Flow International Corporation

Compounding our Advantage

Investor Presentation
March 2011

Flow International Corporation

Flow Confidential 1 Flow Confidential

This presentation contains forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including positioning for and delivery of growth, the outlook for revenue, income and operating margins, the ability to adjust prices, expected investments in sales and personnel initiatives, addressable markets, the Companys competitive advantages, the Companys customer access, growth of the indirect distribution channel, the position of manufacturing resources, new information technology capabilities, and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation.

Flow International Corporation is

a global technology-based company

committed to providing a world-class customer experience cutting and cleaning solutions

providing customer-driven waterjet capable of consistently delivering

profitable, dynamic growth

30+%* market share of the global waterjet shapecutting market Twice the share of next largest competitor Reported fiscal 2010 annual revenue of $173.7 million and YTD Q3 fiscal 2011 revenue of $157.0 million Four times* the next largest competitors waterjet related revenue More than one-half from outside North America Significant portion of revenue is a recurring stream from existing customers One-third of revenue is high margin spare parts business Many customers return for additional waterjet machines Over 10,000 installations have run more than 70 million hours in over 45 countries

* Based on internal estimate by Flow

4

Flow Waterjets can cut virtually any solid material including: stone, tile, glass, metal, foam, rubber, plastic, and food

$57,473 $52,935 $48,604 $45,356 $42,037 $37,752 $46,580

37.0%

39.6%

40.2%

41.5% 39.0%

37.5%

40.2%

4.9% (7.3)%
Q1FY10 Dollars in thousands

(0.6)%

(0.6)%

1.1%

1.4%

1.6%

Q2FY10 Sales

Q3FY10 Gross Margin %

Q4FY10

Q1FY11

Q2FY11

Q3FY11

Pro Forma Operating Income Margin *

* Pro Forma Operating Income Margin for the fiscal quarters presented excludes Restructuring and Other Operating Charges of $4.8M, and a gain of $600k in Q1 FY10, and Q2 FY10, respectively. There were no other adjustments for other periods presented.
6

$57,473 $52,935 $48,604 $45,356 $42,037 $37,752 $46,580

$4,926 $2,302 $(1,095)

Q1FY10
Dollars in thousands

$1,773

$2,895

$2,938

$3,114

Q2FY10

Q3FY10
Sales

Q4FY10
EBITDA

Q1FY11

Q2FY11

Q3FY11

Summary in Millions
For the Fiscal Period Ending Revenue Cost of Goods Sold Gross Margin 3 months Jan-31-2010 $ 45.4 27.1 18.2 3 months Oct-31-2010 $ 52.9 33.1 19.9 3 months Jan-31-2011 $ 57.5 34.4 23.1

Gross Margin%
Operating Expenses Operating Income Other Expense Income Tax Benefit (Provision) Income (Loss) from Continuing Operations Net Income (Loss) Basic EPS Net Income (Loss) Weighted Avg. Basic Shares

40.2%
18.5 (0.3) (1.6) 1.1 (0.8) (0.7)

37.5%
19.0 0.9 (0.3) (0.8) (0.2) (0.3)

40.2%
20.3 2.8 (0.5) (1.1) 1.3 1.2

(0.02) 46.9

(0.01) 47.2

0.03 47.3

Q3 FY11 Results:
Revenue of $57.5 million, a 27% increase versus Q2 FY10, and 9% sequential increase from Q2 FY11 revenue of $52.9 million Operating profit of $2.8 million, fourth consecutive quarter of operating profit Net Income of $1.2 million, or $0.03 per share
The first time in over two years that the Company has reported significant net income from operations

Adjusted EBITDA of $4.9 million for the quarter Established a new 3-year Credit Facility with significantly more favorable terms based on the strength of our current credit profile

Going Forward
Q4 FY11 Outlook:
Revenue range: $57 million to $59 million, stable to modest sequential growth Operating income range: $1.5 million to $2.5 million Net income range: $500k to $1 million

Margin Pressures
The waterjet category has historically been able to raise prices to pass through significant inflationary pressures

Incremental Investments in Business

Expect to make selected investments in sales and personnel initiatives in Q4 FY11 and Q1 FY12 to drive growth Funded through operations so operating leverage opportunity not compromised

10

$6 to $8 Billion* Global Machine Tool Shape Cutting Market

Other 8% EDM 13% Plasma 9%

Waterjets 5%*

Laser 65%

* Based on internal estimate by Flow

11

Awareness & Acceptance

Adoption

Opportunity: Broader Product Line & Easy Access to it

1980

Abrasive Waterjet 83 55,000 PSI 84

1990

Integrated Product 96

2000
60,000 PSI 98

Dynamic Waterjet 01

2010

87,000 Dynamic XD & PSI Mach Series 06 09

12

THE OPPORTUNITY

FLOWS ADVANTAGES
Best & Broadest Product Line

WATERJETS
High Awareness
Low Adoption High Recurring Revenue

Unmatched Customer Access Break-Through Product Development Low Cost Manufacturing & Supply Chain Op Ex Leverage Opportunity

Disruptive Technology

13

Custom engineered solutions POC accounting with long lead times (as much as 18 to 24 months) Price Points from $400,000 to multi-millions Gross Margins in the 30% range plus or minus 5 points

14

Virtually no customization Includes three market segments: Economy, Standard, and Production to denote good, better, and best

Price points: From less than $100k to over $400k

Standard system Gross Margins in the 40% range Includes spare parts business with Gross Margins in the mid to upper 40% range

15

Fiscal 2010 Total Revenue ($174MM)

YTD Q3 Fiscal 2011 Total Revenue ($157MM)

Spares 33% Advanced Systems 20%

Standard Systems 47%

Spares 33% Advanced Systems 14%

Standard Systems 53%

16

Advanced

Source of leading technology

Production

Standard

Early Adopters: Historical source of customers; Flows global leadership provides scale and low cost

T e c h n o l o g y

G r o w t h

Economy

Later Adopters: New source of customers as category awareness grows

17

Economy

Standard

Production

18

Revolutionary Mach 4 Production Segment Product: Dynamic XD

New 3D cutting capability cuts angles up to 60 degrees Applies Flows Dynamic cutting software to 3D Faster and more versatile Opens up new cutting applications

19

Plasma Cutter: Very rough cut with heat affected zone requiring secondary grinding

Dynamic XD provides clean cut on sharp angle with no secondary grinding

20

Best and largest Direct Sales Channel took 25 years to build worldwide

Advanced
Historically augmented by approximately 30 third party sales agents and distributors globally

Production

Emphasis on higher priced products Full second channel of distribution built recently: distributors and sales agents to work with dedicated sales team
Now more than 70 partners worldwide

Standard

Economy

Emphasis on mid to lower priced products

21

Fiscal 2010 Revenue ($174MM)

Spares 33%

Standard Systems (Direct Sales) 31%

16% Standard Systems (Indirect Sales)

Advanced Systems 20%

22

Direct Sales Channel

Over 70 Flow Employees

Channel Cooperation

Indirect Sales Channel Over 70 Distributors & Agents

Support of Both Channels From More Than 200 Flow Employees Providing Field Technical Service and Local Customer Service

23

Lean Enterprise Value Stream initiatives to increase efficiency

Ability to scale in a low cost fashion without adding significant fixed costs

24

T O D A Y

Current sales rate establishes Flow as the world leader in this segment Roll out global launch

2 0

1 0
2 0 0 9
2 0 0 8

Sell product in more than 25 countries

Design product line combining Dardi tables with Flow pumps and controls Launch to first markets in August Identified Economy Segment Opportunity

Established relationship with Economy world leader: Dardi in China Purchased minority ownership position in Dardi by year end 2008

25

Entirely new hardware, software and network systems now fully operational Foundational building blocks for new ERP system designed and in place Core processes re-engineered ready for new system New ERP system rollout began with Europe live in October 2009 and U.S online in the first quarter of Fiscal 2011 Rollout to other locations will continue through remainder of fiscal 2011 and fiscal 2012

26

Profitability scenarios at three revenue levels: $210, $250 and $300 million
$300,000

$250,000 $210,000

12%

8% 5%

$210 Million Sales

$250 Million Sales Potential Sales Operating Income

$300 Million Sales

Dollars in Thousands

Anticipate making selected investments in sales and personnel initiatives to be funded through operations so operating leverage opportunity not compromised Operating Margins expected in the 5% to 12% range at these levels EBITDA potential of $20 to $40 million plus range in the various scenarios

27

Continue to Build Momentum

Quarter over quarter sequential growth in revenue and income on a modest, consistent upward trajectory Further investments in sales and personnel initiatives to be funded through operations so operating leverage opportunity not compromised Broadest product line in the industry has been established
Technology leadership and superior performance at every price point

Strong execution of strategic projects

Break-through new products are selling well Global indirect distribution channel initiative is working Low cost manufacturing is in place Supplier relationships are enhancing market position Totally new information infrastructure and ERP system is rolling out Category ripe for growth Significant leadership position for Flow Meaningful recurring revenue stream and EBITDA Operating leverage opportunity Manufacturing capacity and resources in place to support significant growth Long-term credit facility in place to augment working capital needs

Attractive long term situation and position

28

Flow International Corporation

Compounding our Advantage
Investor Presentation
March 2011

Flow International Corporation

Flow Confidential Flow Confidential 29