SOURCE: HydroFlo, Inc.

September 30, 2005 08:30 ET

HydroFlo Files Extension for Filing of Annual Report to Allow for New Asset Valuation in Wake of $42 Million MARTI Agreement

RALEIGH, NC -- (MARKET WIRE) -- September 30, 2005 -- HydroFlo, Inc. (OTC BB: HYRF) CEO Dennis Mast today issued a comment regarding the Company's Notice of a Late Filing of Form 10-K filed on September 28, 2005. As a result of the recent two-year $42 million agreement that portfolio company Metals & Arsenic Removal Technology, Inc. (MARTI) received from a Chinese distribution company, HydroFlo's Board of Directors believes that the Company should seek a new independent valuation of the Company's portfolio assets.

"An agreement of this magnitude, which we have valued at over $210 million over the next two years, is so significant that the Board feels that an independent valuation of our portfolio assets is in order before our Annual Report is filed," stated Mr. Mast. "While it is clear that the contract will significantly increase the value of MARTI, the Board would like an independent verification before we calculate how much our per share net asset value has grown."

"The Notice of a Late Filing gives the Company an additional 15 days to submit the 10-K without consequence, and we expect to have the valuation completed in time to include in this Annual Report," added Mr. Mast.

About HydroFlo

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 is to locate, develop, and fund innovative technologies and businesses and utilize these acquisitions to make pure water available to the world by means of disinfection, purification, and removal of contaminants. It is our belief that water can overcome hunger, disease, poverty, and improve the overall quality of life on earth.

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

  • Contact:
    HydroFlo, Inc.
    Rebecca Morgan
    Investor Relations
    Email Contact
    919-772-9925