----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-K**

**[      X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT      OF 1934 **

**or**

**[          ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT OF 1934**

**MET-PRO      CORPORATION**

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

|                                                    |   | **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)                         |   |   |

**DOCUMENTS      INCORPORATED BY REFERENCE**

|                                                                                                                      | **Form                10-K**   |
|---------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                                                                                                                      | **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                            |

----

----

**FORM      10-K**

**Index**

|                        |   | Page   |
|-----------------------------|--------|--------|
|                        |   |   |
| **PART                  I** |   |   |

|   | Item                    1.  | Business                                                                                  | 1  |
|--------|-----------------------------|-------------------------------------------------------------------------------------------|----|
|   |                        | Executive                    Officers of the                    Registrant                | 6  |
|   | Item                    1A. | Risk                    Factors                                                           | 7  |
|   | Item                    1B. | Unresolved                    Staff Comments                                              | 9  |
|   | Item                    2.  | Properties                                                                                | 10 |
|   | Item                    3.  | Legal                    Proceedings                                                      | 11 |
|   | Item                    4.  | Submission                    of Matters to a Vote of Security                    Holders | 11 |

|                         |   |   |   |
|------------------------------|--------|--------|--------|
| **PART                  II** |   |   |

|   | Item                  5.  | Market                  for the Registrant’s Common Equity, Related                  Shareholder Matters and Issuer                  Purchases of Equity                  Securities  | 12     |
|--------|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | Item                  6.  | Selected                  Financial Data                                                                                                                                                         | 14     |
|   | Item                  7.  | Management’s                  Discussion and Analysis of Financial                  Condition and Results of Operations                                                                         | 15     |
|   |                 | Forward-Looking                  Statements; Factors That May                  Affect Future Results                                                                                                  | 22     |
|   | Item                  7A. | Quantitative                  and Qualitative Disclosure About Market                  Risks                                                                                                          | 23     |
|   | Item                  8.  | Financial                  Statements and Supplementary                  Data                                                                                                                         | 24     |
|   | Item                  9.  | Changes                  in and Disagreements with Accountants on                  Accounting and Financial Disclosure                                                                                | 54     |
|   | Item                  9A. | Controls                  and Procedures                                                                                                                                                              | 54     |
|   | Item                  9B. | Other                  Information                                                                                                                                                                    | 54     |
|   |                      |                                                                                                                                                                                                  |   |

| **PART                  III** |   |   |
|-------------------------------|--------|--------|

|   | Item                    10. | Directors,                    Executive Officers and Corporate                    Governance                                         | 55     |
|--------|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | Item                    11. | Executive                    Compensation                                                                                            | 55     |
|   | Item                    12. | Security                    Ownership of Certain Beneficial Owners and                    Management and Related Shareholder Matters | 55     |
|   | Item                    13. | Certain                    Relationships and Related Transactions, and                    Director Independence                      | 55     |
|   | Item                    14. | Principal                    Accountant Fees and                    Services                                                         | 55     |
|   |                        |                                                                                                                                 |   |

| **PART                  IV** |   |   |
|------------------------------|--------|--------|

|   | Item                  15. | Exhibits                  and Financial Statement                  Schedules | 56 |
|--------|---------------------------|------------------------------------------------------------------------------|----|

|           |   |   |   |
|----------------|--------|--------|--------|
| **SIGNATURES** |   | 60     |

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 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. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**PART      I**

**Item      1. *****Business:***

*General:*

*www.met-pro.com*
*.*

*www.met-pro.com*
* *
*www.met-pro.com*

*Products,      Services and Markets:*

*Product      Recovery/Pollution Control Technologies Reporting Segment:*

Index

----

*Fluid      Handling Technologies Reporting Segment:*

Index

----

*Filtration/Purification      Technologies Segment*

*United      States Sales versus Foreign Sales:*

|                         | **Percentage                of Net Sales**       |
|------------------------------|--------------------------------------------------|
|                         | **Fiscal                Year Ended January 31,** |
|                         | **2007**                                         |   | **2006** |   | **2005** |   |
| United                States | 74.7                                             | % | 75.3 | % | 78.6 | % |
| Foreign                      | 25.3                                             | % | 24.7 | % | 21.4 | % |
| Net                Sales     | 100.0                                            | % | 100.0 | % | 100.0 | % |

Index

----

*Customers:*

*Seasonality:*

*Competition:*

*Research      and Development:*

*Patents      and Trademarks:*

*Regulatory      Matters:*

Index

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*Backlog:*

*Raw      Materials:*

*Employees:*

*Foreign      Operations:*

*New      York Stock Exchange and Securities and Exchange Commission      Certifications:*

Index

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*Executive      Officers of the Registrant:*

Index

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**Item      1A. *****Risk      Factors:***

|   | ***We                sell our products in highly competitive markets, which puts pressure                on                our profit margins and limits our ability to maintain or increase                the                market share of our                products.*** |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***If                we fail to comply with the requirements of Section 404 of the                Sarbanes-Oxley Act of 2002, our business prospects and stock valuation                could be adversely                affected.*** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ***We                are party to asbestos-containing product litigation that could adversely                affect our financial condition, results of operations and cash                flows.*** |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|   | ***If                we are unable to obtain raw materials at favorable prices, our operating                margins and results of operations will be adversely                affected.*** |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ***Significant                changes in pension fund investment performance or assumptions relating                to                pension costs may have a material effect on the valuation of our                obligations under our defined benefit pension plans, the funded status                of                these plans and our pension                expense.*** |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***We                may incur material costs as a result of product liability and warranty                claims, which could adversely affect our financial condition, results                of                operations and cash                flows.*** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Natural      or man-made disasters could negatively affect our      business.**

***We      plan to expand the international distribution and manufacturing of our products,      which will subject us to additional business risks.***

| · | 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

----

***Our      products could infringe the intellectual property rights of others and we may      be      exposed to costly litigation.***

***Our      ability to operate our Company effectively could be impaired if we fail to      attract and retain key personnel.***

***If      our goodwill or indefinite-lived intangible assets become impaired, we may      be      required to record a significant charge to earnings.***

***Changes      in accounting may affect our reported earnings.***

***Additional      Risks to the Company.***

*Forward-Looking      Statements; Factors That May Affect Future Results *

**Item      1B. *****Unresolved      Staff Comments:***

Index

----

**Item      2. *****Properties:***

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

| (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      3. *****Legal      Proceedings:***

*Certain      of the statements made in this Item 3 (and elsewhere in this Report) are“forward-looking” statements which are subject to the considerations set forth      in “Forward-Looking Statements; Factors That May Affect Future Results” located      in the Management’s Discussion and Analysis of Financial Condition and Results      of Operations section of this Report, and we refer you to these      considerations.*

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.

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

Index

----

**PART      II**

**Item      5. *****Market      for the Registrant’s Common Equity, Related Shareholder Matters and Issuer      Purchases of Equity Securities:***

*Market      Information*

|                                             |      | **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 |

*Holders*

*Stock      Split*

*Dividends*

*Securities      Authorized For Issuance Under Equity Compensation Plans. *

|                             |                                    |                                    | **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

----

*Stock      Repurchases.*

**Issuer      Purchases of**

**Equity      Securities**

| **Period**                          |   | **Total****Number                of Shares****Purchased** |   | **Average****Price                Paid****Per                Share** |   | **Total****Number                of****Shares****Purchased****As                Part of****Publicly****Announced****Plans                or****Programs** |   | **Maximum****Number                of****Shares****That                May****Yet                Be****Purchased****Under                the****Plan                or****Programs** |           ** (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

----

**Item      6. *****Selected      Financial Data:***

|                                                           | **                               Years ended January 31,** |
|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
|                                                           | **2007                   **                                                                                            | **2006    ** | **2005    ** | **2004    ** | **2003    ** |
|                                                           |                                                                                                                                  |   |   |   |   |
| **Selected                Operating Statement Data**           |                                                                                                                                  |   |   |   |   |
| Net                sales                                       | $91,411,114                                                                                                                           | $85,116,100 | $72,116,289 | $75,058,929 | $69,619,382 |
| Income                from operations                          | 10,151,142                                                                                                                            | 9,662,604 | 7,384,115 | 9,850,090 | 9,160,234 |
| Net                income                                      | 7,190,829                                                                                                                             | 7,313,284 | 4,814,679 | 6,346,579 | 5,888,379 |
| Earnings                per share, basic (a)                   | .64                                                                                                                                   | .65 | .43 | .57 | .54 |
| Earnings                per share, diluted (a)                 | .63                                                                                                                                   | .65 | .43 | .57 | .53 |
|                                                           |                                                                                                                                  |   |   |   |   |
| **Selected                Balance Sheet Data**                 |                                                                                                                                  |   |   |   |   |
| Current                assets (b)                              | $59,228,282                                                                                                                           | $53,413,413 | $50,034,033 | $47,569,003 | $40,000,524 |
| Current                liabilities (b)                         | 14,525,297                                                                                                                            | 14,361,953 | 12,916,500 | 11,429,817 | 8,047,935 |
| Working                capital (b)                             | 44,702,985                                                                                                                            | 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)                                | 97,166,586                                                                                                                            | 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                | 72,577,157                                                                                                                            | 67,538,238 | 63,165,191 | 60,270,734 | 56,045,885 |
| Total                capitalization                            | 77,995,147                                                                                                                            | 70,261,824 | 67,204,259 | 65,718,603 | 63,157,880 |
| Return                on average total assets, % (b)           | 7.7                                                                                                                                   | 8.5 | 5.9 | 8.2 | 8.3 |
| Return                on average shareholders’ equity, % | 10.3                                                                                                                                  | 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)        | 6.47                                                                                                                                  | 6.03 | 5.66 | 5.43 | 5.07 |
| Cash                dividend 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

----

**Item      7. *****Management’s      Discussion and Analysis of Financial Condition and Results of      Operations:***

*Results      of Operations:*

|                                                       |     | **Years                ended January 31,** |     |   |
|------------------------------------------------------------|----------|--------------------------------------------|----------|--------|
|                                                       | **2007** |                                       | **2006** |   | **2005** |   |
|                                                       |     |                                       |     |   |   |   |
| Net                sales                                   | 100.0    | %                                          | 100.0    | %      | 100.0 | % |
| Cost                of goods sold                          | 68.8     | %                                          | 68.7     | %      | 68.6 | % |
|                                                       |     |                                       |     |   |   |   |
| Gross                profit                                | 31.2     | %                                          | 31.3     | %      | 31.4 | % |
|                                                       |     |                                       |     |   |   |   |
| Selling,                general and administrative expense | 19.8     | %                                          | 20.0     | %      | 21.0 | % |
| Loss                on the curtailment of pension benefits | .3       | %                                          | -        |   | - |   |
| Patent                litigation                           | -        |                                       | -        |   | .2 | % |
|                                                       |     |                                       |     |   |   |   |
| Income                from operations                      | 11.1     | %                                          | 11.3     | %      | 10.2 | % |
|                                                       |     |                                       |     |   |   |   |
| Interest                expense                            | (.4      | %)                                         | (.3      | %)     | (.5 | %) |
| Other                income, net                           | 1.0      | %                                          | .8       | %      | .4 | % |
|                                                       |     |                                       |     |   |   |   |
| Income                before taxes                         | 11.7     | %                                          | 11.8     | %      | 10.1 | % |
|                                                       |     |                                       |     |   |   |   |
| Provision                for taxes                         | 3.8      | %                                          | 3.2      | %      | 3.4 | % |
|                                                       |     |                                       |     |   |   |   |
| Net                income                                  | 7.9      | %                                          | 8.6      | %      | 6.7 | % |

*FYE      2007 vs FYE 2006:*

Index

----

Index

----

*FYE      2006 vs FYE 2005:*

Index

----

*Liquidity:*

*Capital      Resources and Requirements:*

Index

----

*“*

Index

----

*Off-Balance      Sheet Arrangements:*

*Contractual      Obligations:*

| **Payments                Due By****Period** |   | **Long-Term****Debt      ** | **Purchase ****Obligations** | **Operating****Leases   ** | **Interest   ****Expense   ** | **Pension     ****Contributions** |   | **Total        ****Contractual  **** Cash        **** Obligations  ** |
|----------------------------------------------|--------|-----------------------------------------------------------|-----------------------------------|-------------------------------------------|-------------------------------------------------------------|------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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                                                                                                                                                                         |

*Recent      Accounting Pronouncements:*

Index

----

*“*
* *

*Critical      Accounting Policies and Estimates:*

Index

----

*Forward-Looking      Statements; Factors That May Affect Future      Results:*

|   | · | 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                $4.1 million or an increase of 14.1% over the same period last                year; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | 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

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|   | ·             | 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.                                                                                                                                                                                             |

**Item      7A. *****Quantitative      and Qualitative Disclosure About Market Risks:***

Index

----

**Item      8.  *****Financial      Statements and Supplementary Data:***

|                                              | Page                                                                                                 |
|---------------------------------------------------|------------------------------------------------------------------------------------------------------|
| Consolidated                Financial Statements: |                                                                                                 |
|                                              | Management’s                Report on Internal Control Over                Financial Reporting | 25 |
|                                              | Reports                of Independent Registered Public                Accounting Firm               | 26 |
|                                              | Consolidated                Statement of                Operations                                   | 28 |
|                                              | Consolidated                Balance                Sheet                                             | 29 |
|                                              | Consolidated                Statement of Cash                Flows                                   | 30 |
|                                              | Consolidated                Statement of Shareholders’                Equity                   | 31 |
|                                              | Consolidated                Business Segment                Data                                     | 32 |
|                                              | Notes                to Consolidated Financial                Statements                             | 33 |
|                                              |                                                                                                 |   |
| Supplementary                Data:                |                                                                                                 |
|                                              | Quarterly                Financial Data                                                              | 54 |

Index

----

**MANAGEMENT’S      REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

*Internal      Control-Integrated Framework *

|   |                                                 |
|--------|------------------------------------------------------|
|   | /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

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM**

*Internal      Control-Integrated Framework*

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

Index

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM**

*Management’s      Report on Internal Control Over Financial Reporting*
*Internal      Control-Integrated Framework*

*Internal      Control-Integrated Framework*
*Internal Control-Integrated Framework*

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

Index

----

**MET-PRO            CORPORATION**

**CONSOLIDATED      STATEMENT OF      OPERATIONS**

|                                                       |   | **                    Years ended January 31,** |
|------------------------------------------------------------|--------|---------------------------------------------------------------------|
|                                                       |   | **2007     **                              |   | **2006     ** |   | **2005     ** |   |
| **Net                sales**                               |   | $91,411,114                                                         |   | $85,116,100 |   | $72,116,289 |   |
| Cost                of goods sold                          |   | 62,901,830                                                          |   | 58,441,441 |   | 49,441,456 |   |
| Gross                profit                                |   | 28,509,284                                                          |   | 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                      |   | 10,151,142                                                          |   | 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                         |   | 10,732,580                                                          |   | 10,022,151 |   | 7,294,970 |   |
|                                                       |   |                                                                |   |   |   |   |   |
| Provision                for taxes                         |   | 3,541,751                                                           |   | 2,708,867 |   | 2,480,291 |   |
| **Net                income**                              |   | $7,190,829                                                          |   | $7,313,284 |   | $4,814,679 |   |
|                                                       |   |                                                                |   |   |   |   |   |
| **Earnings                per share**                      |   |                                                                |   |   |   |   |   |
| Basic                (adjusted for stock split)            |   | $.64                                                                |   | $.65 |   | $.43 |   |
| Diluted                (adjusted for stock split)          |   | $.63                                                                |   | $.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

----

**MET-PRO        CORPORATION**

**CONSOLIDATED      BALANCE      SHEET**

|   | **January                31,** |   |
|--------|--------------------------------|--------|

| **ASSETS**                                                               | **2007     ** |   | **2006     ** |   |
|--------------------------------------------------------------------------|----------------------------------------|--------|----------------------------------------|--------|
| Current                assets                                            |                                   |   |                                   |   |
| 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                       | 20,837,589                             |   | 17,909,727                             |   |
| Inventories                                                              | 19,296,279                             |   | 16,438,481                             |   |
| Prepaid                expenses, deposits and other current assets       | 1,748,130                              |   | 1,381,900                              |   |
| Total                current assets                                      | 59,228,282                             |   | 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**                                          | $97,166,586                            |   | $89,071,391                            |   |

| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**          |        |   |        |   |
|------------------------------------------------------------------------|-------------|--------|-------------|--------|
| Current                liabilities                                     |        |   |        |   |
| Current                portion of long-term debt                       | $1,955,202  |   | $1,689,413  |   |
| Accounts                payable                                        | 6,450,813   |   | 5,900,281   |   |
| Accrued                salaries, wages and expenses                    | 4,135,342   |   | 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                               | 14,525,297  |   | 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                                       | 24,589,429  |   | 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                                       | 74,921,913  |   | 70,645,717  |   |
| Accumulated                other comprehensive (loss)                  | (33,471     | )      | (321,821    | )      |
| Treasury                shares, at cost                                | (11,506,654 | )      | (11,634,499 | )      |
| Total                shareholders’ equity                        | 72,577,157  |   | 67,538,238  |   |
| **Total                liabilities and shareholders’ equity**    | $97,166,586 |   | $89,071,391 |   |

Index

----

**MET-PRO        CORPORATION**

**CONSOLIDATED      STATEMENT OF CASH      FLOWS**

|   | **                         Years ended January 31,** |   |
|--------|---------------------------------------------------------------------------------------------------|--------|
|   | **2007     **                                                            |   | **2006     ** |   | **2005      ** |   |

**INCREASE      (DECREASE) IN CASH AND CASH EQUIVALENTS**

| **Cash                flows from operating activities**                      |        |   |        |   |        |   |
|------------------------------------------------------------------------------|-------------|--------|-------------|--------|-------------|--------|
| Net                income                                                    | $7,190,829  |   | $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                                           | (2,681,106  | )      | (4,428,817  | )      | 3,080,432   |   |
| Inventories                                                                  | (2,736,540  | )      | (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                         | 416,812     |   | 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

----

**MET-PRO        CORPORATION**

**CONSOLIDATED      STATEMENT OF SHAREHOLDERS’EQUITY**

|                                                           |                         |                                      |   |                           |   | **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                                  | -                            | -                                         |   | 7,190,829                      |   | -                                                                     |                                     | -            |       |        |   |
| 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                  |                         |                                      |   |                           |   |                                                                  |                                     |         |       | 7,479,179   |   |
|                                                           |                         |                                      |   |                           |   |                                                                  |                                     |         |       |        |   |
| 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**              | $1,284,661                   | $7,910,708                                |   | $74,921,913                    |   | ($33,471                                                              | )                                        | ($11,506,654 | )          | $72,577,157 |   |

Index

----

**MET-PRO              CORPORATION**

**CONSOLIDATED      BUSINESS SEGMENT DATA**

|   | **                         Years ended January 31,** |   |
|--------|---------------------------------------------------------------------------------------------------|--------|

|                                                           | **2007     ** | **                   2006     ** | **2005     ** |
|----------------------------------------------------------------|----------------------------------------|--------------------------------------------------------------------------|----------------------------------------|
| **Net                sales to unaffiliated customers**         |                                   |                                                                     |                                   |
| Product                recovery/pollution control technologies | $46,712,811                            | $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                             |
|                                                           | $91,411,114                            | $85,116,100                                                              | $72,116,289                            |
|                                                           |                                   |                                                                     |                                   |
| **Includes                foreign sales of:**                  |                                   |                                                                     |                                   |
| Product                recovery/pollution control technologies | $9,163,071                             | $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                              |
|                                                           | $23,164,931                            | $21,009,949                                                              | $15,452,129                            |
|                                                           |                                   |                                                                     |                                   |
| **Income                from operations**                      |                                   |                                                                     |                                   |
| Product                recovery/pollution control technologies | $4,733,862                             | $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                              |
|                                                           | $10,151,142                            | $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 | $35,332,252                            | $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                             |
|                                                           | 77,514,310                             | 68,835,112                                                               | 61,338,813                             |
| Corporate                                                      | 19,652,276                             | 20,236,279                                                               | 19,192,318                             |
|                                                           | $97,166,586                            | $89,071,391                                                              | $80,531,131                            |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

| **NOTE              1:** | **NATURE              OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                     | *Nature                of operations:*The                Company manufactures and sells product recovery and pollution control                equipment for purification of air and liquids, and fluid handling                equipment for corrosive, abrasive and high temperature liquids. The                Company has two reporting segments; Product Recovery/Pollution Control                Technologies and Fluid Handling Technologies, and one other segment                (Filtration/Purification Technologies).*Basis                of presentation:*The                consolidated financial statements include the accounts of Met-Pro                Corporation (“Met-Pro” or the “Company”) and its wholly-owned                subsidiaries, Mefiag B.V., Flex-Kleen Canada Inc., Strobic Air                Corporation, MPC Inc., Pristine Water Solutions Inc., Mefiag (Guangzhou)                Filter Systems Ltd. and Met-Pro (Hong Kong) Company Limited. Significant                intercompany accounts and transactions have been eliminated. *Use                of estimates:*The                preparation of financial statements in conformity with generally                accepted                accounting principles requires management to make estimates and                assumptions that affect the reported amounts of assets and liabilities                and                disclosure of contingent assets and liabilities at the date of the                financial statements and the reported amounts of revenues and expenses                during the reporting period. Actual results could differ from those                estimates.*Foreign                currency translation:*Assets                and liabilities of the Company’s foreign subsidiaries are translated at                current exchange rates, while income and expenses are translated                at                average rates for the period. Translation gains and losses are reported                as                a component of accumulated other comprehensive income in the Statement                of                Shareholders’ Equity.*Marketable                securities:*All                of our marketable securities are classified as available-for-sale.                Available-for-sale securities are carried at fair value, with the                unrealized gains and losses, net of any related tax effect, reported                as a                component of accumulated other comprehensive income in the Statement                of                Shareholders’ Equity. Realized gains and losses and declines in value                judged to be other-than-temporary on available-for-sale securities                are                included in other income, net.*Inventories:*Inventories                are stated at the lower of cost (principally first-in, first-out)                or                market except for the inventory at the Dean Pump Division which is                determined on the last-in, first-out basis (see Note 3).*Property,                plant and equipment:*Property,                plant and equipment are stated at cost, net of accumulated depreciation.                Expenditures for maintenance and repairs are charged to expense as                incurred. Renewals and betterments are capitalized (see Note 4).                For                financial reporting purposes, provisions for depreciation are calculated                on a straight-line basis over the following estimated useful lives                of the                assets: |

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

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|   | The                carrying amount of all long-lived assets is evaluated periodically                to                determine if adjustment to the depreciation period or the non-depreciated                balance is warranted. Based upon its most recent analysis, the Company                believes that no impairment of property, plant and equipment exists                as of                January 31, 2007.*Costs                in excess of net assets of businesses acquired:*In                June 2001, the Financial Accounting Standards Board (“FASB”) issued                Statement of Financial Accounting Standards (“SFAS”) No. 141, “Business                Combinations”, and SFAS No. 142, “Goodwill and Other Intangible Assets”.                SFAS No. 141, which was effective for business combinations completed                after June 30, 2001, requires, among other things, that (1) the purchase                method of accounting be used for all business combinations, (2) specific                criteria be established for the recognition of intangible assets                separately from goodwill and (3) additional information about acquired                intangible assets be provided. SFAS No. 142, which became effective                for                the Company as of February 1, 2002, primarily addresses the accounting                for                goodwill and intangible assets subsequent to their acquisition. Among                other things it requires that goodwill not be amortized for financial                statement purposes; instead, management is required to test goodwill                for                impairment at least annually. The Company performed its annual impairment                test for each reporting unit in the fourth quarter of the fiscal                year                ended January 31, 2007 using a fair value approach. The                test for goodwill impairment involves significant judgment in estimating                projections of fair value generated through future performance of                each of                the reporting units which comprise our operating segments. In calculating                the fair value of the reporting units using the present value of                estimated                future cash flows method, we rely on a number of assumptions including                sales and related gross margin projections, operating margins, anticipated                working capital requirements and market rate of returns used in                discounting projected cash flows. These assumptions were based upon                the                outlook of markets and industries, our business plans and historical                data.                Inherent uncertainties exist in determining and applying such factors.                The                discount rate used in the projection of fair value represents a weighted                average cost of capital applicable to Met-Pro Corporation.No                impairment was present upon performing this test, since the fair                value of each reporting unit exceeded its carrying value, including                goodwill.** **At                January 31, 2007, costs in excess of net assets of businesses acquired                associated with the Company’s two reporting segments and one other segment                totaled $20,798,913. The                changes in the carrying amount of costs in excess of net assets of                businesses acquired by the two reporting segments and one other segment                for the fiscal year ended January 31, 2007 are as                follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

|    | **Product****Recovery/Pollution****Control                Technologies** | **Fluid                Handling Technologies** | **Filtration/****Purification                Technologies** | **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 |   |

|   | *Revenue                recognition:*The                Company recognizes revenues from product sales or services provided                when                the following revenue recognition criteria are met: persuasive evidence                of                an arrangement exists, delivery has occurred or services have been                rendered, the selling price is fixed or determinable and collectibility                is                reasonably assured. The Securities and Exchange Commission’s Staff                Accounting Bulletin (“SAB”) No. 104, “Revenue Recognition”, provides                guidance on the application of generally accepted accounting principles                to                selected revenue recognition issues. The Company has concluded that                its                revenue recognition policy is appropriate and in accordance with                generally                accepted accounting principles and SAB No. 104.*Advertising*:Advertising                costs are charged to operations in the year incurred and were $933,957,                $1,259,192 and $1,307,722 for the years ended January 31, 2007, 2006                and                2005, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|   | *Research                and development:*Research                and development costs are charged to operations in the year incurred                and                were $2,291,262, $1,951,829, and $2,225,859 for the years ended January                31, 2007, 2006, and 2005, respectively.*Stock-based                compensation:*Effective                February 1, 2006, the Company began accounting for share-based                compensation under the provisions of Statement of Financial Accounting                Standards (“SFAS”) No. 123(R), “Share-Based Payment,” which requires                the recognition of the fair value of share-based compensation. Under                the                fair value recognition provisions for SFAS No. 123(R), share-based                compensation is estimated at the grant date based on the fair value                of the                awards expected to vest and recognized as expense ratably over the                requisite service period of the award. The Company has used the                Black-Scholes valuation model to estimate fair value of share-based                awards, which requires various assumptions including estimating stock                price volatility, forfeiture rates and expected life. *Earnings                per share:*Basic                earnings per share are computed based on the weighted average number                of                common shares outstanding during each year.Diluted                earnings per share are computed based on the weighted average number                of                shares outstanding plus all potential dilutive common shares outstanding                (stock options) during each year.Basic                and diluted earnings per share have been restated to reflect the                effect of                the four-for-three stock split, which was effective November 15,                2005.*Dividends*:On                December 15, 2006, the Board of Directors declared a $.0675 per share                quarterly cash dividend payable on March 14, 2007 to shareholders                of                record on February 28, 2007, amounting to an aggregate of                $757,029.*Stock                splits*:On                October 10, 2005, the Company’s Board of Directors declared a                four-for-three stock split, effective in the form of a stock distribution,                which was paid on November 15, 2005 to shareholders of record on                November                1, 2005. The Company retained the current par value of $.10 per share                for                all common shares. All references in the financial statements and                notes to                the number of shares outstanding, per share amounts, and stock option                data                of the Company’s common shares have been restated to reflect the effect of                the stock split for all periods presented.Shareholders’                equity reflects the stock split by reclassifying from “Additional Paid-in                Capital” to “Common Shares” an amount equal to the par value of the                additional shares arising from the split.*Concentrations                of credit risk:*Financial                instruments which potentially subject the Company to concentrations                of                credit risk consist of cash and cash equivalents (see Note 2), and                trade                accounts receivable. The Company believes concentrations of accounts                receivable credit risk are limited due to the number of customers,                and                dispersion among the operating segments and geographic areas. It                is the                policy of management to review the outstanding accounts receivable                balance                at the end of each reporting period, as well as the bad debt write-offs                experienced in the past, and establish an allowance for doubtful                accounts                for uncollectable amounts. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|   | *Supplemental              cash flow information:* |
|--------|----------------------------------------------------|

|   |                                                                                                                   |                       |   |                       |   |                       |   |
|--------|------------------------------------------------------------------------------------------------------------------------|----------------------------|--------|----------------------------|--------|----------------------------|--------|
|   |                                                                                                                   | **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                  |   |

|   | *Recent                accounting pronouncements:*In                March 2005, the FASB issued FASB Interpretation (“FIN”) No. 47,                “Accounting for Conditional Asset Retirement Obligations”. FIN No. 47                requires an entity to recognize a liability for a conditional asset                retirement obligation when incurred if the liability can be reasonably                estimated. The Interpretation also clarifies that the term Conditional                Asset Retirement Obligation refers to a legal obligation to perform                an                asset retirement activity in which the timing and/or method of settlement                are conditional on a future event that may or may not be within the                control of the entity. FIN No. 47 also clarifies when an entity would                have                sufficient information to reasonably estimate the fair value of an                asset                retirement obligation. FIN No. 47 was effective for the Company with                its                fiscal year ended January 31, 2006. FIN No. 47 has not had a material                impact on our financial position, results of operations or cash                flows.In                May 2005, the FASB issued SFAS No. 154, “Accounting Changes and Error                Corrections”, which replaces APB No. 20, “Accounting Changes,” and SFAS                No. 3, “Reporting Accounting Changes in Interim Financial Statements”.                SFAS No. 154 changes the requirements for accounting and reporting                a                change in accounting principle, and applies to all voluntary changes                in                accounting principles, as well as changes required by an accounting                pronouncement in the unusual instance it does not include specific                transition provisions. Specifically, SFAS No. 154 requires retrospective                application to prior periods’ financial statements, unless it is                impracticable to determine the period specific effects or the cumulative                effect of the change. When it is impracticable to determine the effects                of                the change, the new accounting principle must be applied to the balances                of assets and liabilities as of the beginning of the earliest period                for                which retrospective application is practicable and a corresponding                adjustment must be made to the opening balance of retained earnings                for                that period rather than being reported in an income statement. When                it is                impracticable to determine the cumulative effect of the change, the                new                principle must be applied as if it were adopted prospectively from                the                earliest date practicable. SFAS No. 154 is effective for accounting                changes and corrections of errors made in fiscal years beginning                after                December 15, 2005. SFAS No. 154 does not change the transition provisions                of any existing pronouncements. SFAS No. 154 has not had a material                impact                on our financial position, results of operations or cash                flows.In                July 2006, the FASB issued FIN No. 48, “Accounting for Uncertainty in                Income Taxes - An Interpretation of SFAS No. 109”. FIN No.                48 clarifies the accounting for uncertainty in income taxes recognized                in                an enterprise’s financial statements in accordance with                SFAS No. 109, “Accounting for Income Taxes.” FIN No. 48                also prescribes a recognition threshold and measurement attribute                for the                financial statement recognition and measurement of a tax position                taken or                expected to be taken in a tax return. In addition, FIN No. 48                provides guidance on derecognition, classification, interest and                penalties, accounting in interim periods, disclosure and transition.                The                provisions of FIN No. 48 are to be applied to all tax positions upon                initial adoption of this standard. Only tax positions that meet the                more-likely-than-not recognition threshold at the effective date                may be                recognized or continue to be recognized as an adjustment to the opening                balance of retained earnings (or other appropriate components of                equity)                for that fiscal year. The provisions of FIN No. 48 are effective for                fiscal years beginning after December 15, 2006. The Company is                evaluating the impact of the adoption of FIN No. 48 but does not                currently expect the adoption of this new standard to have a material                impact on our financial position, results of operations or cash                flows.In                September 2006, the Securities and Exchange Commission (“SEC”) issued                Staff Accounting Bulletin (“SAB”) 108, to address diversity in practice in                quantifying financial statement misstatements. SAB 108 requires that                the                Company quantify misstatements based on their impact on each of its                financial statements and related disclosures. SAB 108 is effective                for                fiscal years ending after November 15, 2006. The Company has adopted                SAB 108 effective as of January 31, 2007. The adoption of this                bulletin did not have a material impact on our financial position,                results                of operations or                cash flows. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|   | In                September 2006, the FASB issued SFAS No. 157, “Fair Value                Measurements”. SFAS No. 157 provides guidance for using fair value to                measure assets and liabilities. It also responds to investors’ requests                for expanded information about the extent to which companies’ measure                assets and liabilities at fair value, the information used to measure                fair                value, and the effect of fair value measurements on earnings. SFAS                No. 157 applies whenever other standards require (or permit) assets                or liabilities to be measured at fair value, and does not expand                the use                of fair value in any new circumstances. SFAS No. 157 is effective for                financial statements issued for fiscal years beginning after                November 15, 2007 and is required to be adopted by the Company in the                first quarter of fiscal 2009. The Company is currently evaluating                the                effect that the adoption of SFAS No. 157 will have on our financial                position, results of operations or                cash flows.In                September 2006, the FASB issued SFAS No. 158, *“*Employers’                Accounting for Defined Benefit Pension and Other Postretirement Plans,                an                amendment of FASB Statements No. 87, 88, 106 and 132(R)”.                * *SFAS                No. 158 requires that we recognize the overfunded or underfunded                status of                our pension plans (the Plans) as an asset or liability in the fiscal                year                ended January 31, 2007 consolidated balance sheet, with changes in                the                funded status recognized through other comprehensive income in the                year in                which they occur. SFAS No. 158 also requires us to measure the funded                status of the Plans as of the year end consolidated balance sheet                date not                later than December 31, 2008. The impact of adopting SFAS No. 158                resulted in an increase in the pension liabilities and an increase                in                accumulated other comprehensive loss of approximately $0.3 million,                prior                to any deferred tax adjustment.*Reclassifications:*The                Company reclassified the non-current pension liabilities that were                included in the current liabilities section under the heading “accrued                salaries, wages and expenses” to other non-current liabilities, and the                related deferred income taxes from current to non-current in accordance                with FASB No. 158 for all fiscal years presented in this Annual Report                on                Form 10-K. The effect of the reclassification of the pension liabilities                will be to reduce current liabilities and increase non-current liabilities                by $3,006,842 at January 31, 2006. In                addition, the reclassification of the related deferred income taxes                resulted in a reduction of deferred income taxes in the current asset                section by $591,534, an increase in deferred income taxes in the                current                liabilities section by $226,048 and a decrease in deferred income                taxes in                the non-current liabilities section by $817,582 at January 31, 2006.                As a                result of these reclassifications, the total assets decreased by                $591,534                at January 31, 2006. These reclassifications had no effect upon the                Company’s consolidated statements of operations, shareholders’ equity or                cash flows for any of the affected periods. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

| **NOTE              2:**   | **FAIR              VALUE OF FINANCIAL INSTRUMENTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                   |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                   |   |
|                       | *Cash                and cash equivalents:*Short-term                investments at January 31, 2007 and 2006 were valued at cost                (approximating market) and amounted to $17,322,194 and $17,683,305,                respectively. Short-term investments consist principally of certificate                of                deposits with an original maturity of three months or less, and money                market funds, both of which are considered to be cash equivalents.                The                Company evaluates the creditworthiness of the financial institutions                and                financial instruments in which it invests.*Marketable                securities:*At                January 31, 2007, the Company's marketable securities had a fair                market                value of $24,090, which includes an unrealized gain of $2,270. The                marketable securities are composed of 547 shares of Armstrong World                Industries, Inc. (“AWI”) distributed to Met-Pro as part of a Chapter 11                reorganization settlement in October of 2006. *Debt:*The                fair value and carrying amount of long-term debt was as                follows: |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                   |   |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **January                31,**         |   |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **2007     ** |   | **2006     ** |   |
|                       | Fair                value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $7,371,688                             |   | $4,412,956 |   |
|                       | Carrying                amount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 7,373,192                              |   | 4,412,999 |   |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                   |   |   |   |
|                       | Valuations                for long-term debt are determined based on borrowing rates currently                available to the Company for loans with similar terms and                maturities.The                Company uses interest rate swaps (see Note 5) to minimize its exposure                to                fluctuations in interest rates. The interest rate differential to                be paid                or received under these agreements is recognized over the term of                the loan                and is included in interest expense.The                Company’s financial instruments are not held for trading                purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **NOTE                3:** | **INVENTORIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                       | Inventories              consisted of the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

|                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **                 January 31,**  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|--------|
|                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **2007     ** |   | **2006     ** |   |
|                                                                                                                                             | Raw                materials                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | $13,596,396                            |   | $9,116,168 |   |
|                                                                                                                                             | Work                in process                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2,365,479                              |   | 2,334,589 |   |
|                          | Finished                goods                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 3,334,404                              |   | 4,987,724 |   |
|                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $19,296,279                            |   | $16,438,481 |   |
|                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                   |   |   |   |
|                                                                                                                                             | At                January 31, 2007 and 2006, inventories valued at the last-in, first-out                method (“LIFO”) were $2,927,376 and $2,814,882, respectively. The LIFO                value of inventories was lower than replacement cost by $1,468,627                and                $1,063,758 at January 31, 2007 and 2006, respectively.The                book basis of LIFO inventories exceeded the tax basis by approximately                $983,000 at both January 31, 2007 and 2006, as a result of applying                the                provisions of Accounting Principles Board Opinion No. 16, “Business                Combinations”, to an acquisition completed in a prior                year. |
|                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

| **NOTE                4: ** | **PROPERTY,              PLANT AND EQUIPMENT**                         |
|----------------------------------|------------------------------------------------------------------------|
|                             |                                                                   |
|                             | Property,              plant and equipment consisted of the following: |
|                             |                                                                   |

|   |                                         | **                   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 |   |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The                  construction in progress amounting to $3,210,341 at the fiscal                  year ended                  January 31, 2006 is partially due to an expansion of the Telford,                  Pennsylvania facility, in which the Company incurred costs of $1,827,943.                  In addition, part of the construction in progress balance was due                  to an                  expansion of our Mefiag B.V. facility in Heerenveen, The Netherlands,                  in                  which the Company incurred costs of $1,063,123 in the fiscal year                  ended                  January 31, 2006. Depreciation                  of property, plant and equipment charged to operations amounted                  to                  $1,569,973, $1,455,618, and $1,459,116 for the fiscal years ended                  in 2007,                  2006 and 2005, respectively.During                  the second quarter of fiscal year 2007, the Company listed for                  sale, its                  30,000 square foot building located on four acres in Hauppauge,                  Long                  Island, New York, previously occupied by the Sethco business unit,                  at an                  asking price of $4,950,000. The net book value of the land and                  building                  amounted to $812,756 as of January 31, 2007, and is included in                  the                  property, plant and equipment, net, section of the consolidated                  balance                  sheet. Effective May 1, 2006, the Company discontinued depreciating                  the                  unused Sethco facility. |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

| **NOTE                  5: ** | **DEBT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                               | The                  Company and its subsidiaries have domestic and foreign unsecured                  lines of                  credit totaling $5,000,000 which can be used for working capital.                  As of                  January 31, 2007, the Company’s Mefiag B.V. subsidiary borrowed $391,020                  (300,000 Euro) from its available line of credit, which is included                  in the                  table below.Short-term                  and long-term debt consisted of the following: |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

|   |                                                       | **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                                   |   |

|   |                                                                                                                                                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The                notes payable and bond payable are subject to certain covenants,                including                maintenance of prescribed amounts of leverage and fixed charge coverage                ratios. |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|   | The                Company has two separate interest rate swap agreements to hedge against                the potential impact on earnings from increases in market interest                rates.                Effective October 29, 1998, the Company entered into a ten-year interest                rate swap agreement for a notional amount equal to the balance on                the note                payable maturing October 2008. The Company swapped the ninety day                LIBOR                for a fixed rate of 5.23%. As a result, the effective fixed interest                rate                is 5.98%. Effective April 3, 2006, the Company entered into a fifteen-year                interest rate swap agreement for a notional amount equal to the balance                on                the bond payable maturing April 2021. The Company swapped the ninety                day                LIBOR for a fixed rate of 4.87%. As a result, the effective fixed                interest                rate is 4.71%. These interest rate swap agreements are accounted                for as                fair value hedges that qualify for treatment under the short-cut                method of                measuring effectiveness in accordance with SFAS No. 133, “Accounting for                Derivative Instruments and Hedging Activities” as amended by SFAS 138,                “Accounting for Certain Derivative Instruments and Hedging Activities                - an                Amendment to FASB Statement No. 133”. There was no hedge ineffectiveness                as of January 31, 2007. The fair value of the interest rate swap                agreements resulted in a decrease in equity of $48,425 (net of tax)                at                January 31, 2007 and a decrease in equity of $12,385 (net of tax)                at                January 31, 2006. These results are recorded in the accumulated other                comprehensive loss section of shareholders’ equity.  Maturities                of short-term and long-term debt are as follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

| **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**                                                                                 |
|                             |                                                                                                                                  |
|                             | Accumulated              other comprehensive income/(loss) as of January 31 was comprised of              the              following: |
|                             |                                                                                                                                  |

|   |                                                                        | **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**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                             | On                December 15, 2000, the Company announced a 533,333 (adjusted for                stock                splits) share stock repurchase program, which began after the Company’s                February 21, 2000 stock repurchase program was completed. During                the                fiscal year ended January 31, 2006, the Company repurchased 12,548                Common                Shares at a cost of $140,135. At January 31, 2007, the Company had                the                authority to repurchase an additional 270,918 shares under the December                15, 2000 stock repurchase program. |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

**       **
|                             | The                Company has a Shareholders’ Rights Plan, under which the Company’s Board                of Directors declared a dividend of one Right for each Common Share                owned.                The Plan provides, under certain conditions involving acquisition                of the                Company’s Common Shares, that holders of Rights, except for the acquiring                entity, would be entitled to purchase Common Shares of the Company,                or                acquiring company, having a value of twice the Rights’ exercise price. The                Rights under the Plan expire in 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **NOTE                8: ** | **STOCK-BASED              COMPENSATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                             | Stock                options:Effective                February 1, 2006, the Company adopted SFAS No. 123(R), "Share-Based                Payment," which revised SFAS No. 123, "Accounting for Stock-Based                Compensation," and superseded APB No. 25, "Accounting for Stock Issued                to                Employees". Prior to February 1, 2006, the Company accounted for                stock-based compensation under the provisions of APB No. 25 and related                interpretations. Accordingly, no compensation expense related to                granting                of stock options had been recognized in the financial statements                prior to                adoption of SFAS No. 123(R) for stock options that were granted,                as the                grant price equaled the market price on the date of grant. The                Company has adopted SFAS No. 123(R) using the modified prospective                method,                and accordingly the financial statement amounts for the prior periods                presented in this Annual Report on Form 10-K have not been restated                to                reflect the fair value method of expensing share-based compensation.                Under                this transition method, compensation cost recognized in the fiscal                year                ended January 31, 2007 includes compensation cost for all share-based                payments granted prior to, but not vested as of February 1, 2006                and                shared-based payments granted after February 1, 2006.For                the fiscal year ended January 31, 2007, the impact of the adoption                of SFAS                No. 123(R) as compared to if the Company had continued to account                for                share-based compensation under APB Opinion No. 25 is as follows:                an                increase in general and administrative expense by $327,200; a reduction                in                net income by $219,224; and a reduction in basic and diluted earnings                per                share by $0.02. SFAS No. 123(R) requires the Company to estimate                forfeitures in calculating the compensation expense instead of recognizing                these forfeitures and the resulting reduction in compensation expense                as                they occur. As of February 1, 2006, the cumulative after-tax effect                of                this change in accounting for forfeitures reduced stock-based compensation                by $17,085. The estimate of forfeitures will be adjusted over the                vesting                period to the extent that actual forfeitures differ, or are expected                to                differ, from such estimates. The adoption of this standard had no                impact                on net cash flows and results in the reclassification on the consolidated                cash flows statement of related tax benefits from cash flows from                operating activities to cash flows from financing activities to the                extent                these tax benefits exceeded the associated compensation cost recognized                in                the income statement.On                December 15, 2006, the Company issued 179,000 stock options, with                one-third exercisable one year from the grant date and the remaining                two-thirds vesting two and three years from grant date, respectively.                Previous options granted by the Company became exercisable with one-third                exercisable as of the date of grant and the remaining two-thirds                vesting                over a two year period. In the event of a “change of control”, any                unvested portion of the option shall become immediately exercisable.                The                Company’s present practice is that the duration of options is for up to                ten years from the date of grant, subject to earlier termination                under                various conditions. The fair value of each option is amortized into                compensation expense on a straight-line basis over its respective                vesting period, net of estimated forfeitures. The fair value of options                was estimated at the grant date using the Black-Scholes option valuation                model. The per share weighted-average fair value at the date of grant                for                stock options granted during the fiscal year ended January 31, 2007                was                $4.03 per option. The application of this valuation model relies                on the                following assumptions that are judgmental and sensitive in the                determination of the compensation                expense: |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|                                   | 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% |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Historical                  information was the principal basis for the selection of the expected                  term                  and dividend yield. The expected volatility is based on a weighted-average                  combination of historical and implied volatilities over a time                  period that                  approximates the expected term of the option. The risk-free interest                  rate                  was selected based upon the U.S. Treasury Bill rates in effect                  at the time                  of grant for the expected term of the option. The                    following table summarizes stock option transactions for the                    fiscal year                    ended January 31, 2007: |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

|   |     |                                           |                                       |                          | 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    |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The                aggregate intrinsic value of options exercised during the fiscal                years                ended January 31, 2007, 2006 and 2005 was $92,085, $227,797 and $557,135,                respectively. The intrinsic value of stock options is the amount                by which                the market price of the stock on a given date, such as at the end of                the period or on the day of exercise, exceeded the market price of                stock                on the date of grant. The                following table summarizes information about the options outstanding                and                options exercisable as of January 31, 2007: |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

|   |                            |    | 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 |   |
|   |                            |    |                                                 |                            |                               |   |   |   |   |   |   |   |   |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|   | As                of January 31, 2007, there was $924,474 of total unrecognized compensation                cost related to non-vested share-based compensation arrangements                granted                under the plans. The cost is expected to be recognized over a                weighted-average period of 2.1 years. The                following table provides the pro-forma net income and earnings per                share                for the fiscal year ended January 31, 2006 and 2005 as if compensation                cost for stock-based employee compensation was determined as of the                grant                date under the fair value method of SFAS No. 123, "Accounting for                Stock-Based Compensation," as amended by SFAS No. 148. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|   |                                        | **January                31,**                                   |     | **January                31,**                         |     |   |
|--------|---------------------------------------------|------------------------------------------------------------------|----------|--------------------------------------------------------|----------|--------|
|   |                                        | **2006                     **           |     | **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      |   |   |

|   |                                                                                                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | For                the purposes of this pro-forma disclosure, the fair value of the                options                at the date of grant was estimated using the Black-Scholes option-pricing                model. |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

| **NOTE                9: ** | **INCOME              TAXES**                                               |
|----------------------------------|-----------------------------------------------------------------------------|
|                             |                                                                        |
|                             | The              provision for income taxes was comprised of the following: |
|                             |                                                                        |

|   |     | **2007     ** | **2006                    ** | **2005     ** |   |
|--------|----------|----------------------------------------|--------------------------------------------------|----------------------------------------|--------|
|   | Current  |                                   |                                             |                                   |   |
|   | Federal  | $2,998,574                             | $1,601,149                                       | $1,501,388                             |   |
|   | State    | 425,314                                | 236,709                                          | 240,048                                |   |
|   | Foreign  | 91,660                                 | 260,416                                          | 227,630                                |   |
|   |     | 3,515,548                              | 2,098,274                                        | 1,969,066                              |   |
|   | Deferred | 26,203                                 | 610,593                                          | 511,225                                |   |
|   |     | $3,541,751                             | $2,708,867                                       | $2,480,291                             |   |

|   |                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Deferred                income taxes reflect the net tax effect of temporary differences                between                the carrying amounts of assets and liabilities for financial reporting                purposes and the amounts used for income tax purposes. Significant                components of the net deferred tax assets (liabilities) were as                follows: |
|   |                                                                                                                                                                                                                                                                                                                                                                                           |

|   |                                          | **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                      | )      |   |

|   |                                                                                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | A              reconciliation of the federal statutory rate and the Company’s effective              tax rate is presented as follows:** ** |
|   |                                                                                                                                                   |

|   |                                   | **2007**   | **2006** | **2005** |   |       |
|--------|----------------------------------------|------------|----------|----------|--------|------------|
|   | Computed                expected       |       |     |     |   |       |   |   |   |   |   |   |   |   |
|   | federal                tax expense     | $3,649,077 |     | 34.0     | %      | $3,407,531 |   | 34.0 | % | $2,480,291 |   | 34.0 | % |   |
|   | State                income taxes,     |       |     |     |   |       |   |   |   |   |   |   |   |   |
|   | net                of federal          |       |     |     |   |       |   |   |   |   |   |   |   |   |
|   | income                tax benefit      | 280,707    |     | 2.6      |   | 156,228    |   | 1.5 |   | 158,432 |   | 2.2 |   |   |
|   | Research                and            |       |     |     |   |       |   |   |   |   |   |   |   |   |
|   | development                tax credits | (136,500   | )        | (1.3     | )      | (591,517   | ) | (5.9 | ) | - |   | - |   |   |
|   | Other                                  | (251,533   | )        | (2.3     | )      | (263,375   | ) | (2.6 | ) | (158,432 | ) | (2.2 | ) |   |
|   | Effective                income taxes  | $3,541,751 |     | 33.0     | %      | $2,708,867 |   | 27.0 | % | $2,480,291 |   | 34.0 | % |   |

|   |                                                                                                                                                                                                                                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The              research and development tax credits totaling $591,517 in the fiscal              year              ended January 31, 2006, includes $450,463 of research and development              tax              credits for the prior three fiscal years ended January 31,              2005. |
|   |                                                                                                                                                                                                                                                                                                   |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

| **NOTE                10: ** | **LEASES              AND OTHER COMMITMENTS**                                                                                                                                                                                                                                                                                                      |
|-----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              |                                                                                                                                                                                                                                                                                                                                               |
|                              | The                Company has various real estate operating leases for warehouse space                and                office space for sales, general and administrative purposes. Future                minimum lease payments under these non-cancelable operating leases                at                January 31, 2007 were as follows: |

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

|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              | Rental              expense for the above operating leases during the fiscal years ended              in              2007, 2006, and 2005 was $160,672, $174,995, and $266,884,              respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **NOTE                11: ** | **EMPLOYEE              BENEFIT PLANS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                              | *Pension                Plans:*The                Company has several defined benefit pension plans covering eligible                employees in the United States. The Company contributes amounts to                the                pension plans equal to the amounts that are tax deductible. In                the third quarter ended October 31, 2006, the Company amended its                defined                benefit pension plans to freeze the accrual of future benefits for                all its                salaried and non-union hourly employees, effective on December 31,                2006,                which resulted in the Company recognizing a curtailment loss of                $234,180.As                of January 31, 2007, the Company adopted SFAS No. 158, which requires                the                recognition of the overfunded or underfunded status of its pension                plans                as an asset or liability, with changes in the funded status recognized                through other comprehensive income in the year they occur. The Company                recognized the liability for the funded status in its consolidated                balance                sheet. The Company plans to change the annual measurement date for                its                pension plans during the fiscal year ended January 31, 2008.On                October 31, 2006, the Company’s annual measurement date, the accumulated                benefit obligation related to the Company’s pension plans exceeded the                fair value of the pension plan assets (such excess is referred to                as an                unfunded accumulated benefit obligation). This difference is due                to the                decline in the market value of investments during the fiscal year                ended                January 31, 2003 combined with a reduction in the discount rate from                7.00%                to 5.75% between the fiscal years ended January 31, 2003 and 2006.                A                pension liability adjustment was recorded in the fourth quarter of                the                fiscal year ended January 31, 2007 as an increase to the pension                liability                with a corresponding increase to shareholders’ equity and a decrease in                intangible assets. During the fiscal year ended January 31, 2007,                the                Company recorded an after-tax increase to shareholders’ equity of $31,661                and a decrease to intangible assets of $690,887.Net                periodic pension cost (income) included the following                components: |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|   |                                                            | **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

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|   | The                following table sets forth the plans’ change in benefit obligations,                change in plan assets and amounts recognized on the Company’s consolidated                balance sheet at January 31, 2007 and 2006:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **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 | ) |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |
|   | Prior                to the adoption of SFAS No. 158, the Company would have recognized                a                reduction in the additional minimum pension liability of $402,903,                and a                corresponding increase to accumulated other comprehensive income                of                $275,671 (net of $127,232 in tax) in relation to the pension benefit                plans, as required by SFAS No. 87. The total additional minimum pension                liability recognized on the pension benefit plans prior to the adoption                of                SFAS No. 158 was $689,200. The effect of the adoption of SFAS No.                158 on                the consolidated balance sheet was as follows: |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **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                                                                          |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                             |   |   |
|   | The                accumulated benefit obligation, projected benefit obligation, and                fair                value of plan assets for plans with accumulated benefit obligations                in                excess of assets were $18,234,033, $18,512,657 and $15,182,042,                respectively, as of October 31, 2006, and $17,246,934, $19,031,679                and                $14,107,986, respectively, as of October 31, 2005. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|   | The              Company contributed $132,106 to the pension plans during the plan year              ended October 31, 2006 and expects an additional contribution of $99,300              during the Company’s fiscal year ending January 31, 2008.The                following benefit payments, as appropriate, are expected to be paid: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                              |

| **Year                Ending** |        |   |
|--------------------------------|-------------|--------|
| **January                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 |   |

|   |                                                                                                                                                 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Weighted              average assumptions used in accounting for benefit obligations for              the              fiscal year ended January 31: |
|   |                                                                                                                                                 |

|   |                                      | **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 |   |

|   |                                                                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Weighted              average assumptions used in accounting for net projected pension cost              for              the fiscal year ended January 31: |
|   |                                                                                                                                                        |

|   |                                      | **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 |   |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | In                selecting the expected long-term rate of return on asset assumption,                the                Company considered the average rate of earnings on the funds invested                or                to be invested to provide for the benefits of these plans. This included                considering the trust’s asset allocation and the expected returns likely                to be earned over the life of the plans. The                table below sets forth the target allocations and asset allocations                for                the plan as follows: |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

|   |                                              | **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

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, **
**2007,      2006 AND 2005**

|   | The                assets of the funds will be invested in a manner consistent with                the                safeguards and diversity to which a prudent investor would adhere                to and                undertake on the behalf of the plans’ participants. The main objective is                to obtain the highest possible return commensurate with the level                of                assumed risk and with an investment horizon sufficient to permit                market                cycles to be reasonably reflected.*Directors’                Benefit Plan:*The                Company provides a non-qualified pension plan for Directors which                is                presently unfunded. The Plan is designed to provide pension benefits                based                on the category of the Director and length of service. The aggregate                benefit obligation payable in the future under the terms of the plan                was                $744,966 and $750,697 at January 31, 2007 and 2006, respectively.                The                amounts applicable are included in the tables above. This plan was                discontinued in December 1999 as to non-vested Directors.*Defined                Contribution Plan:*The                Company has a 401(k) profit sharing plan in which all employees of                the                Company in the United States are eligible to participate, following                the                completion of one year of service and after attaining age 21. Pursuant                to                this plan, employees can contribute up to 25% of their compensation                to the                Plan. The Company will match, in the form of Met-Pro Common Shares,                up to                50% of the employee’s contribution up to 4% of compensation. Effective                January 1, 2007, the Company added a discretionary contribution to                the                Plan for non-bargaining unit employees in the United States in lieu                of the                Defined Benefit Plan, which was frozen on December 31, 2006 and                accelerated the eligibility to participate in the 401(k) profit sharing                plan from the completion of one year of service to six-months of                service.                The discretionary contribution is (i) 2% for employees under 45 years                old                or with less than 5 years of service, (ii) 3% for employees 45 years                or                older and between five to nine years of service, or (iii) 4% for                employees                45 years or older and with ten or more years of service. The levels                of                discretionary contribution will not change with the employee’s age or                years of service going forward and all future eligible new hires                after                April 15, 2006 will receive a discretionary contribution at the 2%                level.                The Company provided cash contributions to the 401(k) profit sharing                plan                of $257,688, $211,327, and $202,963 for the fiscal years ended January                31,                2007, 2006 and 2005, respectively.*Employees’                Stock Ownership Trust:*The                Company sponsors an employee stock ownership plan under which it                may make                discretionary contributions to the trust either in cash or in shares                of                the Company for salaried employees in the United States eligible                to                participate in the plan. There were no contributions to the Employees’                Stock Ownership Trust for the fiscal years ended in 2007, 2006 and                2005.                All shares are considered to be allocated to participants or to be                released for allocation to participants, and are included in the                earnings                per share computations.*Stock                Option Plans:*In                1997, the Board of Directors of the Company approved a stock option                plan                covering 350,000 shares (increased to 622,222 shares after giving                effect                to stock splits effective October 15, 2003 and November 15, 2005)                that was                approved by the Company’s shareholders at the 1997 meeting of shareholders                (the “1997 Plan”). In 2001, the Board of Directors of the Company approved                an equity incentive plan covering 350,000 shares (increased to 622,222                shares after giving effect to stock splits effective October 15,                2003 and                November 15, 2005) that was approved by the Company’s shareholders at the                2001 meeting of shareholders (the “2001 Plan”). In 2005, the Board of                Directors of the Company approved an equity incentive plan covering                500,000 shares (increased to 666,666 shares after giving effect to                a stock                split effective November 15, 2005) that was approved by the Company’s                shareholders at the 2005 meeting of shareholders (the “2005 Plan”). These                plans contain anti-dilution provisions that apply to stock splits                and                stock dividends declared by the Company. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

Index

----

**MET-PRO          CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|   | The              status of the plans was as follows (adjusted for stock              splits): |
|--------|-----------------------------------------------------------------------------------------------|
|   |                                                                                          |   |   |   |   |   |   |
|   | **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                    |   |   |   |
|   |                                                                                                                      |                 |   |                       |   |   |   |
|   | The              weighted average exercise prices of the Company’s stock option plans were              as follows: |
|   |                                                                                                                      |                 |   |                       |   |   |   |

|   |                                          | **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                              |   |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

| **NOTE                12: ** | **OTHER              INCOME, NET**                             |
|-----------------------------------|----------------------------------------------------------------|
|                              |                                                           |
|                              | Other              income, net was comprised of the following: |
|                              |                                                           |

|   |                                                | **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**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                              | During                the fiscal quarter ended October 31, 2006, management reviewed operating                segment aggregation in accordance with SFAS No. 131, “Disclosures                about Segments of an Enterprise and Related Information,”* *and                based upon changes beginning in February 2006 in the manner in which                management manages the Company, as well as the current economic                characteristics of its operating segments, management has determined                that                a revision of the aggregation of operating segments is appropriate.                Therefore, the segment discussion outlined below represents the adjusted                segment structure as determined by management in accordance with                SFAS No.                131. All prior year amounts related to these reporting segments have                been                restated to conform to the new reporting segment structure. The                Company has identified six operating segments and has aggregated                those                segments into two reportable segments as follows: Product                Recovery/Pollution Control Technologies and Fluid Handling Technologies                and one other segment (Filtration/Purification Technologies). The                Filtration/Purification Technologies segment is comprised of four                operating segments that do not presently meet the criteria for aggregation                outlined in SFAS No. 131. However, the Company’s analysis is that SFAS No.                131 permits the aggregation of operating segments if, individually,                each                operating segment does not meet any of the following quantitative                thresholds: (i) reported revenue is 10 percent or more of combined                revenue                of all reported operating segments, (ii) the absolute amount of reported                profit or loss is 10 percent or more of the greater, in absolute                amounts,                of either the combined reported profit of all operating segments                that did                not report a loss or the combined reported loss of all operating                segments                that did report a loss, and (iii) its assets are 10 percent or more                of the                combined assets of all operating segments. Since none of the operating                segments included in the Filtration/Purification Technologies segment                meets these criteria, and at least 75 percent of total consolidated                revenue is included in the Product Recovery/Pollution Control Technologies                and Fluid Handling Technologies reporting segments, the Company has                determined the aggregation of these operating segments into this                other                segment is appropriate under SFAS No. 131. The                following is a description of each segment:Product                Recovery/Pollution Control Technologies: This reportable segment                consists                of one operating segment that manufactures products for the purification                of air or liquids. Many of these products are custom designed and                engineered to solve a customer’s pollution control or product recovery                issues. The products are sold worldwide through Company sales personnel                and a network of manufacturer’s representatives. This reporting segment is                comprised of the Duall, Systems, Flex-Kleen and Strobic Air business                units. |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

Index

----

**MET-PRO        CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**
**(Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

|                        | Fluid                Handling Technologies: This reportable segment consists of one operating                segment that manufactures high quality centrifugal pumps that are                applied                on difficult applications including pumping of acids, brines, caustics,                bleaches, seawater, high temperature liquids and a wide variety of                waste                liquids. A variety of pump configurations make these products adaptable                to                almost any pumping application. These products are sold worldwide                through                an extensive network of distributors. This reporting segment is comprised                of the Dean Pump, Fybroc and Sethco business units. Filtration/Purification                Technologies: This other segment consists of four operating segments                that                produce the following products: proprietary chemicals for the treatment                of                municipal drinking water systems and boiler and cooling tower systems;                cartridges and filter housings; filtration products for difficult                industrial air and liquid applications; and filter systems using                horizontal disc technology. This other segment is comprised of the                Keystone Filter, Pristine Water Solutions, Mefiag and Mefiag B.V.                operating segments. The                accounting policies of the reporting segments are the same as those                described in the summary of significant accounting policies. The                Company                evaluates the performance of these segments based on many factors                including sales, sales trends, margins and operating                performance.No                significant inter-company revenue is realized in these reporting                segments.                Interest income and expense are not included in the measure of reporting                segment profit reviewed by management. Income taxes are also not                included                in the measure of reporting segment operating profit reviewed by                management.No                significant intercompany revenue is realized by these reporting segments.                Interest income and expense are not included in the measure of reporting                segment profit reviewed by management. Income taxes are also not                included                in the measure of reporting segment operating profit reviewed by                management.Financial                information for the two reporting segments and one other segment                is shown                on page 32. |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **NOTE                14:** | **GEOGRAPHIC              INFORMATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                        | Tansfers                between geographic areas are accounted for at cost and consistent                with                rules and regulations of governing tax authorities. Such transfers                are                eliminated in the consolidated financial statements. Income from                operations by geographic segment includes an allocation of general                corporate expenses. Identifiable assets are those that can be directly                associated with the geographic area. Geographic information for the                three                years ended January 31 is presented in the following                table:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

|   |                                   | **2007     ** |   | **                 2006     ** |   | **2005     ** |   |
|--------|----------------------------------------|----------------------------------------|--------|--------------------------------------------------------------|--------|----------------------------------------|--------|
|   | Net                sales:              |                                   |   |                                                         |   |                                   |   |
|   | United                States           | $68,246,183                            |   | $64,106,151                                                  |   | $56,664,160                            |   |
|   | Foreign                                | 23,164,931                             |   | 21,009,949                                                   |   | 15,452,129                             |   |
|   |                                   | $91,411,114                            |   | $85,116,100                                                  |   | $72,116,289                            |   |
|   |                                   |                                   |   |                                                         |   |                                   |   |
|   | Income                from operations: |                                   |   |                                                         |   |                                   |   |
|   | United                States           | $7,628,754                             |   | $7,112,573                                                   |   | $5,731,250                             |   |
|   | Foreign                                | 2,522,388                              |   | 2,550,031                                                    |   | 1,652,865                              |   |
|   |                                   | $10,151,142                            |   | $9,662,604                                                   |   | $7,384,115                             |   |
|   |                                   |                                   |   |                                                         |   |                                   |   |
|   | Total                assets:           |                                   |   |                                                         |   |                                   |   |
|   | United                States           | $87,245,117                            |   | $79,295,147                                                  |   | $75,154,819                            |   |
|   | Foreign                                | 9,921,469                              |   | 9,776,244                                                    |   | 7,532,785                              |   |
|   |                                   | $97,166,586                            |   | $89,071,391                                                  |   | $82,687,604                            |   |

Index

----

**MET-PRO            CORPORATION**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**
**(Continued)**

**FOR      THE YEARS ENDED JANUARY 31, 2007, 2006 AND 2005**

| **NOTE                15:** | **CONTINGENCIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                        | 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. The                Company is also party to a small number of other legal proceedings                arising                in the ordinary course of business. Although the ultimate outcome of                any legal matter cannot be predicted with certainty, based upon the                present information, including the Company’s assessment of the facts of                each particular claim as well as accruals, the Company believes that                no                pending proceeding will have a material adverse impact upon the Company’s                results of operations, liquidity, or financial                condition. |

Index

----

**QUARTERLY      FINANCIAL DATA      (Unaudited)**

|     |                                     |   |                                  |   |                                |   | **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  | 25,323,927  |   | 8,318,009  |   | 2,172,818  |   | .19  |   | .19  |   |
| Fourth                Quarter | 22,529,264  |   | 7,601,426  |   | 2,001,878  |   | .18  |   | .18  |   |

** **
** **
** **

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

**Item      9A.*****       Controls and Procedures:***

**Item      9B.  *****Other      Information:***

Index

----

**PART      III**

**Item        10.  *****Directors,        Executive Officers and Corporate Governance*****:**

* *
*www.met-pro.com*

*www.met-pro.com*
*,        *

**Item        11. *****Executive        Compensation*****:**

**Item        12.** ** *****Security        Ownership of Certain Beneficial Owners and Management and Related Shareholder        Matters:***

**Item        13. *****Certain        Relationships and Related Transactions, and Director        Independence:***

**Item        14.** ** *****Principal        Accountant Fees and Services:***

Index

----

**PART      IV**

**Item      15.  *****Exhibits      and Financial Statement Schedules:***

| (a)    | *Exhibits                and Financial Statements and Schedules:* |
|--------|-------------------------------------------------------------------|
|   |                                                              |   |
|   | (1)                                                               | Financial                Statements and Schedules: |
|   |                                                              |   |
|   |                                                              | Financial                statements filed as part of this report are listed in the Index to                Consolidated Financial Statements and Supplementary Data that appears                on                page 24 of this report. |
|   |                                                              |   |
|   | (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.*                                                                                                                  |
|   |    |                                                                                                                                                                                                                                                                                                                                      |
|   | (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.*                                                                                                                                             |

Index

----

| **Exhibit                No.** |   | **Description** |   |
|--------------------------------|--------|-----------------|--------|

|   |     |                                                                                                                                                                                                                                                                                                                          |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (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. **                                                                                                                                                                                                    |
|   |     |                                                                                                                                                                                                                                                                                                                          |
|   | (10)(ad) | Fourth                Amendment to the Company’s Salaried                Pension Plan dated as of April 5, 2006. **                                                                                                                                                                                                     |
|   |     |                                                                                                                                                                                                                                                                                                                          |
|   | (10)(ae) | Fifth                Amendment to the Company’s Salaried                Pension Plan dated as of October 18, 2006.                **                                                                                                                                                                                    |

Index

----

| **Exhibit                  No.** |   | **Description** |   |
|----------------------------------|--------|-----------------|--------|

|   |   |                                                                                     |
|--------|--------|------------------------------------------------------------------------------------------|
|   | (11)   | Statement                Re-computation of Per Share Earnings. See page 28 of Item 8.    |
|   |   |                                                                                     |
|   | (21)   | List                of Subsidiaries of Registrant as of January 31,                2007: |

| Corporate                                    |   | Jurisdiction                of            |   | Name                under which Business                  |
|----------------------------------------------|--------|-------------------------------------------|--------|-----------------------------------------------------------|
| Name                                         |   | Incorporation                             |   | is                Conducted                               |
|                                         |   |                                      |   |                                                      |
| Mefiag                B.V.                   |   | The                Netherlands            |   | Mefiag                B.V., a wholly owned                |
|                                         |   |                                      |   | Subsidiary                of Met-Pro Corporation          |
|                                         |   |                                      |   |                                                      |
| Flex-Kleen                Canada, Inc.       |   | Ontario,                Canada            |   | Flex-Kleen                Canada, Inc.,                   |
|                                         |   |                                      |   | a                wholly-owned subsidiary of               |
|                                         |   |                                      |   | Met-Pro                Corporation                        |
|                                         |   |                                      |   |                                                      |
| Strobic                Air Corporation       |   | Delaware                                  |   | Strobic                Air Corporation,                   |
|                                         |   |                                      |   | a                wholly-owned subsidiary of               |
|                                         |   |                                      |   | Met-Pro                Corporation                        |
|                                         |   |                                      |   |                                                      |
| MPC                Inc.                      |   | Delaware                                  |   | MPC                Inc.,                                  |
|                                         |   |                                      |   | a                wholly-owned subsidiary of               |
|                                         |   |                                      |   | Met-Pro                Corporation                        |
|                                         |   |                                      |   |                                                      |
| Pristine                Water Solutions Inc. |   | Delaware                                  |   | Pristine                Water Solutions Inc.,             |
|                                         |   |                                      |   | a                wholly-owned subsidiary of               |
|                                         |   |                                      |   | Met-Pro                Corporation                        |
|                                         |   |                                      |   |                                                      |
| Mefiag                (Guangzhou) Filter     |   | People’s                Republic of |   | Mefiag                (Guangzhou) Filter Systems Ltd.,    |
| Systems                Ltd.                  |   | China                                     |   | a                wholly-owned subsidiary of Met-Pro (Hong |
|                                         |   |                                      |   | Kong)                Company Limited                      |
|                                         |   |                                      |   |                                                      |
| Met-Pro                (Hong Kong)           |   | Hong                Kong                  |   | Met-Pro                (Hong Kong) Company                |
| Company                Limited               |   |                                      |   | Limited,                a wholly-owned subsidiary         |
|                                         |   |                                      |   | of                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                ** |
|   |   |   |
|   | (32.2) | 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                ** |

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.                                                                       |

Index

----

**SIGNATURES**

|                          |   | MET-PRO              CORPORATION |
|-------------------------------|--------|----------------------------------|
|                          |   |                             |   |
| April                13, 2007 |   | 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,                                     | April                13, 2007 |
| Raymond                J. De Hont           | Chief                Executive Officer        |                          |
|                                        | and                President                  |                          |
|                                        |                                          |                          |
| /s/                Gary J. Morgan           | Senior                Vice President-Finance, | April                13, 2007 |
| Gary                J. Morgan               | Secretary,                Treasurer,          |                          |
|                                        | Chief                Financial Officer,       |                          |
|                                        | Chief                Accounting Officer       |                          |
|                                        | and                Director                   |                          |
|                                        |                                          |                          |
| /s/                Nicholas DeBenedictis    | Director                                      | April                13, 2007 |
| Nicholas                DeBenedictis        |                                          |                          |
|                                        |                                          |                          |
| /s/                George H. Glatfelter II  | Director                                      | April                13, 2007 |
| George                H. Glatfelter II      |                                          |                          |
|                                        |                                          |                          |
| /s/                William L. Kacin         | Director                                      | April                13, 2007 |
| William                L. Kacin             |                                          |                          |
|                                        |                                          |                          |
| /s/                Alan Lawley              | Director                                      | April                13, 2007 |
| Alan                Lawley                  |                                          |                          |
|                                        |                                          |                          |
| /s/                Michael J. Morris        | Director                                      | April                13, 2007 |
| Michael                J. Morris            |                                          |                          |
|                                        |                                          |                          |
| /s/                Constantine N. Papadakis | Director                                      | April                13, 2007 |
| Constantine                N. Papadakis     |                                          |                          |

Index

----