SOURCE: HydroFlo, Inc.

June 02, 2005 08:30 ET

HydroFlo Water Treatment Unveils New Industrial Treatment System

Unit Proven More Energy and Cost Efficient Than Current Competitors

RALEIGH, NC -- (MARKET WIRE) -- June 2, 2005 -- HydroFlo Water Treatment, Inc. (HWTI), a portfolio company of HydroFlo, Inc. (OTC BB: HYRF), introduced the HydroFlo Dissolved Air Flotation (HDAF) Unit. These waste systems will provide a more effective and efficient means of removal of solids from wastewater by injection of extremely fine air bubbles. These bubbles become attached to the suspended material and rise to the surface for subsequent mechanical removal. In this process, the removal of fine suspended material from water is achieved.

The conventional DAF saturation design uses a recycle water pump combined with a saturation vessel and air compressor to dissolve air into the water. This type of system, while effective, is expensive in terms of initial equipment cost, and is labor and energy intensive. This conventional design is slow to recover and can upset the flotation process in the DAF. Air transfer efficiency is only 9% at 80% entrainment.

A second configuration that has come into more recent use includes the use of a cavitational pump for the introduction of air into the water. This design simplifies the DAF process, requires less startup time, less capital cost, instrumentation, labor and maintenance. Transfer efficiencies higher than those found in conventional DAF are also realized; however, this system has the flaws in that high speed cavitational pumps are expensive, subject to high horsepower requirements and are also subject to excessive wear if the wastewater contains abrasive materials such as diatomaceous earth or sand. In addition, this process typically uses between 10 to 30 percent recycled water in order to obtain the desired results.

Tom Barbee, Chief Operating Officer of HWTI, explained, "The new HDAF system can offer customers competitive costs and lower maintenance while providing an extremely energy efficient process for waste removal. I am excited to bring such an innovative product to the DAF market."

The HDAF Unit has been tested thoroughly and compared side-by-side to a leading market competitor at a national poultry processing facility. While the competitor's unit utilizes high volumes and high pressures to create their flow, HWTI has completely improved upon these conventional DAF systems by creating a pump that requires less horsepower, greater operation and process efficiencies. HydroFlo's high-density micro-bubble aeration device is coupled with a lower horsepower pump to reduce costs while maximizing solids removal, and revolutionizes the DAF process. Another substantial benefit of using the HDAF system includes minimal reintroduction of the recycle water as compared to its predecessors, thereby, improving the hydraulic performance of the DAF unit as well as the energy efficiency of the system.

Experience to date indicates that the HDAF consistently utilizes a smaller system pump, reducing horsepower requirements to 40 to 60 percent less than that needed to operate conventional cavitational pumping systems. This equates to lower operational costs while, at the same time, delivering a greater volume of air per gallon of recycle. The HDAF system may be coupled with a variety of pumps and material alloys tailored for corrosive/erosive conditions and providing extended product life.

"HydroFlo portfolio companies continue to introduce exceptional and ground-breaking products and processes," commented Dennis Mast, CEO of HydroFlo, Inc. "The HDAF is the next level of performance in a market that has for far too long been conventional. We look forward to offering this and many more exciting products to our current and future customers."

A typical HydroFlo HDAF application, attached to a complete system is illustrated.

   DAF Process Characteristics                  HydroFlo     Competition

   Greatest Air Volume / Cu. Ft. of Water       Yes          No
   Smallest Pump Size                           Yes          No
   Least System Components                      Yes          No
   Minimum Power Usage                          Yes          No
   Best Overall System Efficiency               Yes          No
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.

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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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