PMFG, Inc. (Parent of Peerless Mfg. Co.) Announces Changes in Corporate Governance and Executive Compensation-Related Practices

PMFG, Inc. (Parent of Peerless Mfg. Co.) Announces Changes in Corporate
Governance and Executive Compensation-Related Practices

DALLAS, May 13, 2013 (GLOBE NEWSWIRE) -- PMFG, Inc. (the "Company")
(Nasdaq:PMFG) today announced that its Board of Directors (the "Board") has or
will implement several changes in the Company's governance and executive
compensation-related practices. The changes resulted from the Board's
evaluation of recent input from certain of the Company's stockholders, as well
as various shareholder service organizations.

Governance-Related Matters

Effective May 8, 2013, Mr. Sherrill Stone, Chairman of the Board, ceased to be
a member of the Company's Audit, Compensation, and Nominating and Corporate
Governance Committees. Mr. Stone voluntarily resigned from the standing
committees to address concerns raised by Institutional Shareholder Services,
which designated him as an "Affiliated Outside Director" due to his former
role as the Company's Chief Executive Officer.Mr. Stone will retain his role
as Chairman of the Board and will continue to serve as a member of the Board.

The Board adopted a director resignation policy, under which a Board nominee
receiving "For" votes of less than 50 percent of the votes cast in an
uncontested election will be required to tender his or her resignation to the
Board for consideration. The Board has the discretion to decline to accept
such resignation and request that the director fulfill his or her Board term.
In such event the Board would be required to disclose the reasons for such

Compensation-Related Matters

The Board, upon the recommendation of the Compensation Committee, agreed to
make certain prospective changes to its executive compensation programs and
practices intended to improve the alignment between the compensation practices
and guidelines of the Company's executive officers and the interests of the
stockholders. The changes include (i) double-trigger change of control
provisions for stock awards; (ii) holding requirements for Company stock
obtained under long-term incentive compensation plans; (iii) prohibiting
hedging transactions; (iv) discouraging pledging of Company stock; (v)
elimination of tax gross ups from all future employment agreements; and (vi)
"clawback" policy addressing the recovery of certain incentive compensation
following a restatement of the Company's financial statements.

Comment from the Company's Chairman of the Board

Mr. Stone, PMFG's Chairman of the Board said, "The actions taken by the Board
of Directors reflect the results of careful consideration of feedback and
insight obtained from the Company's stockholders and independent shareholder
service organizations. We believe these changes are in the best long-term
interest of the Company and demonstrate the Board's commitment to align the
Company's programs and policies with the interests of its stockholders."

About PMFG

PMFG is a leading provider of custom-engineered systems and products designed
to help ensure that the delivery of energy is safe, efficient and clean. PMFG
primarily serves the markets for power generation, natural gas infrastructure
and petrochemical processing. Headquartered in Dallas, Texas, PMFG markets its
systems and products worldwide.

Safe Harbor Under The Private Securities Litigation Reform Act of 1995

Certain statements contained in this press release that are not historical
facts are forward-looking statements that involve a number of known and
unknown risks, uncertainties and other factors that could cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievement expressed or implied by
such forward-looking statements. The words "anticipate," "expect," "believe,"
"intend" and similar expressions identify forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for
such forward-looking statements. In order to comply with the terms of the safe
harbor, the Company notes that a variety of factors could cause actual results
and experience to differ materially from the anticipated results or other
expectations expressed in such forward-looking statements. These risks and
uncertainties include the Company's ability to raise additional capital and to
execute its plans and strategies. Other important information regarding
factors that may affect the Company's future performance is included in the
public reports that the Company files with theSEC, including the information
under Item 1A. "Risk Factors" in the Company's Annual Report on Form 10-K for
the fiscal year endedJune 30, 2012. The Company undertakes no obligation to
revise any forward-looking statements or to update them to reflect events or
circumstances occurring after the date of this release, or to reflect the
occurrence of unanticipated events. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. The inclusion of any statement in this release does not constitute an
admission by the Company or any other person that the events or circumstances
described in such statement are material.

CONTACT: Mr. Peter J. Burlage, Chief Executive Officer
         Mr. Ronald L. McCrummen, Chief Financial Officer
         PMFG, Inc.
         14651 North Dallas Parkway, Suite 500
         Dallas, Texas 75254
         Phone: (214) 357-6181
         Fax: (214) 351-4172
         Mr. Shawn Severson
         The Blueshirt Group
         Phone: (415) 489-2198
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