HydroFlo to Pursue $5.2 Billion in Funding Available Through Homeland Security Department and Other Federal Agencies


RALEIGH, N.C., April 20, 2004 (PRIMEZONE) -- HydroFlo, Inc. (OTCBB:HYRF) today announced that its Board of Directors has instructed management to take immediate action to position its subsidiary, HydroFlo Water Treatment, Inc. (HWTI) to pursue $5.2 billion being allocated by Congress to address the worsening state of the water and wastewater systems in the U.S. Water industry professionals are urging Congress to expand funding to at least $15 billion over the next five years for infrastructure needs alone.

Meanwhile, congressional auditors have recommended that the U.S. Department of Homeland Security develop and implement a strategy for coordinating with the private sector and other government agencies to improve security for control systems, such as water supply and wastewater management and other utility plants.

"By focusing on government funding opportunities, we believe that HydroFlo Water Treatment, Inc. can gain access to additional capital and fulfill important roles in upgrading the nation's water infrastructure," commented Dennis L. Mast, CEO and Chairman of HydroFlo, Inc.

According to the U.S. House Committee on Transportation and Infrastructure, local communities are currently investing approximately $10 billion a year in wastewater infrastructure, and an aging, deteriorating U.S. national water system is forcing government agencies at all levels to make funds available for updating water systems and installing the most advanced technology solutions. The Committee estimates that communities will have to increase their current level of spending by as much as 100 percent to meet their water infrastructure needs.

About the Company

HydroFlo, Inc. (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 first portfolio investment company, HydroFlo Water Treatment (www.hydroflo-inc.com) is in the business of providing aeration equipment used for the pre-treatment of wastewater. Using the patented Pressure Line Up-Stream or PLUS pre-treatment system, HydroFlo Water Treatment provides customers a treatment process at their pumping stations, prior to the wastewater reaching a treatment plant.

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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