Flow International 10-Q 2010 Q1 Quarterly report

Exhibit 99.1

DEBT COVENANT COMPLIANCE
AS OF JULY 31, 2009

Consolidated Adjusted EBITDA:

(in 000s)	LTM(i)			Q2 FY09		Q3 FY09			Q4 FY09			Q1 FY10
Net Income	$	(33,968	)	$	412	$	(21,363	)	$	(4,471	)	$	(8,546	)
Add Back:
Depreciation and Amortization		4,525			1,047		1,113			1,133			1,232
Income Tax Provision (Benefit)		(11,500	)		2,162		(11,106	)		(1,950	)		(606	)
Interest Charges		2,396			161		328			943			964
Non-Cash Charges		4,403			1,538		1,210			1,492			163
Allowable Add backs Pursuant to Credit Facility Agreement, as amended		42,502			404		32,064			4,336			5,698
Consolidated Adjusted EBITDA	$	8,358		$	5,724	$	2,246		$	1,483		$	(1,095	)
I. Consolidated Leverage Ratio
A. Total Long-Term Obligations and Notes Payable (ii)	$	25,291
B. Consolidated Adjusted EBITDA	$	8,358
C. Consolidated Leverage Ratio (Line I.A ÷ Line I.B)		3.03
Maximum Permitted	3.25x to 1
II. Liquidity Test
Book Value of Consolidated Accounts Receivable at 65%	$	20,225
Book Value of Consolidated Inventory at 40%	$	8,108
A.	$	28,333
B. Total Long-Term Obligations and Notes Payable (ii)	$	25,291
(Line II.A) must be greater than (Line II. B)	Yes
III. Consolidated Fixed Charge Coverage Ratio (i)
A. Consolidated Adjusted EBITDA
1 Consolidated Net Income	$	(33,968	)
2 Consolidated Interest Charges	$	2,396
3 Provision for income taxes	$	(11,500	)
4 Depreciation expenses	$	4,173
5 Amortization expenses	$	352
6 Non-recurring non-cash reductions of Consolidated Net Income	$	4,403
7 Allowable Add backs Pursuant to Credit Facility Agreement, as amended	$	42,502
8 Consolidated Adjusted EBITDA (Lines III.A.1 + 2 + 3 + 4 + 5 + 6 + 7)	$	8,358
B. Cash payments for taxes	$	1,870
C. Maintenance Capital Expenditures	$	2,000
D. Consolidated Interest Charges (except non-cash interest)	$	968
E. Current portion of other long term debt (iii)	$	648
F. Consolidated Fixed Charge Coverage Ratio ((Line III.A.8 - Line III.B — Line III.C) / (Line III.D + Line III.E)		2.8
Minimum required	2.0x to 1

Notes:
(i)	Last Twelve Months (Most Recent Four Fiscal Quarters)
(ii)	Includes letters of credit of $7.4 million and excludes subordinated debt
(iii)	Represents current portion of other long-term debt as of July 31, 2009