SOURCE: HydroFlo, Inc.

September 20, 2007 15:45 ET

Chinese Testing Agency Completes Initial CodeBlue™ Performance Tests

APEX, NC--(Marketwire - September 20, 2007) - HydroFlo, Inc. (PINKSHEETS: HYRF) announced today that its MARTI subsidiary has now received the initial independent test results for tests completed by the China National Centre for Quality Supervision and Test of Processed Food organization (NCQST). This organization is responsible for a broad spectrum of testing and certification for products submitted for sales within the Chinese market. Certification is a prerequisite step for all firms that wish to sell food and consumer health-related products domestically. The test was originally commissioned by CEIEC, a large Chinese conglomerate, for the planned sale throughout mainland China of the CodeBlue™ point-of-use pitcher system, marketed exclusively by one of MARTI's distributors.

The test results confirmed that the CodeBlue™ system met or exceeded all of the original design performance parameters, which included four (4) tests for "Sensory Properties" (Color, Odor, Taste, etc.), twenty-four (24) tests for "Chemical Indicators" (Arsenic, Mercury, Lead, etc.), and three (3) tests for microbes (Bacteria, etc.). Though not designed for biologically unsafe water, one of the three microbe tests indicated results outside of specified limits. The source of these microbes is currently unknown without further analysis.

The filters tested had been provided to CEIEC in October 2006, however the tests were not conducted until May of 2007, based on information provided with the test summary. MARTI's distributor has requested assistance in resolving the discrepancy in this one test, however, no additional information on the storage, handling, or processing of these filters through the Chinese test protocol has been made available to date. Resolution of this test will require this additional information, further analysis and the combined efforts of MARTI's distributor and their client, CEIEC, to determine the next steps in commissioning this system for sale throughout mainland China.

As HydroFlo CEO George Moore commented, "Although we are concerned at the length of time it took to get the results of these tests, we are pleased that the CodeBlue™ system performed as designed, and we have pledged to continue to support our distributor in their efforts to complete certification of this system for the Chinese market."

HydroFlo, Inc. is headquartered in Apex, North Carolina. HydroFlo's core focus is to seek out synergistic business opportunities that will provide capital appreciation and income for its portfolio companies through the acquisition, development and commercialization of innovative technologies and processes that will improve the quality of water throughout the world by means of detection, treatment and removal of contaminants. For more information, please visit www.hydroflo.us.

Forward-Looking Statements

Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.