SOURCE: HydroFlo, Inc.

June 23, 2006 14:14 ET

HydroFlo Water Treatment Plus™ System Provides Accelerated ROI

APEX, NC -- (MARKET WIRE) -- June 23, 2006 -- A progressive seaside community located in Northern California, experienced extreme corrosion and Hydrogen Sulfide odors in its force main collection system. The force main traveled through upscale neighborhoods and included several inverts where, if uncontrolled, corrosive and toxic hydrogen sulfide would collect and be detected by the local homeowners, generating complaints. The dilemma faced by the County-operated collection facility was that in order to control the odors and corrosion, it was required to add costly chemicals to the waste water.

The force main requiring treatment conveyed an average flow rate of 8.5 million gallons per day over a distance of approximately 4 miles. While chemicals historically had been the least expensive method to control odors and corrosion for the community, costs typically ran in excess of $1,000 per day. Since purchasing the HydroFlo Water Treatment Plus™ System, the municipality's net operations and maintenance costs have been reduced by approximately $14,000-$20,000 per month, allowing for a ROI of less than 1 year.

About HydroFlo

HydroFlo (PINKSHEETS: HYRF) (http://www.hydroflo.us) is a Business Development Company, as defined by the Investment Act of 1940. Headquartered in Apex, 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 clean water can overcome hunger, disease, poverty, and improve the overall 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.

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