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/ CORRECTION - HydroFlo, Inc.

In the news release, "MARTI Distributor Signs Guaranteed 2 Year $42 Million Agreement With Chinese Distribution Company," issued Wednesday, September 28, 2005, by HydroFlo, Inc., we are advised by the company that the first paragraph should read, "Metals & Arsenic Removal Technology, Inc. (MARTI), a wholly owned portfolio company of HydroFlo, Inc. (OTC BB: HYRF), today announced the company will produce and supply Canadian Distribution Company, Essentially Yours Industries, Inc. (EYI) and China Electronics Import and Export South China Corporation (CEIEC) with $42 million worth of Water Pitchers and Filters. While the contract between EYI and CEIEC details these mimimum purchase amounts, purchase orders, and/or letters of credit have not yet been issued." rather than "Metals & Arsenic Removal Technology, Inc. (MARTI), a portfolio company of HydroFlo, Inc. (OTC BB: HYRF), today announced the company will produce and supply Canadian Distribution Company, Essentially Yours Industries, Inc. (EYI) and China Electronics Import and Export South China Corporation (CEIEC) with $42 million worth of Water Pitchers and Filters."

Complete corrected text follows.

MARTI Distributor Signs Guaranteed 2 Year $42 Million Agreement With Chinese Distribution Company

Pitcher & Filters to be Distributed Throughout China

RALEIGH, NC -- 09/28/05 -- Metals & Arsenic Removal Technology, Inc. (MARTI), a wholly owned portfolio company of HydroFlo, Inc. (OTC BB: HYRF), today announced the company will produce and supply Canadian Distribution Company, Essentially Yours Industries, Inc. (EYI) and China Electronics Import and Export South China Corporation (CEIEC) with $42 million worth of Water Pitchers and Filters. While the contract between EYI and CEIEC details these mimimum purchase amounts, purchase orders, and/or letters of credit have not yet been issued.

CEIEC has agreed to purchase a minimum of $21 million of MARTI filtration products for each calendar year of 2006 and 2007. CEIEC, located in South China, is the largest exporter and importer of electronic products in China and was the first Chinese enterprise to establish sales and cooperative relations with foreign brand name enterprises such as Hitachi, Sharp, Mitsubishi, Panasonic, Siemens, Casio, Philips, Hewlett-Packard, LG and Samsung. Currently, CEIEC is under the direction of the Chinese government and has extensive business relations with nearly 100 countries and regions and imports/exports over $1 Billion in products every year.

HydroFlo (http://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. The mission of HydroFlo, Inc. is to acquire and develop innovative technologies and businesses that will improve the quality of water throughout the world by means of detection, treatment, and removal of contaminants. By so doing, our most precious resource can be rendered safe and abundantly available for all future generations, and thereby, improve the quality of life on Earth.

Forward-Looking Statements

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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