Omega Flex, Inc. Announces Settlement Agreement

Omega Flex, Inc. Announces Settlement Agreement

Reports Subsequent Event to 2012 Fiscal Year Results

EXTON, Pa., March 20, 2013 (GLOBE NEWSWIRE) -- Omega Flex, Inc. (the
"Company") (Nasdaq:OFLX) announced that its English subsidiary, Omega Flex
Limited ("OFL"), has reached an agreement to settle litigation related to a
construction project in Milton Keynes, England that involved a number of
parties and issues. This agreement fully resolves all claims related to the
construction project, including claims regarding performance deficiencies of
OFL products at the site. OFL believes that the claims are without merit and
strongly disagrees with the allegation that the products caused any delays or
damages at the site. Following protracted litigation and the uncertain
prospects of a trial and the possibility of costs being assessed against OFL,
the board of directors of OFL decided that it would be in the best interests
of that company to enter into this agreement to resolve these claims and avoid
potentially costly litigation.

OFL agreed to resolve claims by making a one-time payment of £800,000, which
on a consolidated basis after considering all ancillary charges, will result
in an after-tax charge to earnings of the Company of $820,000 ($0.08 per
diluted common share) in both the Company's fourth quarter and year ended
December 31, 2012. The settlement agreement was entered into after the Company
announced its preliminary results of operations for the fourth quarter and
year ended December 31, 2012, but prior to the filing of the Company's Annual
Report on Form 10-K with the U.S. Securities and Exchange Commission for the
fiscal year ended December 31, 2012. In accordance with U.S. generally
accepted accounting principles, the Company is required to recognize the
consummation of this agreement as a subsequent event in its 2012 fiscal year
results because the event is related to conditions that existed at the balance
sheet date of December 31, 2012. The Company's Net Sales and Net Income
attributable to Omega Flex, Inc. for the quarter and year ended December 31,
2012, as reported in the Company's Current Report on Form 8-K furnished on
February 21, 2013, are being revised to reflect the effects of the settlement
agreement as indicated below. Although this agreement will not have an effect
on full year 2013 earnings, cash flow from operations will be impacted when
this settlement payment is made.

                              OMEGA FLEX, INC. (OFLX)
                              Twelve Months Ended     Three Months Ended
                               December 31,            December 31,
                              2012        2011        2012        2011
                                                               
Net Sales                      $64,016,000 $54,193,000 $18,426,000 $15,618,000
                                                               
Net Income attributable to     $6,876,000  $4,647,000  $774,000    $1,708,000
Omega Flex, Inc.
                                                               
Earnings Per Share – Basic and $0.68       $0.46       $0.08       $0.17
Diluted
                                                               
Weighted Average Shares –      10,091,822  10,091,822  10,091,822  10,091,822
Basic and Diluted

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS – This news release contains
forward-looking statements, which are subject to inherent uncertainties which
are difficult to predict, and may be beyond the ability of Omega Flex to
control. Certain statements in this news release constitute forward-looking
statements with the meaning of the Private Securities Litigation Reform act of
1995, which are not historical facts, but rather reflect Omega Flex's current
expectations concerning future results and events. The words "believes,"
"expects," "intends," "plans," "anticipates," "hopes," "likely," "will," and
similar expressions identify such forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties and
other important factors that could cause the actual results, performance or
achievements of Omega Flex (or entities in which Omega Flex has interests) or
industry results, to differ materially from future results, performance or
achievements expressed or implied by such forward-looking statements. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which reflect management's view only as of the date of this news release.
Omega Flex undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements which may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events, conditions or circumstances.

CONTACT: Timothy Scanlan
         (860) 704-6820
 
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