HydroFlo Forms Fifth Portfolio Company

July 19, 2005

HydroFlo, Inc. announced the newest addition to its portfolio of businesses, Advanced Water Recycle, Inc. (AWRI). The latest corporation will combine resources from each of HydroFlo's current portfolio companies to provide customers with water recycling and reuse.

AWRI will initially concentrate sales efforts of its technologies across the U.S. coastlines and all ports. To achieve the acceptable levels of contaminant free water in compliance with U.S. Environmental Protection Agency standards, AWRI will utilize multiple aspects of each of HydroFlo's current portfolio companies. AWRI will make use of HydroFlo Water Treatment's aeration and new HDAF units to offer the proper ventilation and conditions for the pretreatment of wastewater.

Metals and Arsenic Removal Technology will provide its ARTI-64TM technology and other purification methods to assist with the final purification of the water. Safety Scan Technology will offer water-testing equipment for the various stages of the process. Ultra Choice Water will offer financing to assist in the payment process for customers. The combined technologies will turn untreated storm water, ground water, water run-off, sewage, wastewater and any pretreated water into potable drinking water.

A coastal region of North Carolina has fostered the initial interest for AWRI services. This particular request is to start water treatment of 70 mgd for the next 10 years. This has propelled HydroFlo to take action and offer the necessary services to assist the region with their treatment difficulties. The Florida Senate Bill 444 has also provided an area of need for water treatment by offering a funding level allotment of $100 million annually.

Based on recent U.S. Environmental Protection Agency studies, Americans drink more than 1 billion gal of tap water per day. Over 98% of that water is groundwater. HydroFlo management conceded that statistics like these are overwhelmingly in support of creating a more efficient method to treat wastewater. Dennis L. Mast, CEO of HydroFlo, commented, "I am pleased to finally put a company name to the process I have envisioned and strived to create for over a decade. With North Carolina coastal region's recent request for suitable water treatment and the passing of the latest Florida Senate Bill 444, the time has come for this company to provide this essential service. We look forward to establishing open lines of communication with government agencies that have this need. We also excitedly anticipate expanding the business of this company to add value to the HydroFlo investment portfolio."

Source:

HydroFlo, Inc.

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