MISCOR Group Announces Distribution Agreement with Avtron Industrial Automation, Inc.

     MISCOR Group Announces Distribution Agreement with Avtron Industrial
                               Automation, Inc.

PR Newswire

MASSILLON, Ohio, May 16, 2012

MASSILLON, Ohio, May 16, 2012 /PRNewswire/ --MISCOR Group, Ltd. (OTCQB:MIGL)
is pleased to announce the authorization of its wholly owned subsidiary,
Magnetech Industrial Services, as a distributor for Avtron Industrial
Automation, Inc. As a distributor Magnetech offers its customers access to
Avtron's encoders, encoder signal convertors, and related encoder accessories
for various applications across several industries, including metal producing,
metal forming, pulp and paper, wind energy and material handling. Magnetech
provides comprehensive maintenance and repair services for
electrical-mechanical industrial equipment and power distribution equipment,
including rewind and refurbishment, field services, preventative maintenance,
and emergency services.

"Avtron is an ideal partner for us. Keeping our customers productive is our
business. Avtron's specially engineered, ultra reliable products align with
our commitment to provide customers with exceptional repair services and
value-added products," said Michael P. Moore, President and CEO of MISCOR

The agreement grants Magnetech the rights to distribute Avtron branded
products, including the SMARTach™ and THIN-LINE™ product lines, along with
other related spare parts and accessories, which ultimately improve
productivity. The terms of the agreement allow distribution within a
geographical territory consisting of Ohio, Indiana, Michigan and Kentucky.

"We're delighted to welcome Avtron as a new vendor partner. This agreement
further supports our commitment to provide superior quality products to our
customers through the Magnetech sales network," remarked Moore. "The Avtron
portfolio of encoders will provide our customer community with durable, highly
customizable offerings for their most complex applications. We are excited
about the opportunities created by this partnership as we continue driving our
growth initiatives and delivering on our performance expectations."

About MISCOR Group, Ltd.

Massillon, Ohio-based MISCOR Group, Ltd. (MIGL) provides electrical and
mechanical solutions to industrial, commercial and institutional customers
through two segments: Industrial Services, consisting of the Company's
maintenance and repair services to several industries, including electric
utilities, wind power, transportation, chemical, oil, pulp and paper, metal
manufacturing and forming, and repairing, manufacturing, and remanufacturing
industrial lifting magnets for the steel and scrap industries; and Rail
Services, consisting of the Company's manufacturing of power assemblies,
engine parts, and other components related to large diesel engines.

About Avtron Industrial Automation, Inc.

Avtron Industrial Automation is recognized worldwide as the market leader in
heavy duty encoders, used to provide precise speed control in severe
environment applications including metals, cranes, pulp & paper, material
handling and wind turbine generators.

Avtron Industrial Automation also delivers drive systems, automation solutions
and diagnostic software designed to help users reduce costs, increase
efficiency and enhance profitability. Headquartered in Independence, Ohio,
Avtron Industrial Automation provides solutions for the global market.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995. Words such as "anticipates," "believes," "estimates,"
"expects," "intends," "should," "could," "will," or variations of such words
and similar expressions are intended to identify forward-looking statements.
These forward-looking statements reflect the Company's views, expectations and
beliefs at the time such statements were made with respect to such matters,
and may cover such items as the Company's future plans, objectives, events,
contract pricing and results such as revenues, expenses, income, earnings per
share, capital expenditures, operating margins, financial position, expected
results of operations and other financial items. There are a number of
factors, many of which are beyond the Company's control, which could cause
actual results and outcomes to differ materially from those described in the
forward-looking statements. Forward-looking statements are not guarantees of
future performance and involve certain risks, uncertainties and assumptions
("Risk Factors") that make the timing, extent, likelihood and degree of
occurrence of these matters difficult to predict. Risk Factors include, among
others: price of raw materials, ability to win and service competitively
priced new contracts in sufficient amounts to operate and expand effectively,
employee turnover, ability to compete in highly competitive, geographically
diverse marketplaces, ability to complete planned divestitures and varying and
sometimes volatile economic conditions. For further discussion of risks and
uncertainties, individuals should refer to the Company's SEC filings. MISCOR
Group, Ltd. undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances occurring after
this press release is issued. You are cautioned not to place undue reliance on
these forward looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their entirety
by this cautionary statement.

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