Internal Hydro Low Impact Hydro Unit Displayed on Web Site; Results of Internal Trials Successfully Completed for Fielding


TAMPA, Fla., July 12, 2006 (PRIMEZONE) -- Internal Hydro International Inc. (OTCBB:IHDR) (www.InternalHydro.com) announces that the company has completed production and internal testing of the Energy Commander V (EC V) low impact hydro energy unit. The Company is now displaying the completed EC V unit on its web site, before transportation to its fielding site. The unit's internal testing exceeded all expectations for its revolutionary design. The 12 cylinder rotary motor, the first ever to run from the patented positive displacement of fluid instead of less efficient turbines, runs from a six inch inlet of water, in an expandable mode which can be used on waste water flows from tens of thousands of sources. With the completed internal testing of the unit, the system will now be transported to its fielding and on site production engineering site, with an anticipated delivery date of July 17, for field tests and engineering certification of this production unit.

The EC V system utilizes a dual cycle cylinder to produce energy in a completely efficient manner, from all twelve cylinders in the rotary fashion. The unit, displayed on the Company's web site, shows viewers photographs of some of the internal parts, and the completed EC V rotary, 12 cylinder unit which will now be passed off for field testing at a location to be announced within the next week. The Energy Commander system is the first positive displacement low impact energy technology ever built or patented for use of low flows, and waste flows of industrial and natural flows.

IHDR's EC V unit will now be fielded to a site where it will be certified for energy production, and for production plans. The follow on production of ten units is now projected for the third quarter 2006.

The EC V "slice" concept was used in production of the 12 cylinder unit. As built, each rotary 360 degree slice houses twelve 4 inch cylinders, will be able to be stacked with other slices to provide the 30 kilowatts of standard output, with additional or less slices, each of 12 cylinders, needed or not needed based upon the flow that is present at any one location. IHDR has recently announced that it was able to plan for as little as 30 p.s.i. of pressure for production of electricity in multiple units at a single site. Expandability is a key that traditional turbine technology does not support.

About Internal Hydro International, Incorporated

Internal Hydro International, Inc. is an alternative energy company that developed a clean energy power system, the Energy Commander Systems, which utilizes a patented technology using waste water, fluid or gas flow from any source where flow pressure is present, and yet wasted, to create electricity. Internal Hydro has grown into a multi-national enterprise with international contracts spanning over three continents. Internal Hydro is well positioned to gain major market share and dominate the niche of hydro energy and expansion into other renewable energy areas in the fragmented alternative energy marketplace. For more information, please visit the company's Web site at www.InternalHydro.com.

Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statement of IHDR officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future IHDR actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and IHDR has no specific intention to update these statements.



            

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