SOURCE: HydroFlo, Inc.

September 16, 2005 08:00 ET

Federal Government to Allocate Billions to Restore Water Supply as the Primary Goal in Relief Effort

RALEIGH, NC -- (MARKET WIRE) -- September 16, 2005 -- HydroFlo Water Treatment, Inc. (HWTI), a portfolio company of HydroFlo, Inc. (OTC BB: HYRF), announced the company will consult with Federal, State and Local officials in an effort to restore sewer treatment and water supply throughout the Hurricane-ravaged areas in the Gulf Region. The Company, through lobbying firm mCapitol, has made contact with several government officials to expedite the distribution of water filtration systems and consulting services to enable local municipalities to restore basic sanitary living conditions.

Dennis Mast of HydroFlo stated, "We have already contacted Federal, State and Local officials, and we are contributing all the resources at our disposal to assist in the relief effort. Our investors should know that John Milne is doing all he can to secure a portion of the $100 billion that is being made available for disaster relief."

The president last night spoke of the immediate need to restore the basic necessities such as sewer and water to local municipalities. In order to restore the infrastructure and to return residents to their homes and business places, there must clean potable water and a means of maintaining a secure abundant supply. HydroFlo has committed to supplying 5,000 drinking water filtration units for the victims of Hurricane Katrina.

The toxicity of the floodwaters is one of the key elements of concern for officials in the Gulf Region. Based on a recent news report by the Associated Press, Concerns Grow About Toxic Floodwaters, first response organizations such as the Department of Health, the Centers for Disease and Prevention, and the Federal Emergency Management Agency have determined that. "The floodwaters are thick with sewage-related bacteria that are at least 10 times higher than acceptable safety limits. [They] contain E. coli, certain viruses and a type of cholera-like bacteria."

According to Dennis L. Mast, Chief Executive Officer of HydroFlo, ARTI-64™, the patented MARTI water filtration technology, reduces many of these bacteria in water making it safer for human consumption. He explained the company's commitment to the victims of Hurricane Katrina. "I am extremely concerned for the health and well-being of the people in the Gulf Region who have been stricken by this devastating event. I have personally lived through 5 hurricanes, and I know what type of damage a storm of Katrina's magnitude can have on the lives of families and individuals. I am honored to be able to offer these services to our fellow citizens during this horrific crisis."

Metals & Arsenic Removal Technology, Inc. (MARTI) is an international provider of water treatment solutions, treating water for industrial, municipal and residential customers. MARTI markets, designs, builds, and installs water filtration and treatment systems for the removal of arsenic in drinking water. Water contaminated with bacteria, viruses and poisonous toxins is killing people. The ARTI-64™ media combination is one of the most effective methods to eliminate and reduce these pollutants in order to provide clean potable water to the world.

HydroFlo Water Treatment, Inc. (HWTI) is an international provider of wastewater treatment solutions for industrial and governmental customers. HWTI designs, builds, and installs equipment used for pre-treatment of wastewater within sewers and pressure collection systems. The Company was founded in 1999 and provides equipment to end users and Original Equipment Manufacturers throughout the United States and Europe. The Company provides a full range of related services to companies and municipalities to treat their wastewater at the treatment plant by the use of the energy efficient aeration systems in treatment lagoons.

HydroFlo (http://www.hydroflo.us) is a Business Development Company, as defined by the Investment Act of 1940. Headquartered in Raleigh, North Carolina, HydroFlo's core focus is to seek out synergistic acquisitions that will provide capital appreciation and income from its portfolio companies. The mission of HydroFlo, Inc. is to acquire and develop innovative technologies and businesses that will improve the quality of water throughout the world by means of detection, treatment, and removal of contaminants. By so doing, our most precious resource can be rendered safe and abundantly available for all future generations, and thereby, improve the quality of life on Earth.

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.

Contact Information

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    HydroFlo, Inc.
    Rebecca Morgan
    Investor Relations
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    919-772-9925