SOURCE: HydroFlo, Inc.

March 17, 2005 08:45 ET

Metals & Arsenic Removal Technology Signs Distribution Agreement(s) With Kelly International

RALEIGH, NC -- (MARKET WIRE) -- March 17, 2005 -- HydroFlo, Inc. (OTC BB: HYRF) today announced that its portfolio company, Metals & Arsenic Removal Technology, Inc. (MARTI) has executed a commercial agreement as referenced in the release in October announcing the signing of the letter of intent to do so, with Kelly International (KELLY). KELLY will market and distribute MARTI's arsenic removal processes and products in India, Bangladesh, Nepal, Indonesia, Thailand, Australia, western Africa, and New Zealand. The arsenic removal technology of MARTI is expected to assist communities in all areas needing contaminant free drinking water.

Additionally, an agreement was executed licensing MARTI to begin distribution of the KELLY proprietary systems which provide a method to pump water through the filter media and the Arti-64™, MARTI's arsenic removal system, by means of foot or hand controls. The distribution will include all areas of North, Central, and South America. The KELLY non-electric system is a manually operated water treatment "platform" that will provide significant quantities of potable water safe from bacteriological and arsenic contaminated water anywhere -- particularly in the hundreds of thousands of villages in the world without electricity.

"There is a growing interest in the commercialization of our technologies for the purification of water. KELLY fits well with our strategy of outsourcing distribution to experienced companies," stated George Moore, Chief Operations Officer of MARTI. "I am pleased to be able to provide the system developed by KELLY for communities in South, Central, and the rural areas of North America."

About Kelly International

Kelly International Ltd. is a family owned water treatment company operating in New Zealand for the past 15 years. The Kellys have committed considerable funding towards developing and supporting innovative technologies in water and closely related fields. The company vision has always been to find and development new technology to provide a help in developing nations.

Mr. Russell Kelly, principal of KELLY, stated, "We are excited to introduce the MARTI process for the removal of arsenic in drinking water for the people of the world. We feel fortunate to have found a means to provide more protection from water contamination to the parts in which we do business. We look forward to increasing research and sales of a better line of water treatment internationally."

Dennis L. Mast, CEO of HydroFlo, commented, "KELLY's vast experience in the distribution industry is a key factor in assuring the availability of one of the most cost-effective methods for water treatment to everyone. We look forward to establishing open lines of communication with potential clients throughout the world to whom we can provide this necessary service, and look forward to expanding the business of this company to add value to HydroFlo's investment portfolio."

About HydroFlo

HydroFlo, Inc. (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. Its portfolio investment companies include: HydroFlo Water Treatment, Inc. www.hydroflo-inc.com, Metals & Arsenic Removal Technology, Inc. www.martiinc.com, and Safety Scan Technology, Inc. www.safety-scan.com.

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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