02.19.03
FLOW INTERNATIONAL ANNOUNCES RESTRUCTURING PROGRAM AND DEVELOPMENT OF STRATEGIC ALTERNATIVES FOR AVURE TECHNOLOGIES

KENT, Wash., February 19, 2003 - Flow International Corporation (Nasdaq: FLOW), the world’s leading developer and manufacturer of ultrahigh-pressure waterjet technology used for cutting, cleaning (surface preparation) and food safety applications, today announced the start of a two-year restructuring program intended to return the company to profitability through reductions in headcount, consolidation of facilities and operations, and closure or divestiture of selected company business units. Additionally, as part of that restructuring, FLOW has retained The Food Partners, LLC, the nation’s preeminent investment banking firm to the food industry, to develop and implement strategic alternatives for AVURE, the company’s food technology business unit.

FLOW also announced that it has entered into a new long-term lease for the company’s headquarters facility providing substantial savings throughout the lease term, and that the company has obtained the debt covenant forbearance from its Senior Lenders discussed in its December 16, 2002 Form 10-Q and its January 27, 2003 Form 8-K announcement. The company will begin to work with its Subordinated Lender to obtain the same forbearance. In addition, FLOW anticipates developing a new long-term credit facility with its Senior Lenders to replace its current facility, which expires in September 2003.

“We are committed to restructure our company over the next two years to restore profitability and aggressively improve cash flows and return on investment while we continue to develop and manufacture customer productivity enhancing equipment and technology,” commented Stephen R. Light, FLOW’s newly appointed President and CEO. “Working in concert with our Senior Lenders, we expect to complete our restructuring within the limits of our current credit facility. We believe that inventory reduction and receivable collection programs, as well as other expense reductions, will allow the company to self-fund the majority of the cash costs related to the restructuring. We are pleased that our Senior Lenders have endorsed this program and are committed to helping us achieve this plan.”

Light continued, “We are evaluating all aspects of our business to identify cost savings and global efficiencies. Initial elements of the restructuring program are already underway. In the near term, we would expect there to be closures and divestitures or reductions in work force in selected operations, as well as significant non-cash write offs.

“Following completion of our restructuring and new product introduction programs, a fiscally strong, customer-focused FLOW, will have enhanced its global leadership position in all presently served markets including Europe, the Americas, Asia and the Middle East.
“We will provide more detail on our restructuring program and its financial impact, as well as provide an update on our progress with our lenders, when we report our quarterly results.”

The company expects to report its third fiscal quarter financial results and hold a conference call for investors and analysts on March 17, 2003 after the close of regular market trading.

About Flow International
Flow International Corporation is the world’s leading developer and manufacturer of ultrahigh-pressure (UHP) waterjet technology for cutting, cleaning, and food-safety applications, as well as isostatic and flexform presses. FLOW provides total system solutions for various industries, including automotive, aerospace, paper, job shop, surface preparation, and food production. For more information, visit www.flowcorp.com.

About Avure Technologies Incorporated
Avure Technologies is a wholly owned subsidiary of Flow International Corporation. Avure’s Fresher Under Pressure HPP technology destroys food-borne pathogens, including Salmonella, E. coli and Listeria. HPP also destroys other organisms that can cause health hazards and spoilage in fresh foods, without compromising taste, color, texture, or nutritional value. For more information, visit www.avure.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 April 30, 2002, Flow International Corporation Form 10-K Report filed with the Securities and Exchange Commission. Forward-looking statements in this press release include, without limitation statements regarding the benefits of the restructuring program on the company’s future; including its profitability, reduced working capital, improved return on investment and enhanced global leadership position, statements regarding The Food Partners, LLC development of strategic alternatives for Avure, the statement regarding the development of a new long-term credit facility and the statements regarding the methods the company will use to fund the restructuring. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement.