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CECO Environmental Announces Successful Equity Transactions of $4.4 Million; Corporate Debt Reduced by 42% in Two Years
PRNewswire
CINCINNATI

CECO Environmental Corp. , North America's largest independent air pollution control company, announced today that it has completed new equity financings totaling $4,370,000. CECO raised equity from two separate groups; a private investment group, and a management lead group. Net proceeds of these capital investments, combined with excess working capital, were used to repay $5 million of long-term bank debt.

With this latest transaction, CECO's bank debt incurred in connection with its acquisition of Kirk & Blum has been reduced by $12.7 million in just two years, from $30.2 million on December 7, 1999 to $17.5 million on December 31, 2001.

"CECO has prospered in a difficult economic climate," said Richard Blum, President of CECO Environmental. "The latest capital investments, combined with cash flow from operations, further reduces debt related to the acquisition of Kirk & Blum."

Crestview Capital, a prominent Chicago-based investment fund, along with a select group of three outside investors purchased 706,668 common shares at $3.00 per share. Also under terms of the financing, warrants were issued for 353,334 common shares at an exercise price of $3.60 per share. Gross proceeds were $2,120,000.

"CECO Environmental is undervalued in the market by almost every benchmark we could apply," said Stewart R. Flink, Managing Director for Crestview Capital Fund. "CECO is valued at less than 50% of trailing 12 month revenues net of debt. Every public company in this sector trades at a significantly higher multiple. CECO is poised to capitalize on the immense market opportunity that comes with growing global concerns about air quality. Strong management, ongoing revenues from a solid list of blue chip clients, and 30 years of industry-leading expertise will help CECO fortify its position in the marketplace."

CECO's subordinated debt holders, led by an insider, Chairman and CEO, Phillip DeZwirek, exercised warrants for one million common shares, yielding gross proceeds of $2,250,000.

Mr. Blum stated, "The new investment in CECO demonstrates strong confidence in our business model and growth opportunities, while, at the same time, allowing us to increase value for all our shareholders."

ABOUT CECO ENVIRONMENTAL:

CECO Environmental Corp. is North America's largest independent air pollution control company. Through its six subsidiaries -- Air Purator Corporation, Busch Company, CECO Filters, kbd/Technic, CECO Abatement and Kirk & Blum -- CECO provides a wide spectrum of air quality services and products including: industrial air filters, high performance filter fabrics, environmental maintenance, monitoring and management services, and air quality improvements systems. With over $90-million in annual revenue, CECO is a full-service provider to the steel, military, aluminum, automotive, aerospace, semiconductor, chemical, cement, metalworking, glass, foundry and virtually all industrial process industries. For more information on CECO environmental please visit the company's website at http://www.cecoenviro.com/.

  FOR FURTHER INFORMATION CONTACT:

   Media Relations:                     Corporate & Investor Relations:
   Primoris Group                       CECO Environmental Corp.
   Corporate Communications             Tel:  1-800-606-CECO
   Tel:  1-877-274-0274
   Email:  ceco@primorisgroup.com

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in CECO's Annual and Quarterly Reports filed with the Securities and Exchange Commission, include changes in market conditions in the industries in which the Company operates. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.

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SOURCE: CECO Environmental Corp.

Contact: Corporate & Investor Relations, CECO Environmental Corp.,
+1-800-606-CECO; or Media Relations, Primoris Group Corporate Communications,
+1-877-274-0274, or ceco@primorisgroup.com, for CECO Environmental Corp.

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