Flow International Receives 2005 Frost & Sullivan Customer Value Enhancement Award

Flow Recognized as Market Leader in Special Machine Tools Category

KENT, Wash., July 21 -- Flow International Corporation , the world's leading developer and manufacturer of ultrahigh-pressure (UHP) waterjet technology equipment used for cutting, cleaning (surface preparation) and food safety applications, announced today that is has been awarded Frost & Sullivan's 2005 Customer Value Enhancement Award for its role as market leader in the Special Machine Tools Space.

"Over the years, Flow has continuously proven itself as the top quality provider of waterjet cutting systems, waterjet surface preparation systems, food processing products, industrial presses and automation solutions," said S.Hariharan, research analyst, Frost & Sullivan. "Flow has consistently provided innovative products, with outstanding customer service and helped its customers achieve operational excellence.

"In interviews, Flow customers have pointed out its ability to provide outstanding product quality, service support, and their ability to enhance product quality, achieve shorter delivery times, reduce scrap, rework and reduced life cycle costs," continued Hariharan. "This clearly indicates Flow's strength in technology, logistics and its customer oriented approach."

Flow's customers also cited the company's innovative solutions as a key part of their ability to secure new business by providing support in their sales and business development efforts. Flow's innovative Customer Operational and Evaluation Review Program (CORE) allows the company to attend to their customers' issues with short lead and turn around times, resulting in its customers' ability to achieve their delivery commitments. The benefits of lean manufacturing also translate to better after-sales support. This is a result of its impressive 24X7 service support and a system that enables 98% on-time delivery of spare parts and other critical components to customers. Flow's after-sales and service network was cited by customers as a benefit to their business.

"Flow's solutions, including our innovative Dynamic Waterjet technology, provide a unique advantage for such diverse industries as aerospace, job shops, stone fabricators and even micro-processor chip manufacturing, our solutions also provide enhanced productivity for composite machining and other types of critical forms cutting," said Michael Ruppenthal, Flow's vice president of marketing. "At the heart of our solutions is our unique pump technology, which provides us with a clear edge over our competitors."

One of the key challenges faced by end-users is the variety of components that can be machined using a waterjet system. Flow is the only company in the industry that markets two different varieties of pumps to meet diverse challenges - intensifier and Hyplex direct drive pumps. This enables the company to offer products up to a distinctive 87,000 pounds per square inch (psi), which help customers machine components up to 14 inches thick.

"An important end-user concern is managing operating costs, which primarily revolves around abrasive consumption," continued Ruppenthal. "Since abrasive consumption cost is more than 60 percent of the total cutting cost apart from labor and capital investments, it is vital to achieve tight control on this parameter."

Flow's PASER-ECL abrasive system controls and optimizes the abrasive concentration in the cutting fluids, according to application requirements, provides maximum benefit to its customers through cutting cost reduction. "This is again a proof of Flow's customer-need-driven operation," said Hariharan.

"Flow's lean manufacturing initiatives, coupled with inventory management techniques like Kanban, have ensured reduced delivery times of less than 3 weeks," said Ruppenthal. "This has contributed to increased customer satisfaction."

Flow is synonymous with waterjet cutting globally, with customers in North America, Europe and Asia-Pacific (APAC). Boeing's 787 program, Sandisk's memory chips, and Formula One race cars, are few of the large number of applications that have benefited from Flow's waterjet solutions.

ABOUT FROST & SULLIVAN'S CUSTOMER VALUE ENHANCEMENT AWARD

The Customer Value Enhancement (CVE) Award is presented each year to the company that has best demonstrated the ability to expand the customer base, while maintaining its existing install base, with more innovative value creation and enhancement strategies than competing vendors. This Award recognizes the company's successful sales entry, customer acquisition and service strategies, and the degree to which those strategies have met customers' stated needs and requirements. Such innovation is expected to significantly improve customer interaction and contribute to customer satisfaction.

About Flow International

Flow International Corporation is the world's leading developer and manufacturer of ultrahigh-pressure waterjet technology for cutting, cleaning, and food safety applications. Flow provides state-of-the-art ultrahigh- pressure (UHP) technology to numerous industries including automotive, aerospace, job shop, surface preparation, food and dozens more. For more information, visit www.flowcorp.com.