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First Shipment of Filtering Systems Leaves for Hurricane Katrina Survivors

Wholly Owned Subsidiaries MARTI and HydroFlo Water Treatment Deliver Water and Wastewater Treatment Systems to Local Government for Aid in Hurricane Relief Effort

RALEIGH, NC 09/20/05 -- HydroFlo, Inc. (OTC BB: HYRF) today announced portfolio company Metals & Arsenic Removal Technology, Inc. (MARTI) has donated water filtering systems, along with HydroFlo portfolio company HydroFlo Water Treatment (HWTI) consulting services, to aid in the Hurricane Katrina disaster relief effort. The initial commitment for distribution of water pitchers and filters is for 5,000 units. The first shipment has been sent out to assist survivors and other shipments will follow to FEMA and the DOD as units are produced by our manufacturers. The full shipment of 5,000 was ordered on September 19 and confirmation was received that the shipment will be sent from the China plant on October 15, 2005

Dennis L. Mast, Chief Executive Officer of HydroFlo, stated, "In response to the Presidents request to restore the basic infrastructure of the hurricane-ravaged municipalities HydroFlo has enlisted the help of local lobbyist Joe Mapes. Joe brings us the ability to have direct contact with families that have been affected as well as introductions to local governments and municipalities that need our help."

Local lobbyist Joe Mapes of Baton Rouge who has five families living in his office headquarters has agreed to assist in the distribution of the water filtration systems and to help introduce HydroFlo to the local municipalities that will most benefit from HydroFlo portfolio company HydroFlo Water Treatment (HWTI) consulting services. Mr. Mapes commented, "Louisiana is now the epicenter for change regarding how America protects itself from catastrophe -- be it man-made or natural. It is critical we 'get it right' in Louisiana first and then apply what we've learned nationwide to ensure a safe, productive future for America's children and grandchildren."

John D. Milne of mCapitol Management who is very familiar with the Hurricane affected area having been a resident of Baton Rouge, Louisiana, stated, "We are continuing our efforts with Federal and State agencies to offer HydroFlo technology to victims of the hurricane to assist in their recovery from this devastating storm in the form of water filter systems and consulting services." Metals & Arsenic Removal Technology, Inc. (MARTI) is an international provider of water treatment solutions, treating water for industrial, municipal and residential customers. MARTI markets, designs, builds, and installs water filtration and treatment systems for the removal of arsenic in drinking water. Water contaminated with bacteria, viruses and poisonous toxins is killing people. The ARTI-64(TM) media combination is one of the most effective methods to eliminate and reduce these pollutants in order to provide clean potable water to the world. HydroFlo Water Treatment, Inc. (HWTI) is an international provider of wastewater treatment solutions for industrial and governmental customers. HWTI designs, builds, and installs equipment used for pre-treatment of wastewater within sewers and pressure collection systems. The Company was founded in 1999 and provides equipment to end users and Original Equipment Manufacturers throughout the United States and Europe. The Company provides a full range of related services to companies and municipalities to treat their wastewater at the treatment plant by the use of the energy efficient aeration systems in treatment lagoons.

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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