NEWS RELEASE                          CONTACT:
JANUARY 19, 1998                      MATRIX SERVICE COMPANY
MATRIX SERVICE COMPANY                C. WILLIAM LEE
(NASDAQ: MTRX)                        VICE PRESIDENT - FINANCE
10701 E. UTE STREET                   (918) 838-8822
TULSA, OK 74116

TULSA, OKLAHOMA January 19, 1998 - Matrix Service Company (NASDAQ: MTRX)
and ITEQ, Inc. (NASDAQ:ITEQ) announced today that the companies have mutually
agreed to terminate the purchase agreement entered into on December 16, 1997
due to unanticipated difficulties in connection with the expected integration
of personnel from divergent corporate cultures.  The Board of Directors of
both companies had approved an agreement whereby ITEQ was to have acquired
Matrix subject to certain conditions including shareholder and regulatory
approval.

Matrix Service Company provides specialized on-site maintenance and
construction services for petroleum refining and storage facilities and water
storage tanks and systems for the municipal and private industry sector.  The
company is headquartered in Tulsa, Oklahoma with regional operating facilities
located in Oklahoma, Texas, California, Michigan, Pennsylvania, Washington,
Georgia, Delaware in the U.S. and Canada.

ITEQ, Inc. is a rapidly growing provider of manufactured equipment, engineered
systems and servcies used in the processing, treatment, storage and movement
of gases and liquids.  The company operates worldwide providing products and
services to a broad base of industrial customers.

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