .43 |   |   |   | .57 |   |   |   | .53 |   |
|                                                           |   |       |       |   |                                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected                Balance Sheet Data                     |   |       |       |   |                                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                assets (b)                              |   | $          | 58,803,353 |   |                                   | $      | 53,413,413 |   |   | $ | 50,034,033 |   |   | $ | 47,569,003 |   |   | $ | 40,000,524 |   |
| Current                liabilities (b)                         |   |       | 14,364,393 |   |                                   |   | 14,361,953 |   |   |   | 12,916,500 |   |   |   | 11,429,817 |   |   |   | 8,047,935 |   |
| Working                capital (b)                             |   |       | 44,438,960 |   |                                   |   | 39,051,460 |   |   |   | 37,117,533 |   |   |   | 36,139,186 |   |   |   | 31,952,589 |   |
| Current                ratio (b)                               |   |       | 4.1        |   |                                   |   | 3.7        |   |   |   | 3.9 |   |   |   | 4.2 |   |   |   | 5.0 |   |
| Total                assets (b)                                |   |       | 96,741,657 |   |                                   |   | 89,071,391 |   |   |   | 82,687,604 |   |   |   | 80,531,131 |   |   |   | 73,123,450 |   |
| Long-term                obligations                           |   |       | 5,417,990  |   |                                   |   | 2,723,586  |   |   |   | 4,039,068 |   |   |   | 5,447,869 |   |   |   | 7,111,995 |   |
| Total                shareholders’ equity                |   |       | 72,313,132 |   |                                   |   | 67,538,238 |   |   |   | 63,165,191 |   |   |   | 60,270,734 |   |   |   | 56,045,885 |   |
| Total                capitalization                            |   |       | 77,731,122 |   |                                   |   | 70,261,824 |   |   |   | 67,204,259 |   |   |   | 65,718,603 |   |   |   | 63,157,880 |   |
| Return                on average total assets, % (b)           |   |       | 7.5        |   |                                   |   | 8.5        |   |   |   | 5.9 |   |   |   | 8.2 |   |   |   | 8.3 |   |
| Return                on average shareholders’ equity, % |   |       | 9.9        |   |                                   |   | 11.2       |   |   |   | 7.8 |   |   |   | 10.9 |   |   |   | 11.1 |   |
|                                                           |   |       |       |   |                                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Financial Data                            |   |       |       |   |                                   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                cash flows from operating activities        |   | $          | 3,900,152  |   |                                   | $      | 4,441,414  |   |   | $ | 8,545,521 |   |   | $ | 8,232,851 |   |   | $ | 5,831,186 |   |
| Capital                expenditures                            |   |       | 4,398,910  |   |                                   |   | 4,151,253  |   |   |   | 1,193,767 |   |   |   | 952,812 |   |   |   | 752,125 |   |
| Shareholders’                equity per share (a)        |   |       | 6.45       |   |                                   |   | 6.03       |   |   |   | 5.66 |   |   |   | 5.43 |   |   |   | 5.07 |   |
| Cash                dividends paid per share (a)               |   |       | .255       |   |                                   |   | .237       |   |   |   | .221 |   |   |   | .206 |   |   |   | .194 |   |
| Average                common shares, basic (a)                |   |       | 11,207,381 |   |                                   |   | 11,188,657 |   |   |   | 11,145,843 |   |   |   | 11,063,557 |   |   |   | 10,985,988 |   |
| Average                common shares, diluted (a)              |   |       | 11,403,759 |   |                                   |   | 11,333,612 |   |   |   | 11,284,007 |   |   |   | 11,197,675 |   |   |   | 11,060,437 |   |
| Common                shares outstanding                (a)    |   |       | 11,215,244 |   |                                   |   | 11,197,110 |   |   |   | 11,157,389 |   |   |   | 11,097,703 |   |   |   | 11,051,323 |   |

| (a) | All                references to per share amounts, average common shares and shares                outstanding have been restated to reflect the effect of the four-for-three                stock split effective November 15, 2005. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Company reclassified the non-current portion of pension liabilities                from                current liabilities to other non-current liabilities and the deferred                income taxes related to these pension liabilities in accordance FASB                No.                158, “Employers’ Accounting for Defined Benefit Pension and Other                Postretirement Plans” for the fiscal years ended January 31, 2006, 2005,                2004 and 2003. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

scus

|                                                 |   | Year                EndedJanuary                31, 2007 |       |
|------------------------------------------------------|--------|----------------------------------------------------------|------------|
|                                                 |   | As                Restated                               |       |   | As                Previously Reported |   |
| Consolidated                Statement of Operations: |   |                                                     |       |   |   |   |
| Net                sales                             |   | $                                                        | 90,592,484 |   |   | $ | 91,411,114 |   |
| Net                income                            |   |                                                     | 6,926,804  |   |   |   | 7,190,829 |   |
| Earnings                per share, basic             |   | $                                                        | .62        |   |   | $ | .64 |   |
| Earnings                per share, diluted           |   | $                                                        | .61        |   |   | $ | .63 |   |

|                                       |   | As                ofJanuary                31, 2007 |       |
|--------------------------------------------|--------|-----------------------------------------------------|------------|
|                                       |   | As                Restated                          |       |   | As                Previously Reported |   |
| Consolidated                Balance Sheet: |   |                                                |       |   |   |   |
| Accounts                receivable         |   | $                                                   | 19,988,097 |   |   | $ | 20,837,589 |   |
| Inventory                                  |   |                                                | 19,720,842 |   |   |   | 19,296,279 |   |
| Accounts                payable            |   |                                                | 6,419,951  |   |   |   | 6,450,813 |   |
| Accrued                expenses            |   |                                                | 4,005,300  |   |   |   | 4,135,342 |   |
| Retained                earnings           |   |                                                | 74,657,888 |   |   |   | 74,921,913 |   |

----

Index

|                                                       |   | Years                ended January 31, |   |
|------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                       |   | 2007                                   |   |   | 2006 |   |   | 2005 |   |
|                                                       |   | (Restated)                             |   |   |   |   |   |   |   |
| Net                sales                                   |   |                                   | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost                of goods sold                          |   |                                   | 69.0   | % |   |   | 68.7 | % |   |   | 68.6 | % |
|                                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Gross                profit                                |   |                                   | 31.0   | % |   |   | 31.3 | % |   |   | 31.4 | % |
|                                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative expense |   |                                   | 20.0   | % |   |   | 20.0 | % |   |   | 21.0 | % |
| Loss                on the curtailment of pension benefits |   |                                   | .2     | % |   |   | - |   |   |   | - |   |
| Patent                litigation                           |   |                                   | -      |   |   |   | - |   |   |   | .2 | % |
|                                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Income                from operations                      |   |                                   | 10.8   | % |   |   | 11.3 | % |   |   | 10.2 | % |
|                                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                            |   |                                   | (.4    | %) |   |   | (.3 | %) |   |   | (.5 | %) |
| Other                income, net                           |   |                                   | 1.0    | % |   |   | .8 | % |   |   | .4 | % |
|                                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Income                before taxes                         |   |                                   | 11.4   | % |   |   | 11.8 | % |   |   | 10.1 | % |
|                                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Provision                for taxes                         |   |                                   | 3.8    | % |   |   | 3.2 | % |   |   | 3.4 | % |
|                                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                  |   |                                   | 7.6    | % |   |   | 8.6 | % |   |   | 6.7 | % |

----

Index

----

Index

----

Index

----

Index

----

Index

| Payments                Due ByPeriod |   | Long-TermDebt |      |   | PurchaseObligations |   |      | OperatingLeases |   |   | InterestExpense |   |   | PensionContributions |      |   | TotalContractualCashObligations |   |
|--------------------------------------|--------|---------------|-----------|--------|---------------------|--------|-----------|-----------------|--------|--------|-----------------|--------|--------|----------------------|-----------|--------|---------------------------------|--------|
| Less                than 1 Year      |   | $             | 1,955,202 |   |                | $      | 9,294,163 |            |   | $      | 171,961         |   |   | $                    | 265,331   |   |                            | $      | 99,300 |   |   | $ | 11,785,957 |   |
| 1–                3 Years      |   |          | 1,928,364 |   |                |   | -         |            |   |   | 80,119          |   |   |                 | 425,329   |   |                            |   | 197,322 |   |   |   | 2,631,134 |   |
| 3–                5 Years      |   |          | 728,364   |   |                |   | -         |            |   |   | 19,691          |   |   |                 | 311,409   |   |                            |   | 187,930 |   |   |   | 1,247,394 |   |
| More                than 5 Years     |   |          | 2,684,397 |   |                |   | -         |            |   |   | -               |   |   |                 | 611,602   |   |                            |   | 392,476 |   |   |   | 3,688,475 |   |
| Total                                |   | $             | 7,296,327 |   |                | $      | 9,294,163 |            |   | $      | 271,771         |   |   | $                    | 1,613,671 |   |                            | $      | 877,028 |   |   | $ | 19,352,960 |   |

----

Index

----

Index

oki

|   | — | 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, 2007, 2006 and 2005. During the fiscal year ended January                31,                2007, 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, 2007, the actual                net                sales and operating profit for our Flex-Kleen business unit have                exceeded                the projections used in our annual impairment model, and in addition                the                backlog as of January 31, 2007 for the Flex-Kleen business unit totaled                $4.9 million or an increase of 37.1% over the same period last year                (Restated); |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | 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 insurance coverage; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index

|   | — | 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; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | 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; |
|--------|---------|---------------------------------------------------------------------------|

|   | — | losses                related to international sales; and |
|--------|---------|-----------------------------------------------------------|

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

Quantitative      and Qualitative Disclosure About Market      Risks:

----

Index

teme

|                                              | Page                                                                                  |
|---------------------------------------------------|---------------------------------------------------------------------------------------|
| Consolidated                Financial Statements: |                                                                                  |
|                                              | Management’s                Report on Internal Control Over Financial Reporting | 27 |
|                                              | Reports                of Independent Registered Public Accounting Firm               | 28 |
|                                              | Consolidated                Statement of Operations (Restated)                        | 30 |
|                                              | Consolidated                Balance Sheet (Restated)                                  | 31 |
|                                              | Consolidated                Statement of Cash Flows (Restated)                        | 32 |
|                                              | Consolidated                Statement of Shareholders’ Equity (Restated)        | 33 |
|                                              | Consolidated                Business Segment Data (Restated)                          | 34 |
|                                              | Notes                to Consolidated Financial Statements                             | 35 |
|                                              |                                                                                  |   |
| Supplementary                Data:                |                                                                                  |
|                                              | Quarterly                Financial Data (Restated)                                    | 58 |

----

Index

MANAGEMENT’S      REPORT ON INTERNAL CONTROL OVER FINANCIAL      REPORTING

|   |                                                 |
|--------|------------------------------------------------------|
|   | /s/                Raymond J. De Hont                |
|   | Raymond                J. De Hont                    |
|   | President                and Chief Executive Officer |

|   | /s/                Gary J. Morgan      |
|--------|----------------------------------------|
|   | Gary                J. Morgan          |
|   | Chief                Financial Officer |

----

Index

|   | /s/                Margolis & Company P.C. |   |
|--------|------------------------------------------------|--------|

----

Index

|   | /s/                Margolis & Company P.C. |   |
|--------|------------------------------------------------|--------|

----

Index

|                                                                             |   | Years                ended January 31, |       |
|----------------------------------------------------------------------------------|--------|----------------------------------------|------------|
|                                                                             |   | 2007                                   |       |   | 2006 |   |   | 2005 |   |
|                                                                             |   | (Restated)                             |       |   |   |   |   |   |   |
| Net                sales                                                         |   | $                                      | 90,592,484 |   |   | $ | 85,116,100 |   |   | $ | 72,116,289 |   |
| Cost                of goods sold                                                |   |                                   | 62,477,267 |   |   |   | 58,441,441 |   |   |   | 49,441,456 |   |
| Gross                profit                                                      |   |                                   | 28,115,217 |   |   |   | 26,674,659 |   |   |   | 22,674,833 |   |
|                                                                             |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Operating                expenses                                                |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Selling                                                                          |   |                                   | 8,258,379  |   |   |   | 7,864,833 |   |   |   | 7,537,508 |   |
| General                and administrative                                        |   |                                   | 9,865,583  |   |   |   | 9,147,222 |   |   |   | 7,617,918 |   |
| Loss                on the curtailment of pension benefits                       |   |                                   | 234,180    |   |   |   | - |   |   |   | - |   |
| Patent                litigation                                                 |   |                                   | -          |   |   |   | - |   |   |   | 135,292 |   |
|                                                                             |   |                                   | 18,358,142 |   |   |   | 17,012,055 |   |   |   | 15,290,718 |   |
| Income                from operations                                            |   |                                   | 9,757,075  |   |   |   | 9,662,604 |   |   |   | 7,384,115 |   |
|                                                                             |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                  |   |                                   | (351,152   | ) |   |   | (269,488 | ) |   |   | (371,345 | ) |
| Other                income, net                                                 |   |                                   | 932,590    |   |   |   | 629,035 |   |   |   | 282,200 |   |
| Income                before taxes                                               |   |                                   | 10,338,513 |   |   |   | 10,022,151 |   |   |   | 7,294,970 |   |
|                                                                             |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Provision                for taxes                                               |   |                                   | 3,411,709  |   |   |   | 2,708,867 |   |   |   | 2,480,291 |   |
| Net                income                                                        |   | $                                      | 6,926,804  |   |   | $ | 7,313,284 |   |   | $ | 4,814,679 |   |
|                                                                             |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Earnings                per share                                                |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Basic                (adjusted for stock split)                                  |   | $                                      | .62        |   |   | $ | .65 |   |   | $ | .43 |   |
| Diluted                (adjusted for stock                split)                 |   | $                                      | .61        |   |   | $ | .65 |   |   | $ | .43 |   |
|                                                                             |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Average                number of common and common equivalent shares outstanding |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Basic                (adjusted for stock split)                                  |   |                                   | 11,207,381 |   |   |   | 11,188,657 |   |   |   | 11,145,843 |   |
| Diluted                (adjusted for stock                split)                 |   |                                   | 11,403,759 |   |   |   | 11,333,612 |   |   |   | 11,284,007 |   |

----

Index

|                                                                                                                                                                                                                                                                   |   | January                31, |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|-------------|
| ASSETS                                                                                                                                                                                                                                                                 |   | 2007                       |        |   | 2006 |   |
| Current                assets                                                                                                                                                                                                                                          |   | (Restated)                 |        |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                               |   | $                          | 17,322,194  |   |   | $ | 17,683,305 |   |
| Marketable                securities                                                                                                                                                                                                                                   |   |                       | 24,090      |   |   |   | - |   |
| Accounts                receivable, net of allowance for doubtful accounts of approximately                $133,000 and $247,000, respectively                                                                                                                         |   |                       | 19,988,097  |   |   |   | 17,909,727 |   |
| Inventories                                                                                                                                                                                                                                                            |   |                       | 19,720,842  |   |   |   | 16,438,481 |   |
| Prepaid                expenses, deposits and other current assets                                                                                                                                                                                                     |   |                       | 1,748,130   |   |   |   | 1,381,900 |   |
| Total                current assets                                                                                                                                                                                                                                    |   |                       | 58,803,353  |   |   |   | 53,413,413 |   |
|                                                                                                                                                                                                                                                                   |   |                       |        |   |   |   |   |   |
| Property,                plant and equipment, net                                                                                                                                                                                                                      |   |                       | 16,832,988  |   |   |   | 13,838,221 |   |
| Costs                in excess of net assets of businesses acquired, net                                                                                                                                                                                               |   |                       | 20,798,913  |   |   |   | 20,798,913 |   |
| Other                assets                                                                                                                                                                                                                                            |   |                       | 306,403     |   |   |   | 1,020,844 |   |
| Total                assets                                                                                                                                                                                                                                            |   | $                          | 96,741,657  |   |   | $ | 89,071,391 |   |
|                                                                                                                                                                                                                                                                   |   |                       |        |   |   |   |   |   |
| LIABILITIES                AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                              |   |                       |        |   |   |   |   |   |
| Current                liabilities                                                                                                                                                                                                                                     |   |                       |        |   |   |   |   |   |
| Current                portion of long-term debt                                                                                                                                                                                                                       |   | $                          | 1,955,202   |   |   | $ | 1,689,413 |   |
| Accounts                payable                                                                                                                                                                                                                                        |   |                       | 6,419,951   |   |   |   | 5,900,281 |   |
| Accrued                salaries, wages and expenses                                                                                                                                                                                                                    |   |                       | 4,005,300   |   |   |   | 4,143,300 |   |
| Dividend                payable                                                                                                                                                                                                                                        |   |                       | 757,029     |   |   |   | 699,819 |   |
| Customers’                advances                                                                                                                                                                                                                               |   |                       | 981,680     |   |   |   | 1,703,092 |   |
| Deferred                income taxes                                                                                                                                                                                                                                   |   |                       | 245,231     |   |   |   | 226,048 |   |
| Total                current liabilities                                                                                                                                                                                                                               |   |                       | 14,364,393  |   |   |   | 14,361,953 |   |
|                                                                                                                                                                                                                                                                   |   |                       |        |   |   |   |   |   |
| Long-term                debt                                                                                                                                                                                                                                          |   |                       | 5,417,990   |   |   |   | 2,723,586 |   |
| Other                non-current liabilities                                                                                                                                                                                                                           |   |                       | 3,276,551   |   |   |   | 3,050,053 |   |
| Deferred                income taxes                                                                                                                                                                                                                                   |   |                       | 1,369,591   |   |   |   | 1,397,561 |   |
| Total                liabilities                                                                                                                                                                                                                                       |   |                       | 24,428,525  |   |   |   | 21,533,153 |   |
| Commitments                                                                                                                                                                                                                                                            |   |                       |        |   |   |   |   |   |
| Shareholders’                equity                                                                                                                                                                                                                              |   |                       |        |   |   |   |   |   |
| Common                shares, $.10 par value; 18,000,000 shares authorized, 12,846,608                shares                issued, of which 1,631,364 and 1,649,498 shares were reacquired and                held                in treasury at the respective dates |   |                       | 1,284,661   |   |   |   | 1,284,661 |   |
| Additional                paid-in capital                                                                                                                                                                                                                              |   |                       | 7,910,708   |   |   |   | 7,564,180 |   |
| Retained                earnings                                                                                                                                                                                                                                       |   |                       | 74,657,888  |   |   |   | 70,645,717 |   |
| Accumulated                other comprehensive (loss)                                                                                                                                                                                                                  |   |                       | (33,471     | ) |   |   | (321,821 | ) |
| Treasury                shares, at cost                                                                                                                                                                                                                                |   |                       | (11,506,654 | ) |   |   | (11,634,499 | ) |
| Total                shareholders’ equity                                                                                                                                                                                                                        |   |                       | 72,313,132  |   |   |   | 67,538,238 |   |
| Total                liabilities and shareholders’ equity                                                                                                                                                                                                        |   | $                          | 96,741,657  |   |   | $ | 89,071,391 |   |

----

Index

|                                                                                                            |   | Years                ended January 31, |       |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|------------|
|                                                                                                            |   | 2007                                   |       |   | 2006 |   |   | 2005 |   |
|                                                                                                            |   | (Restated)                             |       |   |   |   |   |   |   |
| INCREASE                (DECREASE) IN CASH AND CASH EQUIVALENTS                                                 |   |
|                                                                                                            |   |
| Cash                flows from operating activities                                                             |   |                                   |       |   |   |   |   |   |   |
| Net                income                                                                                       |   | $                                      | 6,926,804  |   |   | $ | 7,313,284 |   |   | $ | 4,814,679 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                                    |   |                                   | 1,602,138  |   |   |   | 1,486,340 |   |   |   | 1,491,894 |   |
| Deferred                income taxes                                                                            |   |                                   | 26,203     |   |   |   | 610,593 |   |   |   | 511,225 |   |
| (Gain)                loss on sales of property and equipment, net                                              |   |                                   | 13,310     |   |   |   | 13,131 |   |   |   | (6,358 | ) |
| Stock-based                compensation                                                                         |   |                                   | 327,200    |   |   |   | - |   |   |   | - |   |
| Allowance                for doubtful accounts                                                                  |   |                                   | (114,238   | ) |   |   | 34,002 |   |   |   | 4,823 |   |
| (Increase)                decrease in operating assets:                                                         |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Accounts                receivable                                                                              |   |                                   | (1,831,614 | ) |   |   | (4,428,817 | ) |   |   | 3,080,432 |   |
| Inventories                                                                                                     |   |                                   | (3,161,103 | ) |   |   | (2,657,517 | ) |   |   | (1,008,533 | ) |
| Prepaid                expenses and deposits                                                                    |   |                                   | 2,872      |   |   |   | (141,097 | ) |   |   | (31,363 | ) |
| Other                assets                                                                                     |   |                                   | 332,466    |   |   |   | (484,162 | ) |   |   | 48,833 |   |
| Increase                (decrease) in operating liabilities:                                                    |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Accounts                payable and accrued expenses                                                            |   |                                   | 255,908    |   |   |   | 228,250 |   |   |   | 683,543 |   |
| Customers’                advances                                                                        |   |                                   | (721,878   | ) |   |   | 409,760 |   |   |   | 813,818 |   |
| Other                non-current liabilities                                                                    |   |                                   | 242,084    |   |   |   | 2,057,647 |   |   |   | (1,857,472 | ) |
| Net                cash provided by operating activities                                                        |   |                                   | 3,900,152  |   |   |   | 4,441,414 |   |   |   | 8,545,521 |   |
|                                                                                                            |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Cash                flows from investing activities                                                             |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Proceeds                from sale of property and equipment                                                     |   |                                   | 14,310     |   |   |   | 31,565 |   |   |   | 18,965 |   |
| Acquisitions                of property and equipment                                                           |   |                                   | (4,398,910 | ) |   |   | (4,151,253 | ) |   |   | (1,193,767 | ) |
| Securities                available for sale                                                                    |   |                                   | (21,820    | ) |   |   | - |   |   |   | - |   |
| Net                cash (used in) investing activities                                                          |   |                                   | (4,406,420 | ) |   |   | (4,119,688 | ) |   |   | (1,174,802 | ) |
|                                                                                                            |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Cash                flows from financing activities                                                             |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Proceeds                from new borrowings                                                                     |   |                                   | 4,312,293  |   |   |   | 793,947 |   |   |   | - |   |
| Reduction                of debt                                                                                |   |                                   | (1,492,699 | ) |   |   | (1,800,910 | ) |   |   | (1,233,866 | ) |
| Exercise                of stock options                                                                        |   |                                   | 147,174    |   |   |   | 324,281 |   |   |   | 698,685 |   |
| Payment                of dividends                                                                             |   |                                   | (2,857,423 | ) |   |   | (2,648,576 | ) |   |   | (2,464,033 | ) |
| Purchase                of treasury shares                                                                      |   |                                   | -          |   |   |   | (140,135 | ) |   |   | (538,499 | ) |
| Payment                of cash in lieu of fractional shares                                                     |   |                                   | -          |   |   |   | (1,914 | ) |   |   | - |   |
| Net                cash provided by (used in) financing activities                                              |   |                                   | 109,345    |   |   |   | (3,473,307 | ) |   |   | (3,537,713 | ) |
| Effect                of exchange rate changes on cash                                                          |   |                                   | 35,812     |   |   |   | (54,590 | ) |   |   | 60,217 |   |
| Net                increase (decrease) in cash and cash equivalents                                             |   |                                   | (361,111   | ) |   |   | (3,206,171 | ) |   |   | 3,893,223 |   |
|                                                                                                            |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Cash                and cash equivalents at beginning of year                                                   |   |                                   | 17,683,305 |   |   |   | 20,889,476 |   |   |   | 16,996,253 |   |
| Cash                and cash equivalents at end of year                                                         |   | $                                      | 17,322,194 |   |   | $ | 17,683,305 |   |   | $ | 20,889,476 |   |

----

Index

|                                                                          |   |   |      |   |       |   |      |     |   |   | Accumulated   |   |   |     |     |   |   |   |
|-------------------------------------------------------------------------------|--------|--------|-----------|--------|------------|--------|-----------|----------|--------|--------|---------------|--------|--------|----------|----------|--------|--------|--------|
|                                                                          |   |   |      |   | Additional |   |      |     |   |   | Other         |   |   |     |     |   |   |   |
|                                                                          |   | Common |      |   | Paid-in    |   |      | Retained |   |   | Comprehensive |   |   | Treasury |     |   |   |   |
|                                                                          |   | Shares |      |   | Capital    |   |      | Earnings |   |   | Income/(Loss) |   |   | Shares   |     |   | Total  |   |
| Balances,                  January 31, 2004                                   |   | $      | 963,496   |   |       | $      | 7,955,459 |     |   | $      | 63,727,425    |   |   | $        | (328,616 | )      |   | $      | (12,047,030 | ) |   | $ | 60,270,734 |   |
|                                                                          |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| Comprehensive                  income:                                        |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| Net                  income                                                   |   |   | -         |   |       |   | -         |     |   |   | 4,814,679     |   |   |     | -        |   |   |   | - |   |   |   |   |   |
| Foreign                  currency translation adjustment                      |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | 224,890  |   |   |   | - |   |   |   |   |   |
| Interest                  rate swap, net of tax of ($70,683)                  |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | 137,208  |   |   |   | - |   |   |   |   |   |
| Minimum                  pension liability adjustment,net of tax of ($34,594) |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | 67,153   |   |   |   | - |   |   |   |   |   |
| Total                  comprehensive income                                   |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   | 5,243,930 |   |
|                                                                          |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| Dividends                  paid, $.1631 per share                             |   |   | -         |   |       |   | -         |     |   |   | (1,861,277    | )      |   |     | -        |   |   |   | - |   |   |   | (1,861,277 | ) |
| Dividend                  declared, $.0581 per share                          |   |   | -         |   |       |   | -         |     |   |   | (648,381      | )      |   |     | -        |   |   |   | - |   |   |   | (648,381 | ) |
| Stock                  option transactions                                    |   |   | -         |   |       |   | (24,813   | )        |   |   | -             |   |   |     | -        |   |   |   | 723,498 |   |   |   | 698,685 |   |
| Purchase                  of 43,841 treasury shares                           |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | -        |   |   |   | (538,500 | ) |   |   | (538,500 | ) |
| Balances,                  January 31, 2005                                   |   |   | 963,496   |   |       |   | 7,930,646 |     |   |   | 66,032,446    |   |   |     | 100,635  |   |   |   | (11,862,032 | ) |   |   | 63,165,191 |   |
|                                                                          |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| Comprehensive                  income:                                        |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| Net                  income                                                   |   |   | -         |   |       |   | -         |     |   |   | 7,313,284     |   |   |     | -        |   |   |   | - |   |   |   |   |   |
| Foreign                  currency translation adjustment                      |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | (168,362 | )      |   |   | - |   |   |   |   |   |
| Interest                  rate swap, net of tax of ($40,614)                  |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | 79,400   |   |   |   | - |   |   |   |   |   |
| Minimum                  pension liability adjustment,net of tax of $188,347  |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | (333,494 | )      |   |   | - |   |   |   |   |   |
| Total                  comprehensive income                                   |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   | 6,890,828 |   |
|                                                                          |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| Stock                  split four-for-three                                   |   |   | 321,165   |   |       |   | (321,165  | )        |   |   | -             |   |   |     | -        |   |   |   | - |   |   |   | - |   |
| Cash                  in lieu of fractional shares                            |   |   | -         |   |       |   | (1,914    | )        |   |   | -             |   |   |     | -        |   |   |   | - |   |   |   | (1,914 | ) |
| Dividends                  paid, $.1788 per share                             |   |   | -         |   |       |   | -         |     |   |   | (2,000,194    | )      |   |     | -        |   |   |   | - |   |   |   | (2,000,194 | ) |
| Dividend                  declared, $.0625 per share                          |   |   | -         |   |       |   | -         |     |   |   | (699,819      | )      |   |     | -        |   |   |   | - |   |   |   | (699,819 | ) |
| Stock                  option transactions                                    |   |   | -         |   |       |   | (43,387   | )        |   |   | -             |   |   |     | -        |   |   |   | 367,668 |   |   |   | 324,281 |   |
| Purchase                  of 12,548 treasury shares                           |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | -        |   |   |   | (140,135 | ) |   |   | (140,135 | ) |
| Balances,                  January 31, 2006                                   |   |   | 1,284,661 |   |       |   | 7,564,180 |     |   |   | 70,645,717    |   |   |     | (321,821 | )      |   |   | (11,634,499 | ) |   |   | 67,538,238 |   |
|                                                                          |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| Comprehensive                  income:                                        |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| Net                  income (Restated)                                        |   |   | -         |   |       |   | -         |     |   |   | 6,926,804     |   |   |     | -        |   |   |   | - |   |   |   |   |   |
| Foreign                  currency translation adjustment                      |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | 291,299  |   |   |   | - |   |   |   |   |   |
| Interest                  rate swap, net of tax of $21,772                    |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | (36,040  | )      |   |   | - |   |   |   |   |   |
| Securities                  available for sale, net of tax of ($840)          |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | 1,430    |   |   |   | - |   |   |   |   |   |
| Minimum                  pension liability adjustment, net of tax of $16,075  |   |   | -         |   |       |   | -         |     |   |   | -             |   |   |     | 31,661   |   |   |   | - |   |   |   |   |   |
| Total                  comprehensive income                                   |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   | 7,215,154 |   |
|                                                                          |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| Dividends                  paid, $.1925 per share                             |   |   | -         |   |       |   | -         |     |   |   | (2,157,604    | )      |   |     | -        |   |   |   | - |   |   |   | (2,157,604 | ) |
| Dividend                  declared, $.0675 per share                          |   |   | -         |   |       |   | -         |     |   |   | (757,029      | )      |   |     | -        |   |   |   | - |   |   |   | (757,029 | ) |
| Stock-based                  compensation                                     |   |   | -         |   |       |   | 327,200   |     |   |   | -             |   |   |     | -        |   |   |   | - |   |   |   | 327,200 |   |
| Stock                  option transactions                                    |   |   | -         |   |       |   | 19,328    |     |   |   | -             |   |   |     | -        |   |   |   | 127,845 |   |   |   | 147,173 |   |
| Balances,                                                                     |   |   |      |   |       |   |      |     |   |   |          |   |   |     |     |   |   |   |   |   |   |   |   |   |
| January                  31, 2007   (Restated)                 |   | $      | 1,284,661 |   |       | $      | 7,910,708 |     |   | $      | 74,657,888    |   |   | $        | (33,471  | )      |   | $      | (11,506,654 | ) |   | $ | 72,313,132 |   |

----

Index

|                                                           |   | Years                ended January 31, |       |
|----------------------------------------------------------------|--------|---------------------------------------------|------------|
|                                                           |   | 2007                                        |       |   | 2006 |   |   | 2005 |   |
| Net                sales to unaffiliated customers             |   | (Restated)                                  |       |   |   |   |   |   |   |
| Product                recovery/pollution control technologies |   | $                                           | 45,894,181 |   |   | $ | 42,563,591 |   |   | $ | 31,380,986 |   |
| Fluid                handling technologies                     |   |                                        | 25,868,798 |   |   |   | 23,533,933 |   |   |   | 22,892,843 |   |
| Filtration/purification                technologies            |   |                                        | 18,829,505 |   |   |   | 19,018,576 |   |   |   | 17,842,460 |   |
|                                                           |   | $                                           | 90,592,484 |   |   | $ | 85,116,100 |   |   | $ | 72,116,289 |   |
| Includes                foreign sales of:                      |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Product                recovery/pollution control technologies |   | $                                           | 8,344,441  |   |   | $ | 7,601,248 |   |   | $ | 4,420,913 |   |
| Fluid                handling technologies                     |   |                                        | 6,989,789  |   |   |   | 5,794,645 |   |   |   | 4,834,934 |   |
| Filtration/purification                technologies            |   |                                        | 7,012,071  |   |   |   | 7,614,056 |   |   |   | 6,196,282 |   |
|                                                           |   | $                                           | 22,346,301 |   |   | $ | 21,009,949 |   |   | $ | 15,452,129 |   |
|                                                           |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Income                from operations                          |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Product                recovery/pollution control technologies |   | $                                           | 4,339,795  |   |   | $ | 4,119,242 |   |   | $ | 1,626,727 |   |
| Fluid                handling technologies                     |   |                                        | 4,362,276  |   |   |   | 3,540,428 |   |   |   | 3,357,645 |   |
| Filtration/purification                technologies            |   |                                        | 1,055,004  |   |   |   | 2,002,934 |   |   |   | 2,399,743 |   |
|                                                           |   | $                                           | 9,757,075  |   |   | $ | 9,662,604 |   |   | $ | 7,384,115 |   |
|                                                           |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization expense           |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Product                recovery/pollution control technologies |   | $                                           | 473,354    |   |   | $ | 480,173 |   |   | $ | 486,214 |   |
| Fluid                handling technologies                     |   |                                        | 632,464    |   |   |   | 578,861 |   |   |   | 586,272 |   |
| Filtration/purification                technologies            |   |                                        | 496,320    |   |   |   | 427,306 |   |   |   | 419,408 |   |
|                                                           |   | $                                           | 1,602,138  |   |   | $ | 1,486,340 |   |   | $ | 1,491,894 |   |
|                                                           |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Capital                expenditures                            |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Product                recovery/pollution control technologies |   | $                                           | 252,777    |   |   | $ | 250,327 |   |   | $ | 315,644 |   |
| Fluid                handling equipment technologies           |   |                                        | 2,237,574  |   |   |   | 1,446,380 |   |   |   | 313,287 |   |
| Filtration/purification                technologies            |   |                                        | 1,571,101  |   |   |   | 349,443 |   |   |   | 431,848 |   |
|                                                           |   |                                        | 4,061,452  |   |   |   | 2,046,150 |   |   |   | 1,060,779 |   |
| Corporate                                                      |   |                                        | 337,458    |   |   |   | 2,105,103 |   |   |   | 132,988 |   |
|                                                           |   | $                                           | 4,398,910  |   |   | $ | 4,151,253 |   |   | $ | 1,193,767 |   |
|                                                           |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Identifiable                assets at January 31               |   |                                        |       |   |   |   |   |   |   |   |   |   |
| Product                recovery/pollution control technologies |   | $                                           | 34,907,323 |   |   | $ | 34,173,031 |   |   | $ | 30,361,707 |   |
| Fluid                handling technologies                     |   |                                        | 21,667,719 |   |   |   | 17,008,765 |   |   |   | 15,358,949 |   |
| Filtration/purification                technologies            |   |                                        | 20,514,339 |   |   |   | 17,653,316 |   |   |   | 15,618,157 |   |
|                                                           |   |                                        | 77,089,381 |   |   |   | 68,835,112 |   |   |   | 61,338,813 |   |
| Corporate                                                      |   |                                        | 19,652,276 |   |   |   | 20,236,279 |   |   |   | 21,348,791 |   |
|                                                           |   | $                                           | 96,741,657 |   |   | $ | 89,071,391 |   |   | $ | 82,687,604 |   |

----

Index

| NOTE                1: | NATURE                OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (RESTATED) |
|------------------------|-----------------------------------------------------------------------------------------------|

|                                                 |   | Year                EndedJanuary                31, 2007 |       |
|------------------------------------------------------|--------|----------------------------------------------------------|------------|
|                                                 |   | As                Restated                               |       |   | As                PreviouslyReported |   |
| Consolidated                Statement of Operations: |   |                                                     |       |   |   |   |
| Net                sales                             |   | $                                                        | 90,592,484 |   |   | $ | 91,411,114 |   |
| Net                income                            |   |                                                     | 6,926,804  |   |   |   | 7,190,829 |   |
| Earnings                per share, basic             |   | $                                                        | .62        |   |   | $ | .64 |   |
| Earnings                per share, diluted           |   | $                                                        | .61        |   |   | $ | .63 |   |

|                                       |   | As                ofJanuary                31, 2007 |       |
|--------------------------------------------|--------|-----------------------------------------------------|------------|
|                                       |   | As                Restated                          |       |   | As                PreviouslyReported |   |
| Consolidated                Balance Sheet: |   |                                                |       |   |   |   |
| Accounts                receivable         |   | $                                                   | 19,988,097 |   |   | $ | 20,837,589 |   |
| Inventory                                  |   |                                                | 19,720,842 |   |   |   | 19,296,279 |   |
| Accounts                payable            |   |                                                | 6,419,951  |   |   |   | 6,450,813 |   |
| Accrued                expenses            |   |                                                | 4,005,300  |   |   |   | 4,135,342 |   |
| Retained                earnings           |   |                                                | 74,657,888 |   |   |   | 74,921,913 |   |

----

Index

|                                      |   | Years |   |
|-------------------------------------------|--------|-------|--------|
| Buildings                and improvements |   | 10-39 |   |
| Machinery                and equipment    |   | 5-10  |   |
| Furniture                and fixtures     |   | 5-7   |   |
| Automotive                equipment       |   | 3     |   |

----

Index

|                                               |   | ProductRecovery/PollutionControl                Technologies |       |   | Fluid                HandlingTechnologies |   |   | Filtration/PurificationTechnologies |   |   | Total     |   |
|----------------------------------------------------|--------|--------------------------------------------------------------|------------|--------|-------------------------------------------|--------|--------|-------------------------------------|--------|--------|-----------|--------|
| Balance                as of February 1, 2006      |   | $                                                            | 15,706,667 |   |                                      | $      | 11,542 |                                |   | $      | 5,080,704 |   |   | $ | 20,798,913 |   |
| Goodwill                acquired during the period |   |                                                         | -          |   |                                      |   | -      |                                |   |   | -         |   |   |   | - |   |
| Balance                as of January 31, 2007      |   | $                                                            | 15,706,667 |   |                                      | $      | 11,542 |                                |   | $      | 5,080,704 |   |   | $ | 20,798,913 |   |

----

Index

----

Index

|                                          |   | 2007   |      |   | 2006   |   |      | 2005   |   |
|-----------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Cash                paid during the year for: |   |   |      |   |   |   |      |   |   |
| Interest                                      |   | $      | 357,130   |   |   | $      | 263,433   |   |   | $ | 327,776 |   |
| Income                taxes                   |   |   | 3,824,715 |   |   |   | 2,009,523 |   |   |   | 2,132,030 |   |

----

Index

----

Index

| NOTE                2: | FAIR                VALUE OF FINANCIAL INSTRUMENTS |
|------------------------|----------------------------------------------------|

|                           |   | January                31, |      |
|--------------------------------|--------|----------------------------|-----------|
|                           |   | 2007                       |      |   | 2006 |   |
| Fair                value      |   | $                          | 7,371,688 |   |   | $ | 4,412,956 |   |
| Carrying                amount |   |                       | 7,373,192 |   |   |   | 4,412,999 |   |

| NOTE                3: | INVENTORIES                (RESTATED) |
|------------------------|---------------------------------------|

|                           |   | January                31, |       |
|--------------------------------|--------|----------------------------|------------|
|                           |   | 2007                       |       |   | 2006 |   |
| Raw                materials   |   | $                          | 13,596,396 |   |   | $ | 9,116,168 |   |
| Work                in process |   |                       | 2,790,042  |   |   |   | 2,334,589 |   |
| Finished                goods  |   |                       | 3,334,404  |   |   |   | 4,987,724 |   |
|                           |   | $                          | 19,720,842 |   |   | $ | 16,438,481 |   |

----

Index

| NOTE                4: | PROPERTY,                PLANT AND EQUIPMENT |
|------------------------|----------------------------------------------|

|                                         |   | January                31, |       |
|----------------------------------------------|--------|----------------------------|------------|
|                                         |   | 2007                       |       |   | 2006 |   |
| Land                                         |   | $                          | 2,155,061  |   |   | $ | 2,117,169 |   |
| Buildings                and improvements    |   |                       | 17,631,279 |   |   |   | 11,524,857 |   |
| Machinery                and equipment       |   |                       | 11,653,472 |   |   |   | 11,362,610 |   |
| Furniture                and fixtures        |   |                       | 4,358,170  |   |   |   | 3,737,475 |   |
| Automotive                equipment          |   |                       | 1,462,080  |   |   |   | 1,317,282 |   |
| Construction                in progress      |   |                       | 206,898    |   |   |   | 3,210,341 |   |
|                                         |   |                       | 37,466,960 |   |   |   | 33,269,734 |   |
| Less                accumulated depreciation |   |                       | 20,633,972 |   |   |   | 19,431,513 |   |
|                                         |   | $                          | 16,832,988 |   |   | $ | 13,838,221 |   |

----

Index

| NOTE                5: | DEBT |
|------------------------|------|

|                                                                                                                                                                                                                                                                                                                                              |   | January                31, |      |   | January                31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|-----------|--------|----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                              |   | 2007                       |      |   | 2006                       |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                       |      |   |                       |   |
| 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 5.21% at January 31, 2007), maturing April, 2021,                collateralized by the Telford, PA building. |   | $                          | 3,332,246 |   |                       | $      | 50,000 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                       |      |   |                       |   |   |   |
| 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 6.12% at January 31, 2007), maturing                October,                2008.                                           |   |                       | 2,400,000 |   |                       |   | 3,600,000 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                       |      |   |                       |   |   |   |
| Note                payable, bank, payable in quarterly installments of $32,585 (25,000                Euro),                plus interest at a fixed rate of 3.82%, maturing January,                2016.                                                                                                                                       |   |                       | 1,173,061 |   |                       |   | 379,387 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                       |      |   |                       |   |   |   |
| Line                of credit, $391,020 (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 4.31% at January 31, 2007).                                                                                     |   |                       | 391,020   |   |                       |   | 364,559 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                       |      |   |                       |   |   |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                       | 7,296,327 |   |                       |   | 4,393,946 |   |
| Less                current portion                                                                                                                                                                                                                                                                                                               |   |                       | 1,955,202 |   |                       |   | 1,689,413 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                       | 5,341,125 |   |                       |   | 2,704,533 |   |
| Fair                market value of interest rate swap liability                                                                                                                                                                                                                                                                                  |   |                       | 76,865    |   |                       |   | 19,053 |   |
| Long-term                portion                                                                                                                                                                                                                                                                                                                  |   | $                          | 5,417,990 |   |                       | $      | 2,723,586 |   |

----

Index

| Year                Ending |   |   |      |
|----------------------------|--------|--------|-----------|
| January                31, |   |   |      |
| 2008                       |   | $      | 1,955,202 |   |
| 2009                       |   |   | 1,564,182 |   |
| 2010                       |   |   | 364,182   |   |
| 2011                       |   |   | 364,182   |   |
| 2012                       |   |   | 364,182   |   |
| Thereafter                 |   |   | 2,684,397 |   |
|                       |   | $      | 7,296,327 |   |

| NOTE                6: | ACCUMULATED                OTHER COMPREHENSIVE LOSS |
|------------------------|-----------------------------------------------------|

|                                                                        |   | 2007   |     |   | 2006   |   |
|-----------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Interest                rate swap, net of tax                               |   | $      | (48,425  | )      |   | $      | (12,385 | ) |
| Unrealized                gain on securities available-for sale, net of tax |   |   | 1,430    |   |   |   | - |   |
| Foreign                currency translation adjustment                      |   |   | 691,730  |   |   |   | 400,431 |   |
| Minimum                pension liability adjustment, net of tax             |   |   | (678,206 | )      |   |   | (709,867 | ) |
|                                                                        |   | $      | (33,471  | )      |   | $      | (321,821 | ) |

| NOTE                7: | SHAREHOLDERS’                EQUITY |
|------------------------|-------------------------------------------|

----

Index

| NOTE                8: | STOCK-BASED                COMPENSATION |
|------------------------|-----------------------------------------|

----

Index

|                                         |   | Fiscal                Years Ended |   |
|----------------------------------------------|--------|-----------------------------------|--------|
|                                         |   | January                31,        |   |
|                                         |   | 2007                              |   | 2006 |   |
|                                         |   |                              |   |   |   |
|  Expected                term (years)   |   | 5.0                               |   | 5.0 |   |
|  Risk-free                interest rate |   | 3.63%                - 4.58%      |   | 3.11%                - 4.58% |   |
|  Expected                volatility     |   | 30%                - 32%          |   | 30%                - 32% |   |
|  Dividend                yield          |   | 2.26%                - 3.39%      |   | 2.26%                - 3.73% |   |

|                                           |   |   |    |   |                          |   |    | Weighted                    |   |   |                           |   |
|------------------------------------------------|--------|--------|---------|--------|-------------------------------|--------|---------|-----------------------------|--------|--------|--------------------------------|--------|
|                                           |   |   |    |   | Weighted                      |   |    | Average                     |   |   |                           |   |
|                                           |   |   |    |   | Average                       |   |    | Remaining                   |   |   | Aggregate                      |   |
|                                           |   | Shares |    |   | Exercise                Price |   |    | Life                (years) |   |   | Intrinsic                Value |   |
| Options:                                       |   |   |    |   |                          |   |    |                        |   |   |                           |   |
| Outstanding                at February 1, 2006 |   |   | 810,742 |   |                          | $      | 9.8071  |                        |   |   | 7.68                           |   |   |   |   |
| Granted                                        |   |   | 179,000 |   |                          |   | 14.5300 |                        |   |   |                           |   |   |   |   |
| Forfeited                                      |   |   | 14,667  |   |                          |   | 11.9900 |                        |   |   |                           |   |   |   |   |
| Expired                                        |   |   | -       |   |                          |   | -       |                        |   |   |                           |   |   |   |   |
| Exercised                                      |   |   | 18,134  |   |                          |   | 8.1200  |                        |   |   |                           |   |   |   |   |
| Outstanding                at January 31, 2007 |   |   | 956,941 |   |                          | $      | 10.6892 |                        |   |   | 7.49                           |   |   | $ | 4,488,819 |   |
|                                           |   |   |    |   |                          |   |    |                        |   |   |                           |   |   |   |   |   |
| Exercisable                at January 31, 2007 |   |   | 721,602 |   |                          | $      | 9.6302  |                        |   |   | 7.49                           |   |   | $ | 4,149,067 |   |

----

Index

|                            |                             |   | Options                Outstanding |   | Options                Exercisable |
|---------------------------------|----------------------------------|--------|------------------------------------|--------|------------------------------------|
|                            |                             |   |                               |   |                               |   |   |   |   |   |   |
|                            |                             |   |                               |   | Weighted                Average    |   |   |   |   |   |   |
|                            |                             |   |                               |   | Remaining                          |   | Weighted                Average |   |   |   | Weighted                Average |
|                            |                             |   | Shares                             |   | Life                (years)        |   | Exercise                Price |   | Shares |   | Exercise                Price |
| Range                of prices: |                             |   |                               |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| $                               | 5.48              – 5.99   |   |                               |   | 32,980                             |   |   |   | 2.95 |   |   | $ | 5.5533 |   |   |   | 32,980 |   |   | $ | 5.5533 |   |
| $                               | 6.00              – 6.99   |   |                               |   | 64,716                             |   |   |   | 4.13 |   |   |   | 6.8063 |   |   |   | 64,716 |   |   |   | 6.8063 |   |
| $                               | 7.00              – 8.99   |   |                               |   | 205,231                            |   |   |   | 5.76 |   |   |   | 7.3740 |   |   |   | 205,231 |   |   |   | 7.3740 |   |
| $                               | 9.00              – 11.99  |   |                               |   | 161,340                            |   |   |   | 8.18 |   |   |   | 9.8813 |   |   |   | 161,340 |   |   |   | 9.8813 |   |
| $                               | 12.00              – 12.99 |   |                               |   | 313,674                            |   |   |   | 8.19 |   |   |   | 12.4230 |   |   |   | 257,335 |   |   |   | 12.5047 |   |
| $                               | 13.00              – 14.99 |   |                               |   | 179,000                            |   |   |   | 9.87 |   |   |   | 14.5300 |   |   |   | - |   |   |   | - |   |
|                            |                             |   |                               |   | 956,941                            |   |   |   | 7.49 |   |   | $ | 10.6892 |   |   |   | 721,602 |   |   | $ | 9.6302 |   |

|                                                                                                                                               |   | January                31,2006 |      |   | January                31,2005 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|--------|--------------------------------|--------|
| Net                income, as reported                                                                                                             |   | $                              | 7,313,284 |   |                           | $      | 4,814,679 |   |
| Add:  Stock-based                employee compensation expense included in reported net income, net                of                tax |   |                           |      |   |                           |   |   |   |
|                                                                                                                                               |   |                           | -         |   |                           |   | - |   |
| Less:  Pro-forma                expense related to stock options granted, net of tax                effects                              |   |                           | (308,080  | )      |                           |   | (409,919 | ) |
| Pro-forma                                                                                                                                          |   | $                              | 7,005,204 |   |                           | $      | 4,404,760 |   |
| Earnings                per share, basic:                                                                                                          |   |                           |      |   |                           |   |   |   |
| As                reported                                                                                                                         |   | $                              | .65       |   |                           | $      | .43 |   |
| Pro-forma                                                                                                                                          |   |                           | .63       |   |                           |   | .40 |   |
| Earnings                per share, diluted:                                                                                                        |   |                           |      |   |                           |   |   |   |
| As                reported                                                                                                                         |   | $                              | .65       |   |                           | $      | .43 |   |
| Pro-forma                                                                                                                                          |   |                           | .62       |   |                           |   | .39 |   |

----

Index

|     |   | 2007       |      |   | 2006   |   |      | 2005   |   |
|----------|--------|------------|-----------|--------|--------|--------|-----------|--------|--------|
| Current  |   | (Restated) |      |   |   |   |      |   |   |
| Federal  |   | $          | 2,884,686 |   |   | $      | 1,601,149 |   |   | $ | 1,501,388 |   |
| State    |   |       | 409,160   |   |   |   | 236,709   |   |   |   | 240,048 |   |
| Foreign  |   |       | 91,660    |   |   |   | 260,416   |   |   |   | 227,630 |   |
|     |   |       | 3,385,506 |   |   |   | 2,098,274 |   |   |   | 1,969,066 |   |
| Deferred |   |       | 26,203    |   |   |   | 610,593   |   |   |   | 511,225 |   |
|     |   | $          | 3,411,709 |   |   | $      | 2,708,867 |   |   | $ | 2,480,291 |   |

|                                          |   | 2007   |       |   | 2006   |   |
|-----------------------------------------------|--------|--------|------------|--------|--------|--------|
| Deferred                tax assets            |   |   |       |   |   |   |
| Inventory                cost capitalization  |   | $      | 135,157    |   |   | $      | 140,115 |   |
| Pension                cost                   |   |   | 1,232,328  |   |   |   | 863,819 |   |
| Non-compete                agreements         |   |   | 195,176    |   |   |   | 238,386 |   |
| Other                                         |   |   | 374,865    |   |   |   | 197,635 |   |
| Total                deferred tax assets      |   |   | 1,937,526  |   |   |   | 1,439,955 |   |
|                                          |   |   |       |   |   |   |   |   |
| Deferred                tax liabilities       |   |   |       |   |   |   |   |   |
| Accelerated                depreciation       |   |   | 649,252    |   |   |   | 628,737 |   |
| Inventory                - Dean Pump Division |   |   | 363,727    |   |   |   | 344,071 |   |
| Prepaid                expenses               |   |   | 231,736    |   |   |   | 211,556 |   |
| Goodwill                                      |   |   | 2,307,633  |   |   |   | 1,879,200 |   |
| Total                deferred tax liabilities |   |   | 3,552,348  |   |   |   | 3,063,564 |   |
| Net                deferred tax (liabilities) |   | $      | (1,614,822 | )      |   | $      | (1,623,609 | ) |

|                                                    |   | 2007       |          |         | 2006       |    |   | 2005   |          |
|---------------------------------------------------------|--------|------------|---------------|--------------|------------|---------|--------|--------|---------------|
| Computed                expected                        |   | (Restated) |          |         |       |    |   |   |          |   |   |   |   |   |   |
| federal                tax expense                      |   | $          | 3,515,094     |         | 34.0       | %       |   | $      | 3,407,531     |   |   |   | 34.0 | % |   | $ | 2,480,291 |   |   |   | 34.0 | % |
| State                income taxes,                      |   |       |          |         |       |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                  net of federal income   |   |       |          |         |       |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                  tax benefit             |   |       | 284,648  |         | 2.7   |    |   |   | 156,228  |   |   |   | 1.5  |   |   |   | 158,432  |   |   |   | 2.2  |   |
| Research                and                        |   |       |          |    |       |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                  development tax credits |   |       | (136,500      | )       | (1.3  | )  |   |   | (591,517      | ) |   |   | (5.9 |  ) |   |   | -  |   |   |   | -  |   |
| Other                                                   |   |       | (251,533      | )            | (2.4       | )       |   |   | (263,375      | ) |   |   | (2.6 | ) |   |   | (158,432 | ) |   |   | (2.2 | ) |
| Effective                income taxes                   |   | $          | 3,411,709     |         | 33.0       | %       |   | $      | 2,708,867     |   |   |   | 27.0 | % |   | $ | 2,480,291 |   |   |   | 34.0 | % |

----

Index

| NOTE                10: | LEASES                AND OTHER COMMITMENTS |
|-------------------------|---------------------------------------------|

| 2008 |   | $      | 171,961 |   |
|------|--------|--------|---------|--------|
| 2009 |   |   | 40,737  |   |
| 2010 |   |   | 39,382  |   |
| 2011 |   |   | 19,691  |   |

| NOTE                11: | EMPLOYEE                BENEFIT PLANS |
|-------------------------|---------------------------------------|

|                                                            |   | 2007   |       |   | 2006   |   |       | 2005   |   |
|-----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Service                cost - benefits earned during the period |   | $      | 708,246    |   |   | $      | 620,064    |   |   | $ | 629,673 |   |
| Interest                cost on projected benefit obligation    |   |   | 1,071,627  |   |   |   | 1,029,984  |   |   |   | 1,002,086 |   |
| Expected                return on assets                        |   |   | (1,169,858 | )      |   |   | (1,027,598 | )      |   |   | (996,546 | ) |
| Amortization                                                    |   |   | 186,051    |   |   |   | 118,306    |   |   |   | 86,147 |   |
| Curtailment                loss                                 |   |   | 234,180    |   |   |   | -          |   |   |   | - |   |
|                                                            |   | $      | 1,030,246  |   |   | $      | 740,756    |   |   | $ | 721,360 |   |

----

Index

|                                                                            |   | 2007   |       |   | 2006   |   |
|---------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                            |   |   |       |   |   |   |
| Change                in benefit obligation:                                    |   |   |       |   |   |   |
| Benefit                obligation at beginning of year                          |   | $      | 19,031,679 |   |   | $      | 16,804,683 |   |
| Service                cost                                                     |   |   | 708,246    |   |   |   | 620,064 |   |
| Interest                cost                                                    |   |   | 1,071,627  |   |   |   | 1,029,984 |   |
| Amendments                                                                      |   |   | 155,004    |   |   |   | 52,045 |   |
| Actuarial                loss                                                   |   |   | 433,170    |   |   |   | 1,415,687 |   |
| Curtailment                                                                     |   |   | (2,014,829 | )      |   |   | - |   |
| Benefits                paid                                                    |   |   | (872,240   | )      |   |   | (890,784 | ) |
| Benefit                obligation at end of year                                |   | $      | 18,512,657 |   |   | $      | 19,031,679 |   |
|                                                                            |   |   |       |   |   |   |   |   |
| Change                in plan assets:                                           |   |   |       |   |   |   |   |   |
| Fair                value of plan assets at beginning of year                   |   | $      | 14,107,986 |   |   | $      | 12,052,579 |   |
| Actual                gain on plan assets                                       |   |   | 1,814,190  |   |   |   | 1,028,733 |   |
| Employer                contribution                                            |   |   | 132,106    |   |   |   | 1,917,458 |   |
| Benefits                paid                                                    |   |   | (872,240   | )      |   |   | (890,784 | ) |
| Fair                value of plan assets at end of year                         |   | $      | 15,182,042 |   |   | $      | 14,107,986 |   |
|                                                                            |   |   |       |   |   |   |   |   |
| Funded                status                                                    |   | $      | (3,330,615 | )      |   | $      | (4,923,693 | ) |
| Unrecognized                actuarial loss                                      |   |   | 785,902    |   |   |   | 2,957,626 |   |
| Unrecognized                transition (asset)                                  |   |   | (1,602     | )      |   |   | (81,375 | ) |
| Unrecognized                prior service costs                                 |   |   | 292,217    |   |   |   | 691,484 |   |
| Net                amount recognized                                            |   | $      | (2,254,098 | )      |   | $      | (1,355,958 | ) |
|                                                                            |   |   |       |   |   |   |   |   |
| Amounts                recognized in the consolidated balance sheet consist of: |   |   |       |   |   |   |   |   |
| Accrued                benefit liability – short term                     |   | $      | (99,472    | )      |   | $      | (132,106 | ) |
| Accrued                benefit liability – long term                      |   |   | (3,231,143 | )      |   |   | (3,006,842 | ) |
| Intangible                assets                                                |   |   | -          |   |   |   | 690,887 |   |
| Accumulated                other comprehensive loss                             |   |   | 1,076,517  |   |   |   | 1,092,103 |   |
| Net                amount recognized                                            |   | $      | (2,254,098 | )      |   | $      | (1,355,958 | ) |

|                                                                                |   | January                31,2007 |     |
|-------------------------------------------------------------------------------------|--------|--------------------------------|----------|
| Accrued                benefit liability – short term                         |   |                           | -        |   |
| Accrued                benefit liability – long term                          |   | $                              | (278,624 | ) |
| Intangible                assets                                                    |   |                           | (108,693 | ) |
| Accumulated                other comprehensive loss (net of tax effect of $143,307) |   |                           | 244,010  |   |

----

Index

| Year                  EndingJanuary                  31, |   |   |       |
|----------------------------------------------------------|--------|--------|------------|
| 2008                                                     |   | $      | 887,016    |   |
| 2009                                                     |   |   | 922,998    |   |
| 2010                                                     |   |   | 973,248    |   |
| 2011                                                     |   |   | 1,029,402  |   |
| 2012                                                     |   |   | 1,150,863  |   |
| 2013                  - 2017                             |   |   | 6,974,849  |   |
|                                                     |   | $      | 11,938,376 |   |

|                                                       | 2007   | 2006                                 | 2005                                 |
|------------------------------------------------------------|--------|--------------------------------------|--------------------------------------|
| Discount                rate                               | 5.75%  | 5.75%                                | 6.25%                                |
| Expected                long-term rate of return on assets | 8.50%  | 8.50%                                | 9.00%                                |
| Rate                of increase in compensation levels     |   | 3%                for One Year       | 3%                for Two Years      |
| (where                applicable)                          | 4.50%  | Then                4.50% Thereafter | Then                4.50% Thereafter |

|                                                       | 2007                                 | 2006                                 | 2005                                 |
|------------------------------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
| Discount                rate                               | 5.75%                                | 6.25%                                | 6.25%                                |
| Expected                long-term rate of return on assets | 8.50%                                | 8.50%                                | 9.00%                                |
| Rate                of increase in compensation levels     | 3%                for One Year       | 3%                for Two Years      | 3%                for Three Years    |
| (where                applicable)                          | Then                4.50% Thereafter | Then                4.50% Thereafter | Then                4.50% Thereafter |

|                                              |   | 2006   |   |   | 2005   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Target                allocation:                 |   |   |   |   |   |   |
| Equity                securities                  |   |   | 40-80  | %      |   |   | 40-80 | % |
| Debt                securities                    |   |   | 20-60  | %      |   |   | 20-60 | % |
|                                              |   |   |   |   |   |   |   |   |
| Asset                allocation as of October 31: |   |   |   |   |   |   |   |   |
| Equity                securities                  |   |   | 75     | %      |   |   | 75 | % |
| Debt                securities                    |   |   | 25     | %      |   |   | 25 | % |
| Total                                             |   |   | 100    | %      |   |   | 100 | % |

----

Index

----

Index

| 1997                  Plan                                 |   | 2007                             |    |   | 2006                 |   |    | 2005                 |   |
|------------------------------------------------------------|--------|----------------------------------|---------|--------|----------------------|--------|---------|----------------------|--------|
| Options                  outstanding, beginning            |   |                             | 213,077 |   |                 |   | 260,368 |                 |   |   | 342,509 |   |
| Grants                                                     |   |                             | -       |   |                 |   | -       |                 |   |   | 11,907 |   |
| Exercises                                                  |   |                             | 12,801  |   |                 |   | 47,291  |                 |   |   | 94,048 |   |
| Cancellations                                              |   |                             | -       |   |                 |   | -       |                 |   |   | - |   |
| Options                  outstanding, ending               |   |                             | 200,276 |   |                 |   | 213,077 |                 |   |   | 260,368 |   |
|                                                       |   |                             |    |   |                 |   |    |                 |   |   |   |   |
| Options                  price range at January 31         |   | $                                | 5.4844  |   |                 | $      | 5.4844  |                 |   | $ | 5.4844 |   |
|                                                       |   | to                |    |   | to    |   |    | to    |   |
|                                                       |   | $                                | 12.8588 |   |                 | $      | 12.8588 |                 |   | $ | 12.8588 |   |
|                                                       |   |                             |    |   |                 |   |    |                 |   |   |   |   |
| Options                  exercisable at January 31         |   |                             | 200,276 |   |                 |   | 213,077 |                 |   |   | 243,780 |   |
| Options                  available for grant at January 31 |   |                             | 0       |   |                 |   | 0       |                 |   |   | 0 |   |
|                                                       |   |                             |    |   |                 |   |    |                 |   |   |   |   |
| 2001                  Plan                                 |   | 2007                             |    |   | 2006                 |   |    | 2005                 |   |
| Options                  outstanding, beginning            |   |                             | 597,665 |   |                 |   | 266,126 |                 |   |   | 133,284 |   |
| Grants                                                     |   |                             | 10,849  |   |                 |   | 344,340 |                 |   |   | 144,101 |   |
| Exercises                                                  |   |                             | 5,333   |   |                 |   | 4,977   |                 |   |   | 9,480 |   |
| Cancellations                                              |   |                             | 14,667  |   |                 |   | 7,824   |                 |   |   | 1,779 |   |
| Options                  outstanding, ending               |   |                             | 588,514 |   |                 |   | 597,665 |                 |   |   | 266,126 |   |
|                                                       |   |                             |    |   |                 |   |    |                 |   |   |   |   |
| Options                  price range at January 31         |   | $                                | 7.3575  |   |                 | $      | 7.3575  |                 |   | $ | 7.3575 |   |
|                                                       |   | to                     |    |   | to    |   |    | to    |   |
|                                                       |   | $                                | 14.5300 |   |                 | $      | 12.8588 |                 |   | $ | 12.8588 |   |
|                                                       |   |                             |    |   |                 |   |    |                 |   |   |   |   |
| Options                  exercisable at January 31         |   |                             | 521,326 |   |                 |   | 424,545 |                 |   |   | 128,715 |   |
| Options                  available for grant at January 31 |   |                             | 8,000   |   |                 |   | 4,182   |                 |   |   | 340,698 |   |
|                                                       |   |                             |    |   |                 |   |    |                 |   |   |   |   |
| 2005                  Plan                                 |   | 2007                             |    |   | 2006                 |   |    |                 |   |   |
| Options                  outstanding, beginning            |   |                             | -       |   |                 |   | -       |                 |   |   |   |   |
| Grants                                                     |   |                             | 168,151 |   |                 |   | -       |                 |   |   |   |   |
| Exercises                                                  |   |                             | -       |   |                 |   | -       |                 |   |   |   |   |
| Cancellations                                              |   |                             | -       |   |                 |   | -       |                 |   |   |   |   |
| Options                  outstanding, ending               |   |                             | 168,151 |   |                 |   | -       |                 |   |   |   |   |
|                                                       |   |                             |    |   |                 |   |    |                 |   |   |   |   |
| Options                  price at January 31               |   | $                                | 14.5300 |   |                 |   |    |                 |   |   |   |   |
|                                                       |   |                             |    |   |                 |   |    |                 |   |   |   |   |
| Options                  exercisable at January 31         |   |                             | -       |   |                 |   | -       |                 |   |   |   |   |
| Options                  available for grant at January 31 |   |                             | 498,515 |   |                 |   | 666,666 |                 |   |   |   |   |

----

Index

|                                          |   | 2007 |    |   | 2006   |   |    | 2005   |   |
|-----------------------------------------------|--------|------|---------|--------|--------|--------|---------|--------|--------|
| Options                outstanding, beginning |   | $    | 9.4379  |   |   | $      | 8.6994  |   |   | $ | 6.9060 |   |
| Grants                                        |   | $    | 14.5300 |   |   | $      | 10.9835 |   |   | $ | 12.8588 |   |
| Exercises                                     |   | $    | 8.1159  |   |   | $      | 6.2043  |   |   | $ | 6.7488 |   |
| Cancellations                                 |   | $    | 11.9900 |   |   | $      | 11.1080 |   |   | $ | 7.3575 |   |
| Options                outstanding, ending    |   | $    | 10.6892 |   |   | $      | 9.4379  |   |   | $ | 8.6994 |   |

| NOTE                12: | OTHER                INCOME, NET |
|-------------------------|----------------------------------|

|                                                |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Interest                income                      |   | $      | 962,296 |   |   | $      | 602,282 |   |   | $ | 276,118 |   |
| Other                miscellaneous income/(expense) |   |   | (29,706 | )      |   |   | 26,753  |   |   |   | 6,082 |   |
|                                                |   | $      | 932,590 |   |   | $      | 629,035 |   |   | $ | 282,200 |   |

| NOTE                13: | BUSINESS                SEGMENT DATA (RESTATED) |
|-------------------------|-------------------------------------------------|

----

Index

----

Index

| NOTE                14: | GEOGRAPHIC                INFORMATION (RESTATED) |
|-------------------------|--------------------------------------------------|

|                                   |   | 2007       |       |   | 2006   |   |       | 2005   |   |
|----------------------------------------|--------|------------|------------|--------|--------|--------|------------|--------|--------|
| Net                sales:              |   | (Restated) |       |   |   |   |       |   |   |
| United                States           |   | $          | 68,246,183 |   |   | $      | 64,106,151 |   |   | $ | 56,664,160 |   |
| Foreign                                |   |       | 22,346,301 |   |   |   | 21,009,949 |   |   |   | 15,452,129 |   |
|                                   |   | $          | 90,592,484 |   |   | $      | 85,116,100 |   |   | $ | 72,116,289 |   |
|                                   |   |       |       |   |   |   |       |   |   |   |   |   |
| Income                from operations: |   |       |       |   |   |   |       |   |   |   |   |   |
| United                States           |   | $          | 7,628,754  |   |   | $      | 7,112,573  |   |   | $ | 5,731,250 |   |
| Foreign                                |   |       | 2,128,321  |   |   |   | 2,550,031  |   |   |   | 1,652,865 |   |
|                                   |   | $          | 9,757,075  |   |   | $      | 9,662,604  |   |   | $ | 7,384,115 |   |
|                                   |   |       |       |   |   |   |       |   |   |   |   |   |
| Total                assets:           |   |       |       |   |   |   |       |   |   |   |   |   |
| United                States           |   | $          | 86,820,188 |   |   | $      | 79,295,147 |   |   | $ | 75,154,819 |   |
| Foreign                                |   |       | 9,921,469  |   |   |   | 9,776,244  |   |   |   | 7,532,785 |   |
|                                   |   | $          | 96,741,657 |   |   | $      | 89,071,391 |   |   | $ | 82,687,604 |   |

| NOTE                15: | CONTINGENCIES |
|-------------------------|---------------|

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Index

|                          |   |                     |       |   |                        |   |      |                      |   |   | Earnings                  |   |   | Earnings                  |   |
|-------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|-----------|---------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|
|                          |   |                     |       |   |                        |   |      |                      |   |   | Per                Share, |   |   | Per                Share, |   |
| 2006                          |   | Net                Sales |       |   | Gross                Profit |   |      | Net                Income |   |   | Basic                     |   |   | Diluted                   |   |
| First                Quarter  |   | $                        | 17,927,612 |   |                        | $      | 5,954,275 |                      |   | $      | 1,318,218                 |   |   | $                         | .12    |   |   | $ | .12 |   |
| Second                Quarter |   |                     | 22,646,520 |   |                        |   | 7,062,723 |                      |   |   | 1,956,549                 |   |   |                      | .18    |   |   |   | .17 |   |
| Third                Quarter  |   |                     | 21,918,792 |   |                        |   | 6,713,264 |                      |   |   | 1,882,022                 |   |   |                      | .17    |   |   |   | .17 |   |
| Fourth                Quarter |   |                     | 22,623,176 |   |                        |   | 6,944,397 |                      |   |   | 2,156,495                 |   |   |                      | .19    |   |   |   | .19 |   |
|                          |   |                     |       |   |                        |   |      |                      |   |   |                      |   |   |                      |   |   |   |   |   |   |
|                          |   |                     |       |   |                        |   |      |                      |   |   |                      |   |   |                      |   |   |   |   |   |   |
|                          |   |                     |       |   |                        |   |      |                      |   |   |                      |   |   | Earnings                  |   |   | Earnings |   |
|                          |   |                     |       |   |                        |   |      |                      |   |   |                      |   |   | Per                Share, |   |   | Per                Share, |   |
| 2007                          |   | Net                Sales |       |   | Gross                Profit |   |      | Net                Income |   |   | Basic                     |   |   | Diluted                   |   |
| First                Quarter  |   | $                        | 19,779,041 |   |                        | $      | 5,855,359 |                      |   | $      | 1,207,448                 |   |   | $                         | .11    |   |   | $ | .11 |   |
| Second                Quarter |   |                     | 23,778,882 |   |                        |   | 6,734,490 |                      |   |   | 1,808,685                 |   |   |                      | .16    |   |   |   | .16 |   |
| Third                Quarter  |   |                     | 25,008,855 |   |                        |   | 8,133,328 |                      |   |   | 2,049,082                 |   |   |                      | .18    |   |   |   | .18 |   |
| Fourth                Quarter |   |                     | 22,025,706 |   |                        |   | 7,392,040 |                      |   |   | 1,861,589                 |   |   |                      | .16    |   |   |   | .16 |   |

Item      9.  Changes in and Disagreements      with      Accountants on Accounting and Financial Disclosure:

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nan

|   | (a) | Exhibits                and Financial                Statements and Schedules: |
|--------|-----|--------------------------------------------------------------------------------|

|   | (1) | Financial                Statements and Schedules: |
|--------|-----|----------------------------------------------------|

|   | (2) | Exhibits,                including those incorporated by reference: |
|--------|-----|---------------------------------------------------------------------|

| Exhibit                No. |   | Description                                                                                                                                                                                                                                                                                                                               |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (2)(c)                     |   | Agreement                and Plan of Merger dated July 31, 2003 by and between Met-Pro Corporation,                a Delaware corporation, and Met-Pro Pennsylvania, Inc., a Pennsylvania                corporation, incorporated by reference to the Company’s Current Report on                Form 8-K filed on August 6, 2003. |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (3)(f)                     |   | Articles                of Incorporation of Met-Pro Corporation, a Pennsylvania corporation                formerly known as Met-Pro Pennsylvania, Inc., incorporated by reference                to                the Company’s Current Report of Form 8-K filed on August 6,                2003.                                |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (3)(g)                     |   | By-Laws                of Met-Pro Corporation, a Pennsylvania corporation formerly known                as                Met-Pro Pennsylvania, Inc., incorporated by reference to the Company’s                Current Report on Form 8-K filed on August 6, 2003.                                                                 |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (4)                        |   | Shareholders’                Rights Plan, incorporated by reference to the Company’s Current Report on                Form 8-K filed on January 6, 2000.                                                                                                                                                                      |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (10)(b)                    |   | The                1997 Stock Option Plan, incorporated by reference to the Company’s                Registration Statement on Form S-8 filed January 16,                1998.*                                                                                                                                                     |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (10)(d)                    |   | Amendment                No. 1 to the 1997 Stock Option Plan, incorporated by reference to                the                Company’s Annual Report on Form 10-K filed on May 4,                2001.*                                                                                                                             |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (10)(f)                    |   | Key                Employee Severance Agreement between Met-Pro Corporation and Gary                J.                Morgan, incorporated by reference to the Company’s Annual Report on Form                10-K filed on May 4, 2001.*                                                                                           |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (10)(g)                    |   | Key                Employee Severance Agreement between Met-Pro Corporation and Raymond                J. De                Hont, incorporated by reference to the  Company’s Annual Report                on Form 10-K filed on May 4, 2001.*                                                                            |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (10)(i)                    |   | Amendment                to Key Employee Severance Agreement between Met-Pro Corporation and                Gary                J. Morgan, incorporated by reference to the Company’s Annual Report on                Form 10-K filed on May 4, 2001.*                                                                              |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (10)(j)                    |   | The                Company’s Director’s Retirement Plan, incorporated by reference to the                Company’s Annual Report on Form 10-K filed on May 4,                2001.*                                                                                                                                     |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| (10)(k)                    |   | Amendment                No. 1 to the Company’s Director’s Retirement Plan, incorporated by                reference to the Company’s Annual Report on Form 10-K filed on May 4,                2001.*                                                                                                                  |

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Index

| Exhibit                No. |   | Description                                                                                                                                                                                                                                                                                                                   |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(l)                    |   | Amendment                No. 2 to the Company’s Director’s Retirement Plan, incorporated by                reference to the Company’s Annual Report on Form 10-K filed on May 4,                2001.*                                                                                                      |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(m)                    |   | Restoration                Plan, effective February 1, 2000, incorporated by reference to the                Company’s Annual Report on Form 10-K filed on May 4,                2001.*                                                                                                                            |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(n)                    |   | Amendment                No. 1 to the Company’s Restoration Plan, incorporated by reference to the                Company’s Annual Report on Form 10-K filed on May 4,                2001.*                                                                                                                      |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(o)                    |   | Additional                1% Supplemental Executive Retirement Plan, effective February 1,                2000,                incorporated by reference to the Company’s Annual Report on Form 10-K                filed on May 4, 2001.*                                                                              |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(p)                    |   | The                2001 Equity Incentive Plan, incorporated by reference to the Company’s                Registration Statement on Form S-8 filed August 22,                2001.*                                                                                                                                      |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(q)                    |   | Year                2000 Employee Stock Purchase Plan, incorporated by reference to the                Company’s Registration Statement on Form S-8 filed on June 13,                2000.*                                                                                                                             |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(r)                    |   | Salaried                Pension Plan Amended and Restated effective September 1, 2000,                incorporated by reference to the Company’s Annual Report on Form 10-K                filed on April 28, 2003.*                                                                                                    |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(s)                    |   | First                Amendment to the Company’s Salaried Pension Plan dated August 15, 2002,                incorporated by reference to the Company’s Annual Report on Form 10-K                filed on April 28, 2003.*                                                                                        |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(t)                    |   | Second                Amendment to the Company’s Salaried Pension Plan dated October 23, 2002,                incorporated by reference to the Company’s Annual Report on Form 10-K                filed on April 28, 2003.*                                                                                      |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(u)                    |   | Amendment                No. 3 to the Company’s Directors’ Retirement Plan dated as of February 24,                2003, incorporated by reference to the Company’s Annual Report on Form                10-K filed on April 28, 2003.*                                                                     |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(v)                    |   | Amendment                No. 1 to the Company’s Additional 1% Supplemental Executive Plan dated as                of March 21, 2003, incorporated by reference to the Company’s Annual                Report on Form 10-K filed on April 28, 2003.*                                                               |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(w)                    |   | Directors                Retirement Plan Trust dated as of February 11, 2000, incorporated                by                reference to the Company’s Annual Report on Form 10-K filed on April 28,                2003.*                                                                                              |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(x)                    |   | Amendment                No. 1 to the Company’s Directors’ Retirement Plan Trust dated as of                February 24, 2003, incorporated by reference to the Company’s Annual                Report on Form 10-K filed on April 28, 2003.*                                                               |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(y)                    |   | Amendment                No. 2 to the Company’s Directors’ Retirement Plan Trust dated as of                February 24, 2003, incorporated by reference to the Company’s Annual                Report on Form 10-K filed on April 28, 2003.*                                                               |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(z)                    |   | Restoration                and Supplemental Executive Retirement Plan Trust Agreement dated                as of                February 11, 2000, incorporated by reference to the Company’s Annual                Report on Form 10-K filed on April 28, 2003.*                                                       |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(aa)                   |   | Amendment                No. 1 to the Company’s Restoration and Supplemental Executive Retirement                Plan Trust Agreement dated as of February 24, 2003, incorporated                by                reference to the Company’s Annual Report on Form 10-K filed on April 28,                2003.* |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(ab)                   |   | The                2005 Equity Incentive Plan, incorporated by reference to the Company’s                Registration Statement on Form S-8 filed June 9, 2005.*                                                                                                                                                        |
|                       |   |                                                                                                                                                                                                                                                                                                                          |
| (10)(ac)                   |   | Third                Amendment to the Company’s Salaried Pension Plan dated as of August 31,                2005,  incorporated by reference to the Company’s Annual Report                on Form 10-K filed on April 13,                2007.*                                                        |

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| Exhibit                No. |   | Description                                                                                                                                                                                                                                                             |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                                                    |
| (10)(ad)                   |   | Fourth                Amendment to the Company’s Salaried Pension Plan dated as of April 5,                2006,  incorporated by reference to the Company’s Annual Report                on Form 10-K filed on April 13, 2007.*                  |
|                       |   |                                                                                                                                                                                                                                                                    |
| (10)(ae)                   |   | Fifth                Amendment to the Company’s Salaried Pension Plan dated as of October 18,                2006,  incorporated by reference to the Company’s Annual Report                on Form 10-K filed on April 13,                2007.* |

| (11)   |   | Statement                  Re-computation of Per Share Earnings. See page 30 of Item                  8. |
|--------|--------|----------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                     |
| (21)   |   | List                  of Subsidiaries of Registrant as of January 31,                  2007:             |

| Corporate                Name                                |   | Jurisdiction                of Incorporation    |   | Name                under which Business is                Conducted                                                                                 |
|--------------------------------------------------------------|--------|-------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                         |   |                                            |   |                                                                                                                                                 |
| Mefiag                B.V.                                   |   | The                Netherlands                  |   | Mefiag                B.V., a wholly ownedSubsidiary                of Met-Pro Corporation                                                           |
|                                                         |   |                                            |   |                                                                                                                                                 |
| Flex-Kleen                Canada, Inc.                       |   | Ontario,                Canada                  |   | Flex-Kleen                Canada, Inc.,a                wholly-owned subsidiary ofMet-Pro                Corporation                                 |
|                                                         |   |                                            |   |                                                                                                                                                 |
| Strobic                Air Corporation                       |   | Delaware                                        |   | Strobic                Air Corporation,a                wholly-owned subsidiary ofMet-Pro                Corporation                                 |
|                                                         |   |                                            |   |                                                                                                                                                 |
| MPC                Inc.                                      |   | Delaware                                        |   | MPC                Inc.,a                wholly-owned subsidiary ofMet-Pro                Corporation                                                |
|                                                         |   |                                            |   |                                                                                                                                                 |
| Pristine                Water Solutions Inc.                 |   | Delaware                                        |   | Pristine                Water Solutions Inc.,a                wholly-owned subsidiary ofMet-Pro                Corporation                           |
|                                                         |   |                                            |   |                                                                                                                                                 |
| Mefiag                (Guangzhou) Filter Systems Ltd.        |   | People’s                Republic of China |   | Mefiag                (Guangzhou) Filter Systems Ltd.,A                wholly-owned subsidiary of Met-Pro (Hong Kong) Company                Limited |
|                                                         |   |                                            |   |                                                                                                                                                 |
| Met-Pro                (Hong Kong)Company  Limited |   | Hong                Kong                        |   | Met-Pro                (Hong Kong) CompanyLimited,                a wholly-owned subsidiaryof                Met-Pro Corporation                     |

| (23)   |   | Consent                  of Independent Registered Public Accounting Firm **                                                                                                                                             |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                     |
| (31.1) |   | Certification                  of Chief Executive Officer pursuant to                  Section 302 of the Sarbanes-Oxley Act of 2002 **                                                                                  |
|   |   |                                                                                                                                                                                                                     |
| (31.2) |   | Certification                  of Chief Financial Officer pursuant to                  Section 302 of the Sarbanes-Oxley Act of 2002 **                                                                                  |
|   |   |                                                                                                                                                                                                                     |
| (32.1) |   | Certification                  of Chief Executive Officer pursuant to 18                  U.S.C. Section 1350, as Adopted pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002 **                  |
|   |   |                                                                                                                                                                                                                     |
| (32.2) |   | Certification                  of Chief Financial Officer pursuant to 18                  U.S.C. Section 1350, as Adopted pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002                  ** |

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Index

|   | (9) | Voting                trust agreements. |
|--------|-----|-----------------------------------------|

|   | (12) | Statements                re computation of ratios. |
|--------|------|-----------------------------------------------------|

|   | (13) | Annual                report to security holders. |
|--------|------|---------------------------------------------------|

|   | (14) | Code                of ethics. |
|--------|------|--------------------------------|

|   | (16) | Letter                re change in certifying accountant. |
|--------|------|-----------------------------------------------------------|

|   | (18) | Letter                re change in accounting principles. |
|--------|------|-----------------------------------------------------------|

|   | (22) | Published                report regarding matters submitted to vote of security holders. |
|--------|------|------------------------------------------------------------------------------------------|

|   | (24) | Power                of attorney. |
|--------|------|-----------------------------------|

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Index

IGNA

|                                            |   | MET-PRO                CORPORATION                                            |
|-------------------------------------------------|--------|-------------------------------------------------------------------------------|
|                                            |   |                                                                          |
| February                12,                2008 |   | By:                /s/ Raymond                J.                De Hont  |
| Date                                            |   |  Raymond                J. De Hont                                       |
|                                            |   |  Chairman,                Chief Executive                                |
|                                            |   |  Officer                and President                                    |

|   | Signature                                                  | Title                                         | Date                             |   |
|--------|------------------------------------------------------------|-----------------------------------------------|----------------------------------|--------|
|   |                                                       |                                          |                             |   |
|   | /s/                Raymond J. De                Hont       | Chairman,                                     | February                12, 2008 |   |
|   | Raymond                J. De Hont                          | Chief                Executive Officer        |                             |   |
|   |                                                       | and                President                  |                             |   |
|   |                                                       |                                          |                             |   |
|   |                                                       |                                          |                             |   |
|   | /s/                Gary J.                Morgan           | Senior                Vice President-Finance, | February                12, 2008 |   |
|   | Gary                J. Morgan                              | Secretary,                Treasurer,          |                             |   |
|   |                                                       | Chief                Financial Officer,       |                             |   |
|   |                                                       | Chief                Accounting Officer       |                             |   |
|   |                                                       | and                Director                   |                             |   |
|   |                                                       |                                          |                             |   |
|   | /s/                Nicholas                DeBenedictis    | Director                                      | February                12 ,2008 |   |
|   | Nicholas                DeBenedictis                       |                                          |                             |   |
|   |                                                       |                                          |                             |   |
|   | /s/                George H.                Glatfelter II  | Director                                      | February                12, 2008 |   |
|   | George                H. Glatfelter II                     |                                          |                             |   |
|   |                                                       |                                          |                             |   |
|   | /s/                Alan                Lawley              | Director                                      | February                12, 2008 |   |
|   | Alan                Lawley                                 |                                          |                             |   |
|   |                                                       |                                          |                             |   |
|   | /s/                Michael J.                Morris        | Director                                      | February                12, 2008 |   |
|   | Michael                J. Morris                           |                                          |                             |   |
|   |                                                       |                                          |                             |   |
|   | /s/                Constantine N.                Papadakis | Director                                      | February                12, 2008 |   |
|   | Constantine                N. Papadakis                    |                                          |                             |   |

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