Internal Hydro, Inc. Added to Ludlow Energy SmallCap Index


TAMPA, Fla., Aug. 21, 2006 (PRIMEZONE) -- Internal Hydro International, Inc. (OTCBB:IHDR) (www.internalhydro.com) announced today its selection as a component of the Ludlow Energy SmallCap Index. Internal Hydro is a Tampa, Florida-based renewable energy company with core technologies of low impact hydro positive displacement systems and licensed waste tire to fuel and ethanol waste fuel production.

The Ludlow Energy SmallCap Index contains a select group of U.S. traded small cap alternative energy stocks designed for investors who have a long-term bullish outlook on the biorenewable and alternative energy market. It is an indicator of the investment community's involvement in the renewable energy sector. Selection criteria includes due diligence on each companies technology, management, and market outlook for the company. The Index is owned and operated by Ludlow Energy Fund, Inc., based in New York City. www.ludlowcapital.com/indices/

Internal Hydro is preparing to field its Energy Commander technology for production after throughput and certifications are completed in the near term. The Energy Commander technology is a unique system that has already been contracted for delivery internationally in Africa and Europe, along with domestic entry into the oil and gas industry, and interest for units for residential, textile, chemical, agricultural and other industrial uses. IHDR has licensed the CAVD tire remediation to fuel and ethanol waste (DDG) to fuel technology for energy production and remediation contracts to occur from separate sectors. After completion of production on the version V, IHDR is currently in the process of fielding the Energy Commander on site in Mobile, Alabama for certification for small hydro, showings, electrical production in an industrial setting and purchaser viewings over the next 30 days.

"Internal Hydro is pleased to be included in the Ludlow Energy SmallCap Index. This is an acknowledgment of our direction and future success. It will give our company valuable exposure to discerning accredited and institutional investors," stated Craig Huffman, CEO and President of Internal Hydro. "Our entry into the market with our low impact hydro system, and our license of tire remediation to fuel, and ethanol production waste to bio-fuels, is the type of direction that is needed in the energy industry, and what is being reflected by the Ludlow Energy SmallCap Index."

About Internal Hydro:

Internal Hydro International, Inc. is an alternative energy company that developed a clean energy power system, the Energy Commander Systems, that 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 licensed a tire remediation to fuel and ethanol waste (DDG) to biofuels technology for use on ethanol plants domestically. IHDR is international in scope, with European production and marketing for its core technologies, and is preparing to enter the market with its core Energy Commander systems. Internal Hydro is well positioned to gain major market share and dominate the niche of hydro and renewable energy in the fragmented alternative energy marketplace. For more information, please visit the Company's Web site at www.InternalHydro.com.

Forward-Looking Statements: This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors. The actual results that the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.



            

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