For the quarter, Flow reported consolidated revenues of $37.8 million, which compares to $43.7 million in the fourth quarter of fiscal year 2009 and $57.1 million in the year-ago quarter. The Company reported a net loss of $8.5 million or a $0.23 loss per share as compared to net income of $1.6 million or $0.04 per share in the prior year quarter. The net loss for the quarter just ended includes a total of $6.0 million in pre-tax charges, consisting of a net charge of $3.2 million related to the termination of the OMAX transaction, $1.6 million for severance and other related charges associated with its cost reduction efforts, and approximately $1.2 million for a reserve related to a business sold in October 2005 that was classified as a discontinued operation. Excluding those charges and the related tax effects, the net loss would have been $2.7 million or $0.07 loss per share in the current quarter.

"Two-thirds of our revenue stream continues to be either stable or growing. The remaining one-third continues to be unpredictable but we are encouraged by the interest level in our products that customers are expressing," said Charley Brown, President and CEO of Flow. "The pace of recovery remains slow in certain markets, but we have made many cost reductions this year that we expect to positively impact our results throughout fiscal 2010. These reductions, combined with our recent capital raise and the amendments to our bank covenants, position us well to exit this recession as a stronger company. We appreciate the active engagement of our secured lenders and the support of our shareholders as we position the Company for a return to economic growth."

   Operations Review   For the fiscal 2010 first quarter:    --  Standard Segment sales, which include sales of systems that do not       require significant custom configuration, as well as parts and       services for those installed systems, were $28.4 million in the       quarter, a decrease of 13% from the fourth quarter of fiscal year 2009       and a decrease of 46% from the prior-year quarter.  Operating loss       from the Standard Segment totaled $2.6 million in the quarter, which       includes severance and related costs of $1.3 million.  Excluding those       charges, operating loss from the Standard Segment totaled $1.3 million       as compared to operating income of $10.4 million in the prior-year       quarter.   --  Advanced Segment sales, which include sales of complex aerospace and       automation systems requiring specific custom configuration and       advanced features, as well as parts and services for those installed       systems, were $9.4 million in the quarter, a decrease of 16% from the       fourth quarter of fiscal year 2009 and an increase of 118% from the       prior-year quarter.  Operating income from the Advanced Segment was       $1.8 million in the quarter as compared to an operating loss of $1.1       million in the prior-year quarter, after excluding $1.4 million of       severance and related charges in that prior period.  The Advanced       Segment backlog at the end of the quarter was $32.6 million.    --  Total overall operating expenses in the quarter were $21.6 million,       which includes the $4.8 million in pre-tax charges related to the       termination of the OMAX transaction and cost reduction efforts.        Excluding those charges, operating expenses were $16.7 million,       compared to $20.9 million in the prior-year quarter, after excluding       restructuring and other costs of $1.4 million in that prior period.     Conference Call  

Flow plans to hold a conference call to discuss these results today: Tuesday, September 8th at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call may be heard by dialing 1-877-941-1427 or 1-480-629-9664. A 48-hour replay will be available following the call by dialing 1-800-406-7325 or 1-303-590-3030; the replay passcode is 4154387. A live audio Webcast of the conference call may be found in the investor section at http://www.flowcorp.com/. A Webcast replay of the call will also be available for two weeks.

About Flow International

Flow International Corporation is the world's leading developer and manufacturer of ultrahigh-pressure waterjet cutting technology to industries including automotive, aerospace, job shop, surface preparation, and more. For more information, visit http://www.flowcorp.com/.

This press release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements but their absence does not mean that the statement is not forward-looking. These statements are only predictions and actual results could differ materially from those anticipated in these statements based on a number of risk factors, including those set forth in the Company's filings with the Securities and Exchange Commission. Forward- looking statements in this press release include, without limitation, statements regarding the future effect of cost reductions and the anticipated strength of the Company when the recession ends. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement.

   Contact:   Flow Investor Relations   Geoffrey Buscher   253-813-3286   investors@flowcorp.com                           Flow International Corporation                      Consolidated Statements of Operations                                   (Unaudited)    US Dollars in thousands, except per share data                                                  Three months ended July 31,                                                     2009     2008  % Change                                                     ----     ----  --------    Sales                                          $37,752  $57,065       -34%    Cost of Sales                                   23,776   30,934       -23%                                                   ------   ------    Gross Margin                                    13,976   26,131       -47%                                                   ------   ------    Operating Expenses:         Sales and Marketing                        7,916   10,098       -22%         Research and Engineering                   1,697    2,250       -25%         General and Administrative                 7,122    8,590       -17%         Restructuring and Other Operating Charges  4,823    1,436        NM                                                    -----    -----   Operating Expenses                              21,558   22,374        -4%                                                   ------   ------    Operating Income (Loss)                         (7,582)   3,757        NM    Interest Income (Expense), net                    (924)      49        NM   Other Income, net                                  502      391        28%                                                      ---      ---    Income (Loss) before taxes                      (8,004)   4,197        NM   Income Tax Benefit (Provision)                     606   (2,664)       NM                                                      ---   ------    Income (Loss) from Continuing Operations        (7,398)   1,533        NM    Discontinued Operations, net of tax             (1,148)      70        NM                                                   ------       --    Net Income (Loss)                              $(8,546)  $1,603        NM                                                  =======   ======     Per share amounts:         Basic Income (Loss) from Continuing          Operations                               $(0.20)   $0.04        NM         Basic Net Income (Loss)                   $(0.23)   $0.04        NM          Diluted Income (Loss) from Continuing          Operations                               $(0.20)   $0.04        NM         Diluted Net Income (Loss)                 $(0.23)   $0.04        NM     Weighted Average Shares Outstanding (000):         Basic                                     37,748   37,591         Diluted                                   37,748   38,101    NM = not meaningful                           Flow International Corporation                          Consolidated Balance Sheets                                  (Unaudited)    US Dollars in thousands                                                 July 31,  April 30,                                                   2009      2009    % Change                                                   ----      ----    --------   ASSETS:   Current Assets:     Cash                                        $6,761   $10,117      -33%     Receivables, net                            31,116    32,103       -3%     Inventories                                 20,271    21,480       -6%     Other Current Assets                        13,643    31,543      -57%                                                 ------    ------   Total Current Assets                          71,791    95,243   Property and Equipment, net                   22,266    22,983       -3%   Other Long-Term Assets                        34,250    26,734       28%                                                 ------    ------                                               $128,307  $144,960                                               ========  ========   LIABILITIES AND SHAREHOLDERS' EQUITY:   Current Liabilities:     Notes Payable                              $16,589   $15,226        9%     Current Portion of Long-Term Obligations       648     1,367      -53%     Accounts Payable and Other Accrued      Liabilities                                20,194    17,897       13%     Other Current Liabilities                   20,762    17,830       16%     Reserve for Patent Litigation                    -    15,000       NM                                                    ---    ------   Total Current Liabilities                     58,193    67,320   Other Long-Term Liabilities                    7,710     8,929      -14%   Subordinated Notes                             7,433     6,000       24%                                                  -----     -----   Total Other Long-Term Liabilities             73,336    82,249                                                 ------    ------    Shareholders' Equity                          54,971    62,711      -12%                                                 ------    ------                                               $128,307  $144,960                                               ========  ========                          Flow International Corporation                              Supplemental Data                                 (Unaudited)    US Dollars in thousands                                                Three months ended July 31,                                                 2009     2008     % Change                                                 ----     ----     --------    Sales Breakdown:           Systems                            $24,403  $39,088       -38%           Consumable Parts                    13,349   17,977       -26%                                               ------   ------      Total                                   $37,752  $57,065       -34%                                              =======  =======    Segment Revenue Breakdown:         Standard                             $28,367  $52,754       -46%         Advanced                               9,385    4,311       118%                                                -----    -----                                              $37,752  $57,065       -34%                                              =======  =======    Segment Operating Income (Loss) Breakdown:         Standard                             $(2,552) $10,433        NM         Advanced                               1,791   (2,468)       NM         All Other*                            (6,547)  (4,225)      -55%         Intersegment Eliminations               (274)      17        NM                                                 ----       --                                              $(7,582)  $3,757        NM                                              =======   ======    * Includes corporate overhead expenses as well as general and   administrative expenses of inactive subsidiaries that do not constitute   segments.    Depreciation and Amortization Expense       $1,232   $1,050        17%    Capital Spending                            $4,472   $1,300       244%                        Flow International Corporation                   Reconciliation of GAAP to Proforma                               (Unaudited)    US Dollars in thousands, except per share data                                                  Three months ended July 31,                                                         2009      2008                                                         ----      ----   GAAP Income (Loss) from Continuing Operations      $(7,398)   $1,533    Adjustments:            OMAX Termination Charge                      3,219         -           Restructuring and Other Operating Charges    1,604     1,436           Write-off of Deferred Debt Issuance Costs      253         -           Inventory Write-Off                              -       108           Tax Effect of Adjustments                     (384)        -                                                       -------    ------   Proforma Income (Loss) from Continuing Operations  $(2,707)   $3,077                                                      -------    ------     GAAP Net Income (Loss)                             $(8,546)   $1,603    Adjustments:            OMAX Termination Charge                      3,219         -           Restructuring and Other Operating Charges    1,604     1,436           Write-off of Deferred Debt Issuance Costs      253         -           Inventory Write-Off                              -       108           Discontinued Operations                      1,148        70           Tax Effect of Adjustments                     (384)        -                                                       -------    ------   Proforma Net Income (Loss)                         $(2,707)   $3,217                                                      -------    ------     Per Share Amounts    GAAP Basic and Diluted Income (Loss) Per Share       Income (Loss) from Continuing Operations        $(0.20)    $0.04       Net Income (Loss)                               $(0.23)    $0.04    Proforma Basic and Diluted Income (Loss) per Share       Income (Loss) from Continuing Operations        $(0.07)    $0.08       Net Income (Loss)                               $(0.07)    $0.08  

Flow International Corporation

CONTACT: Geoffrey Buscher of Flow Investor Relations, +1-253-813-3286,investors@flowcorp.com

Web Site: http://www.flowcorp.com/

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