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HydroFlo Resumes Financial Reporting

HydroFlo, Inc. (PINKSHEETS: HYRF) announced today that it has resumed issuance of financial reporting documents as promised earlier this year. The first "catch-up" report published today is a 10Q report for the three month period ending September 30, 2005. Additional reports for the interim periods covering the parent corporation and all of its subsidiaries will be forthcoming as quickly as they can be processed by the independent auditors.

George Moore, President of HydroFlo, Inc., explained, "We are very pleased that we can finally begin to return to a fully reporting corporation. Due to the many organizational changes and other difficulties encountered over the past eighteen months, it has taken us longer than originally thought to reconcile our financial information and produce these fully audited reports. With the initial and oldest overdue report now behind us, we expect to quickly catch up through the current reporting period. We continue to aggressively move forward in restoring the corporation's image as a leading supplier of technology and services to the water industry."

HydroFlo, Inc. is headquartered in Apex, North Carolina, and maintains a core focus to seek out synergistic acquisitions that will provide capital appreciation and income for 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.

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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