MISCOR Group Acquires California-Based Visalia Electric Motor Shop

SOUTH BEND, Ind., Sept. 24 /PRNewswire-FirstCall/ -- Industrial services provider MISCOR Group, Ltd. (OTC Bulletin Board: MIGL.OB) today announced it has acquired the business and assets of Calif.-based Visalia Electric Motor Shop Inc, a leading repair, maintenance and overhaul provider for mission-critical motors and generators. Visalia serves an extensive roster of industry-leading customers in 14 Western states.

MISCOR (www.miscor.com) said the addition of Visalia will significantly expand its wind generation repair and maintenance capabilities of the Company's Magnetech Industrial Services subsidiary, which is part of MISCOR's Repair, Remanufacturing and Manufacturing division. Bernie DeWees, President of Magnetech Industrial Services, indicated that the Visalia facility will now support all field service and in-shop repairs in the Western United States -- home to the largest concentration of wind turbines in the world. With this acquisition, Magnetech now has nine locations nationwide.

"This acquisition helps cement our growing geographic service reach on the West Coast and will enable us to further expand our wind-related customer base while adding new customers to our core industrial services business," said John Martell, CEO of MISCOR. "With a growing presence on both coasts and an industry-leading management team located in America's heartland, our strategic growth model continues to propel us toward becoming the nation's industrial services provider of choice."

MISCOR said the Visalia acquisition will also expand the Company's ability to provide repair and maintenance services to municipalities, independent power producers, refineries, and mining and other heavy industrial customers on the West Coast. The Company added that it will support and build on Visalia's utility and heavy industrial customer base, which will provide an excellent complement to MISCOR's existing customer base.

Visalia President Gene Quesnoy said: "I am pleased to combine Visalia's business with MISCOR, as they bring a great deal of experience, institutional knowledge and growth potential to the table. In addition, their dedication to the same high standard of ethical service that has distinguished Visalia for more than 60 years puts our combined operations in a prime position to continue growing our market share in the increasingly competitive Western region."

MISCOR said Quesnoy will remain with the Company where he will focus his efforts on Visalia's technical sales and engineering support functions. Quesnoy has served as president of Visalia for the past 26 years, during which time he spearheaded a number of growth initiatives, technological investments and led Visalia's move into its current 27,000-square-foot facility. He will report to Bernie DeWees president of Magnetech Industrial Services.

In addition to offering repair and maintenance services to the growing wind generation industry, Visalia provides a wide variety of additional services, including the engineering and design of electric motors and generators, failure analysis, manufacturing form coils, performing welding services, and offering a full machine shop with 60" swing-capable lathes and 50-ton crane capacity.

The business in California will operate as Magnetech Industrial Services, Inc also dba Visalia Electric Motor Service.

About MISCOR

South Bend, Ind.-based MISCOR Group, Ltd. (OTC Bulletin Board: MIGL.OB) provides electrical and mechanical solutions to industrial, commercial and institutional customers through two segments: RRM (repair, remanufacturing and manufacturing) segment, which provides maintenance and repair services for industrial motors, generators and lifting magnets, and diesel engine component manufacturing, remanufacturing and repair services; and CES (construction and engineering services) segment, which provides a wide range of electrical and mechanical contracting services and engineering and repair services for electrical power distribution systems. In 2007, MISCOR entered the wind power industry through its acquisition of 3-D Service, Ltd., providing both onsite and in-shop maintenance and repair services for wind farms. MISCOR was ranked on the Inc. 500 in 2004 and 2005 and has grown to more than 700 employees in 15 locations nationwide.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "estimates," "expects," "intends," "should," "could," "will," or variations of such words and similar expressions are intended to identify forward-looking statements. These forward-looking statements reflect the Company's views, expectations and beliefs at the time such statements were made with respect to such matters, and may cover such items as the Company's future plans, objectives, events, contract pricing and results such as revenues, expenses, income, earnings per share, capital expenditures, operating margins, financial position, expected results of operations and other financial items. There are a number of factors, many of which are beyond the Company's control, which could cause actual results and outcomes to differ materially from those described in the forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Risk Factors") that make the timing, extent, likelihood and degree of occurrence of these matters difficult to predict. Risk Factors include, among others: price of raw materials, ability to win and service competitively priced new contracts in sufficient amounts to operate and expand effectively, employee turnover, ability to compete in highly competitive, geographically diverse marketplaces, and varying and sometimes volatile economic conditions. For further discussion of risks and uncertainties, individuals should refer to the Company's SEC filings. MISCOR Group, Ltd. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release is issued. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

SOURCE MISCOR Group, Ltd.