RALEIGH, N.C., June 29, 2004 (PRIMEZONE) -- HydroFlo, Inc. (OTCBB:HYRF) today announced that it has received a directive from its Board of Directors to form a subsidiary, HydroFlo Water Security, Inc., for the specific purpose of developing security technology to help protect the water infrastructure in the United States.
HydroFlo, thru its strategic relationships with companies that assist with the acquisition of proprietary intellectual capital from academic institutions and other research centers, expects to acquire or develop technologies that will augment current U.S. water supply procedures. Funding grants provided by the Department of Homeland Security and a number of state agencies are designed to assist in the development of water security and water treatment technologies, and HydroFlo believes that the formation of HydroFlo Water Security, Inc. will not only allow it to access additional funds in the form of grants but will also help to broaden the scope of its business activities and diversify the holdings in its portfolio to the benefit of its shareholders.
"Since its conversion to an investment fund, HydroFlo has maintained that while it would continue to pursue the expansion of our first subsidiary, HydroFlo Water Treatment, management would also seek to expand our focus to other synergistic businesses in the water industry. The formation of a water security subsidiary will be a definitive and positive step in that direction, and we look forward to utilizing key strategic relationships to achieve ambitious goals in this market segment," commented, Dennis L. Mast, CEO of HydroFlo, Inc.
Both public and private drinking water utilities are encountering new responsibilities as the mission to deliver a dependable and safe supply of water has been expanded to include security and counter-terrorism concerns. In the Public Health Security and Bioterrorism Preparedness and Response Act of 2002, the U.S. Congress recognized the need for drinking water systems to undertake a more comprehensive view of water safety and security. The Act amends the Safe Drinking Water Act and specifies actions community water systems and the U.S. Environmental Protection Agency (EPA) must take to improve the security of the nation's drinking water infrastructure.
HydroFlo, Inc. (http://www.hydroflo.us) is a Business Development Company whose 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 (http://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 involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.