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CECO Environmental Reports Record Quarterly and Nine Month Revenue and Operating Income
Revenues Increased by Over 60% for Both Periods
Operating Income Increased by 32% for the Quarter
Operating Income Increased by 142% for the Nine Month Period
PRNewswire-FirstCall
NEW YORK

CECO Environmental Corp. , a leading provider of air pollution control and industrial ventilation systems, today announced record revenues and net income for the three and nine months ended September 30, 2006.

  Financial highlights:     $ in 000's

  Three months ended                                 $            %
   September 30               2006       2005      change       change

  Net sales                  $37,734    $23,442    $14,292       61.0 %
  Gross profit                 6,142      4,524      1,618       35.8 %
  Operating income             1,664      1,257        407       32.4 %
  Other income (expense)(1)      409       (273)       682        n/a
  Income before income tax     1,613        390      1,223        314 %
  Income tax expense             546         35        511       1460 %

  Net income                  $1,067       $355       $712        201 %



  Nine months ended                                  $             %
    September 30              2006       2005      change        change

  Net sales                  $93,861    $58,512    $35,349       60.4 %
  Gross profit                15,878     10,965      4,913       44.8 %
  Operating income             3,600      1,489      2,111      141.8 %
  Other income (expense)(1)      703       (197)       900        n/a
  Income (loss) before
   income tax                  2,746       (524)     3,270        n/a
  Income tax expense
   (benefit)                     853       (482)     1,335        n/a

  Net income (loss)           $1,893       $(42)    $1,935        n/a


  Note:
  (1)   Other income (expense) was $409,000 in the third quarter of 2006
       compared to other expense of ($273,000) in the third quarter of 2005.
       $432,000 of third quarter 2006 income was the result of the exercise
       of 100,600 warrants issued in December 2001 offset by other expenses
       of $23,000.  Other income for the nine months ended September 30,
       2006 was $703,000 compared to other expense of ($197,000) in 2005.
       $727,000 of nine month 2006 income was the result of the exercise of
       348,567 warrants issued in December 2001 offset by $24,000 of other
       expenses.

Our backlog as of September 30, 2006 was $50.1 million compared to $28.9 million as of December 31, 2005.

President, Rick Blum stated, "We continue to be pleased with our 2006 results. Although our margins as a percentage of sales are lower than prior periods, the change is due primarily to a changing product mix and the negative impact of one large underperforming project which reduced our overall margins by approximately one percentage point for both the quarter and the nine month period. Despite these factors, our gross profits have increased significantly."

Chairman and CEO, Phillip DeZwirek commented, "Our order flow this year has remained consistently strong with bookings through October of over $126 million compared to $69.5 million through October of 2005. We anticipate that the fourth quarter will reflect this continuing upward trend in revenues and profits."

ABOUT CECO ENVIRONMENTAL

CECO Environmental Corp. is North America's largest independent air pollution control company. Through its seven subsidiaries -- Busch, CECOaire, CECO Filters, CECO Abatement Systems, kbd/Technic, Kirk & Blum and H. M. White, Inc. -- CECO provides a wide spectrum of air quality services and products including: industrial air filters, environmental maintenance, monitoring and management services, and air quality improvements systems. CECO is a full-service provider to the steel, military, aluminum, automotive, ethanol, 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/.

   Contact:
   Corporate Information
   Phillip DeZwirek, CECO Environmental Corp.
   Email: investors@cecoenviro.com
   1-800-606-CECO



                         CECO Environmental Corp.
              Condensed Consolidated Statement of Operations
                ($'s in thousands, except per share data)
                               (unaudited)

                      Three months ended     Nine months ended
                     30-Sept-06 30-Sept-05 30-Sept-06 30-Sept-05

  Net sales             $37,734   $23,442    $93,861    $58,512
  Cost of sales          31,592    18,918     77,983     47,547
  Gross profit            6,142     4,524     15,878     10,965
  Selling and
   administrative         4,185     2,974     11,400      8,600
  Depreciation and
   amortization             293       293        878        876
  Operating income        1,664     1,257      3,600      1,489
  Other income
   (expense)                409      (273)       703       (197)
  Interest expense         (460)     (594)    (1,557)    (1,816)
  Income (loss) before
   income taxes           1,613       390      2,746       (524)
  Income tax provision
   (benefit)                546        35        853       (482)

  Net income (loss)      $1,067      $355     $1,893       ($42)

  Per share data:
  Basic net income
   (loss)                  $.09      $.04       $.17       $.00
  Diluted net income
   (loss)                  $.08      $.03       $.15       $.00

  Weighted average
   shares
   outstanding:     11,412,369  9,993,260  11,185,464 9,993,260

  Basic
  Diluted           13,033,824 11,169,034  12,778,806 9,993,260


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.

First Call Analyst:
FCMN Contact:

SOURCE: CECO Environmental Corp.

Contact: Phillip DeZwirek of CECO Environmental Corp., +1-800-606-CECO,
or investors@cecoenviro.com

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