SOURCE: HydroFlo, Inc.

December 12, 2007 07:30 ET

HydroFlo Board Rejects Reverse Split; Announces Significant Corporate Overhaul Progress

Board Votes to Not Reverse Split Stock; Company Name to Change to SolarBrook Water and Power Corporation; Management to Aggressively Position the Company to Integrate HydroFlo Water Systems With Solar Technologies; Consolidated Corporate Audit in Final Stages and New Investor Relations Firm Is Engaged

APEX, NC--(Marketwire - December 12, 2007) - HydroFlo, Inc. (PINKSHEETS: HYRF) announced today that its Board of Directors, led by George Moore, in consultation with management and many large HydroFlo, Inc. shareholders, has decided to aggressively pursue a restructuring plan. The Board believes that the future of the world is directly linked to the efficient integration of water, one of the world's most precious resources, and solar power, one of the world's most abundant resources.

Some of the key decisions that were adopted by the Board are as follows:

--  There will not be a reverse split of the common stock.  The Board
    noted that there were significant accumulations of shares by certain
    brokerage firms and that large numbers of HYRF share blocks remain in
    relatively few hands.  The Board has decided to reject a reverse split of
    the common stock, and will instead use the Company's common stock capital
    to complete the restructuring process that was already underway and execute
    on its commitment to increase shareholder value.
--  The Company name shall immediately change to SolarBrook Water and
    Power Corporation.  The new name reflects the growing interest from
    numerous parties in the United States and from around the globe who have
    requested water treatment solutions that are integrated with leading solar
    technologies.  Given the new and growing state and national government
    incentives along with the rapid growth in efficient solar-driven power
    systems, integration of solar power with our existing water purification
    and treatment technologies is a strategy that will help us add value for
    our shareholders and act as responsible corporate citizens.
--  The Company has commissioned a leading North Carolina web design firm
    to rebuild the Company's Internet presence and corporate image.  The
    Company's new website shall be located at and is
    expected to launch in the first quarter of 2008.
--  The Board has formed a select restructuring committee that has been
    charged to analyze the Company's corporate structure, including its
    numerous subsidiary entities, and make recommendations concerning
    underperforming businesses and technologies.  The Board believes that the
    best way to unlock the value in some of its subsidiary entities may be to
    either sell assets or restructure the businesses, and hiring new and
    separate management. The Company expects to have the committee's
    recommendations by the middle of January 2008.
--  The Board has created the Solar Integration Committee.  Further
    announcements will be made in the coming weeks regarding key appointments
    to this important committee.  Members of the Solar Advisory Committee will
    be charged to work with Company management and engineers in order to apply
    leading edge solar power systems with existing products.  Additionally,
    Solar Integration Committee members will be incentivized to find new
    technologies that will allow the Company to deliver more clean water in a
    variety of applications using considerably less power than its existing
    systems require.
--  The Board has completed an internal financial audit and has
    preliminary financial statements that have been provided to its independent
    auditors.  Review of the Company's presentation is ongoing and although
    much work remains to be completed, the Board believes that the audit will
    be completed in the first quarter of 2008.

Commenting on the recent Board actions, George Moore stated, "What we have decided to do is develop and execute a strategy based on a purpose. Our purpose is two-fold: one, to always take corporate action to maximize and add shareholder value; and two, to develop systems that provide more water to more people and businesses using clean power in the most efficient way possible. Given our corporate purpose, I have developed a blue print to turn our corporate purpose into a business reality. This will take time and considerable, diverse resources. However, I am confident that the resources we require are available and accessible, and the actions we are taking will get us to where we want to be."

Mr. Moore added, "Additionally, although I recognize and appreciate that we have a very active and interested shareholder base, I also know that it is going to take our very best efforts and a lot of energy to successfully execute this program for those same shareholders. With this in mind, I needed to hire a firm that understood our vision and had the skills to effectively communicate our corporate goals to the marketplace as well as the many loyal shareholders that have a stake in our success. I have chosen Gemini Financial Communications in California to represent the Company as its I.R. representatives going forward. Andrew Beyer of Gemini Financial Communications will be the point person for HydroFlo shareholders and will field shareholder calls, distribute Company materials, arrange for regular conference calls along with other activities, all in an effort to actively communicate with people that either have or who are considering having a vested interest in our success. Over the coming months and well into 2008, we will have a lot to say to the market and I believe that Gemini Financial Communications is the right firm to help us at this time."

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.