<PAGE>

FOR IMMEDIATE RELEASE                                    CONTACT:  JAMES C. SHAY
BHA - 0304                                                 SENIOR VICE PRESIDENT
April 23, 2003                                           CHIEF FINANCIAL OFFICER
8:30 A.M. ET                                       (816) 356-8400, Extension 336


                       BHA GROUP HOLDINGS, INC. ANNOUNCES
                       RECORD SECOND QUARTER 2003 EARNINGS

For the quarter ended March 31, 2003 ("fiscal 2003"), BHA Group Holdings, Inc.'s
(NASDAQ - BHAG) consolidated net income was $3.3 million or $.52 per diluted
share. This compares to $2.7 million or $.42 per diluted share during the same
period in the prior year. For the six months ended March 31, 2003, BHA's
consolidated net income was $6.2 million or $.97 per diluted share. Excluding
the effect of a $1.2 million one-time non-cash charge relating to a change in
accounting for goodwill, net income for the same period in the prior year was
$4.4 million or $.68 per diluted share. Including the impact of the one-time
charge, net income for the first six months of the prior year was $3.2 million
or $.49 per diluted share.

Commenting on the favorable results, James E. Lund, President and Chief
Executive Officer, said, "We are pleased to report record earnings per share for
our second quarter. These results surpassed our expectation as gross margins
during the period were higher than initial estimates. Higher gross margins for
the quarter were primarily attributable to a favorable sales mix in both the
areas of electrostatic precipitator (ESP) replacement parts and service and the
ePTFE membrane business. Improved production efficiencies and lower
manufacturing costs also contributed to the increase in margins. It is the
strength in these areas of our business that has largely offset the continued
weakness in U.S. and international sales of fabric filter replacement parts and
services."

The following table summarizes BHA's revenues and pre-tax income by segment
(dollars in millions):

<TABLE>
<CAPTION>
                                                               QUARTER ENDED                    SIX MONTHS ENDED
                                                                 MARCH 31,                          MARCH 31,
                                                           2003             2002              2003             2002
                                                           ----             ----              ----             ----
<S>                                                         <C>               <C>              <C>               <C>
REVENUES
Domestic Air Pollution Control (APC) Segment
     U.S. Fabric Filter                                     19.7              20.3             36.8              39.3
     U.S. Electrostatic Precipitator (ESP)                  16.4              14.9             36.8              23.7
     U.S. Exports to Latin America and Asia                  3.6               4.7              6.9               9.3
                                                          ------            ------           ------           -------
         Total Domestic APC Segment                         39.7              39.9             80.5              72.3
Europe APC Segment                                           5.9               5.6             11.3              10.9
BHA Technologies Segment                                     3.1               3.1              7.0               6.3
                                                          ------            ------           ------           -------
     TOTAL REVENUES                                         48.7              48.6             98.8              89.5
                                                          ======            ======           ======           =======

PRE-TAX EARNINGS
Domestic APC Segment                                         4.2               3.6              8.2               6.1
Europe APC Segment                                           -                 0.3             (0.2)              0.2
BHA Technologies Segment                                     0.8               0.3              1.3               0.5
                                                          ------            ------           ------           -------
     TOTAL PRE-TAX EARNINGS                                  5.0               4.2              9.3               6.8
                                                          ======            ======           ======           =======
</TABLE>

<PAGE>

REVENUES

Consolidated revenues for the six months increased 10% over the prior year.
Revenues for the Domestic Air Pollution Control (APC) segment increased 11% led
by higher sales of ESP replacement parts and services to customers in the
electric utility industry. Sales of ESP parts and services tend to be seasonal
with the majority of revenues being generated during the first six months of the
Company's fiscal year. This period corresponds with the timeframe for the spring
outages scheduled by coal-fired electric utilities. Revenues in this area for
the first six months are not indicative of results to be expected for a full
year. The increase in sales for the ESP portion of the Domestic APC segment was
offset in part by a decline in sales of fabric filter replacement parts in the
U.S. and export markets which correspond to the continued weakness in the
manufacturing sector of those economies. On a U.S. dollar basis, Europe APC
segment sales for the six-month period rose 4% over the prior year. On a local
currency basis, sales in Europe declined 10% due to challenging business
conditions. BHA Technologies' sales to third parties increased by 11% for the
six-month period over the prior year due in large part to continued success in
selling membrane products for use in non-consumer apparel applications.

Consolidated revenues for the quarter were essentially unchanged as compared to
the prior year. For the quarter, overall sales in the Domestic Air Pollution
Control (APC) segment decreased by less than 1% as compared to prior year.
Within this segment, however, sales of fabric filter parts and services declined
by $0.6 million or 3% and sales of ESP parts and services increased by $1.5
million or 10% over the prior year. Export sales of APC parts and services
within the Domestic APC segment declined by $1.1 million or 23%. Quarterly sales
for the Europe APC and BHA Technologies segments increased over the prior year
by 4% and 3%, respectively.

PRE-TAX EARNINGS

For the first six months of the current fiscal year, earnings before taxes and
the one-time charge increased $2.5 million or 37% as compared to the prior year.
The strong results were attributable to the combination of revenues increasing
by 10% and operating margins as a percentage of sales increasing from 8.0% in
fiscal 2002 to 9.7% in fiscal 2003. The improvement in operating margins was due
to both higher gross margins and lower operating expenses as a percentage of
sales.

Pre-tax earnings for the second quarter increased 19% to $5.0 million as
compared to $4.2 million in the same period of the prior year. Gross margin as a
percentage of sales for the most recent quarter was 32.4%. This compares to
30.7% for the same period in the prior fiscal year. The improvement in gross
margin percentage was attributable to a more favorable mix of business, lower
manufacturing overheads and higher efficiency in plant utilization.

INCOME TAXES

The Company's consolidated effective income tax rate was 33.0% for the six
months ended March 31, 2003 compared to 35.6% for the same period in the prior
year. The final consolidated effective income tax rate for the twelve months
ended September 30, 2002 was 33.4%.

CASH FLOWS

For the first six months of fiscal 2003, the Company generated $6.0 million in
cash flows from operations compared to $6.5 million generated during the same
period in the prior year. During the current year, cash flows from operations
were used to fund capital expenditures of $2.0 million, pay a cash dividend of
$0.7 million and repurchase treasury shares for $0.7 million.

BACKLOG

BHA's backlog was $51.3 million at March 31, 2003. This compares with order
backlogs of $47.5 million at December 31, 2002 and $43.5 million at March 31,
2002.

<PAGE>

OUTLOOK

The Company continues to see success in the implementation of its business plan.
The financial condition of BHA has been further strengthened over the last 24
months providing the Company with substantial capital to invest in growth areas
and improve its overall position in the key markets it serves. During this
period, the Company has invested in those areas that it believes will provide
the greatest advantage in the long term. The Company believes that its
businesses are diversified and that it is positioned well to achieve its
long-term financial goals.

The record earnings for the first six-months of the current fiscal year have
been driven by sales increases of both ESP replacement parts and service work
for electric utility customers and ePTFE membranes to customers outside of air
pollution control. The strength in these areas has been partially offset by the
decline in the Company's worldwide fabric filter business. The weakness in
fabric filter aftermarket sales is expected to continue and, based on historical
trending, a profit recovery in this area will likely trail an overall
improvement in manufacturing conditions by as much as six months.

For the first six-months of the current fiscal year, fifty percent of the
Company's APC revenues in the U.S. were derived from the ESP business. This is
not in line with the Company's historical trend or its expectation for full year
results. Consistent with previous years, the Company expects that ESP
replacement parts and service sales for the last six months of the fiscal year
will be lower than the first six months. Due to the timing of order execution,
the Company expects that ESP replacement parts and service sales for the last
six months of the current year will be less than the prior year.

The Company believes it is well positioned to have long-term success in all of
its businesses. Near-term quarterly results are expected to be heavily
influenced by the timing of the receipt and execution of ESP rebuild orders and
ePTFE membrane sales to customers in applications outside of air pollution
control. One of the Company's goals is to deliver consistent annual earnings
growth over time. The Company expects, however, that near-term quarterly
earnings will continue to vary based on the timing of larger orders.

The results for the first six-months of the current year have positioned the
Company to achieve its internal financial goals for the year. For the remainder
of the current fiscal year, the focus will be on expanding growth areas while
managing the cost side of its business to position the Company for incremental
profit growth during fiscal 2004 and beyond. With respect to the upcoming
quarter, the following is specific guidance being provided:

   o   For the third quarter of fiscal 2003, the Company anticipates that
       consolidated net sales will be lower than the same period in the prior
       year by as much as 5%.

   o   Earnings for the third quarter of fiscal 2003 are expected to be in the
       range of $.23 to $.28 per diluted share as compared to $.32 reported
       for the same period in the prior year.

   o   If the Company achieves the earnings targets included in the stated
       range, its nine-month earnings per diluted share will be in the range
       of $1.20 to $1.25. This compares favorably to $1.00 per diluted share
       earned for the first nine months of last year.

OTHER ACTIONS

The Company reports that it has accumulated 2.6 million shares of the 4.0
million shares of BHA common stock authorized by its Board of Directors for
repurchase.

BHA Group Holdings, Inc. is a world leader in innovative filtration technology.
Its two principal operating subsidiaries are BHA Group, Inc., the world's
largest supplier of replacement parts and services for industrial air pollution
control systems, and BHA Technologies, Inc., which manufactures and markets
expanded polytetrafluoroethylene (ePTFE) membrane products for use in a variety
of industrial and consumer products.

<PAGE>

This press release contains forward-looking statements that reflect the
Company's current views with respect to future events and financial performance.
These statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from historical results or those
anticipated. The words "should," "believe," "anticipate," "expect," and other
expressions that indicate future events and trends identify forward-looking
statements. Actual future results and trends may differ materially from
historical results or those anticipated depending on a variety of factors,
including, but not limited to, the performance of newly established domestic and
international operations, demand and price for the Company's products and
services, and other factors. You should also consult the sections entitled
"Factors Affecting Earnings and Stock Price" and "Management's Discussion and
Analysis" included in the Company's report on Form 10-K which was filed with the
Securities & Exchange Commission on November 6, 2002.



<PAGE>

                            BHA GROUP HOLDINGS, INC.
                   CONDENSED CONSOLIDATED STATEMENT OF INCOME
                                & BALANCE SHEETS
                     (IN MILLIONS EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                                QUARTER ENDED                    SIX MONTHS ENDED
                                                                  MARCH 31                           MARCH 31
                                                            2003             2002              2003             2002
                                                            ----             ----              ----             ----
<S>                                                        <C>               <C>              <C>               <C>
Net sales                                                  $ 48.7            $ 48.6           $ 98.8            $ 89.5
                                                           ------            ------           ------            ------
Gross margin                                                 15.8              14.9             31.0              27.3
Operating expense                                            10.7              10.5             21.4              20.1
Interest expense, net                                          .1                .2               .3                .4
                                                           ------            ------           ------            ------
Earnings before income taxes                                  5.0               4.2              9.3               6.8
Income tax expense                                            1.7               1.5              3.1               2.4
Cumulative effect of accounting change                         --                --               --              (1.2)
                                                           ------            ------           ------            ------
Net income                                                 $  3.3            $  2.7           $  6.2            $  3.2
                                                           ======            ======           ======            ======
Diluted shares outstanding                                    6.5               6.4              6.4               6.4
                                                           ======            ======           ======            ======
Diluted earnings per share                                 $ 0.52            $ 0.42           $ 0.97            $ 0.49
                                                           ======            ======           ======            ======
Diluted earnings per share excluding
     effect of accounting change (a)                       $ 0.52            $ 0.42           $ 0.97            $ 0.68
                                                           ======            ======           ======            ======

Depreciation and amortization                              $  1.5            $  1.3           $  3.0            $  2.6
                                                           ======            ======           ======            ======
</TABLE>


(a)  During fiscal 2002, the Company adopted Statement of Accounting Standards
     No. 142, "Accounting for Goodwill and Other Intangible Assets." As a
     result, the Company no longer recognizes amortization expense on intangible
     assets with indefinite lives.

The earnings per share figures in this press release are computed on a "diluted"
basis as defined under Statement of Financial Accounting Standards No. 128,
"Earnings per Share."

<TABLE>
<CAPTION>
                                                          MARCH 31,             SEPTEMBER 30,
                                                            2003                     2002
                                                            ----                     ----
<S>                                                     <C>                      <C>
Cash and equivalents                                    $   16.1                 $   13.8
Accounts receivable                                         29.7                     28.6
Inventories                                                 24.7                     24.2
Other current assets                                         5.6                      5.5
                                                        --------                 --------
     Total current assets                                   76.1                     72.1
PP&E and other assets                                       40.5                     41.4
                                                        --------                 --------
Total assets                                            $  116.6                 $  113.5
                                                        ========                 ========

Current debt and lease payments                         $    2.4                 $    2.5
Accounts payable and accruals                               21.6                     23.1
                                                        --------                 --------
     Total current liabilities                              24.0                     25.6
Long-term debt and capital leases                           17.4                     17.8
Other liabilities                                            2.7                      2.7
                                                        --------                 --------
Total liabilities                                           44.1                     46.1
Equity                                                      72.5                     67.4
                                                        --------                 --------
Total liabilities and equity                            $  116.6                 $  113.5
                                                        ========                 ========
</TABLE>



                                       ###



