RALEIGH, NC--(MARKET WIRE)--Sep 7, 2005 -- Metals & Arsenic Removal Technology, Inc. (MARTI), a portfolio company of HydroFlo, Inc. continues to expand on released information regarding their new agreement for pitcher and filtration system manufacturing contracts. Yesterday the company announced an agreement with a major Chinese international plastics injection molding firm for production of their water filtration units. MARTI went on to confirm speculation that the contract with their European contractor, WAL S.A., based on a mutual agreement between both parties, was terminated to ensure increased production through the current distribution channel.

Yesterday's release of information also declared initial production estimates in amounts of up to 1,200 pitchers and 4,000 filters daily; however, after further negotiation and discussion with the manufacturer, these numbers have increased by more than 5 times their original projections. The company today announced that approximately 8,000 pitchers and 25,000 filters will begin the initial daily production goal. The new manufacturer will produce over 2 million pitchers and 6 million filters per year; providing the company more opportunity for order fulfillment than ever before.

MARTI also announced that contracts are complete with a textile firm in Eastern North Carolina to manufacture the ARTI-64(TM) media for their filtration units. The company will provide an abundant supply of inserts for each of the water filtration units with the patented arsenic and bacterial removal technology.

Dennis L. Mast, Chief Executive Officer of HydroFlo, has always held a strong desire to bring jobs back to North Carolina. "After the recent devastating textile industry outsourcing to Central America, I have desperately wanted to bring not only jobs, but greater prosperity into the eastern region of the state. I am pleased to be able to work with multiple manufacturers around the world and right here in our own back yard to help provide these opportunities for people everywhere."

HydroFlo (http://www.hydroflo.us) is a Business Development Company, as defined by the Investment Act of 1940. Headquartered in Apex, 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.