HydroFlo Third Quarter 2005 10Q Shows Strong Net Profits RALEIGH, N.C., May 9, 2005 - HydroFlo, Inc. (OTC BB:HYRF) announced that its 3rd Quarter 2005 10-Q with quarterly financial results was filed with the Securities and Exchange Commission on May 6, 2005. HydroFlo CEO Dennis Mast commented, ?This quarterly report illustrates that as the Company continues to expand and build the base of portfolio companies in the water market, it is making progress in the efforts to increase the value of the Company?s investment portfolio. There are clear indications that progress has been made since our year ended June 30, 2004.? ?We expect continued improvement in the Company?s financial performance as portfolio companies HydroFlo Water Treatment (HWTI) and Metals & Arsenic Removal Technology (MARTI) continue to grow and capture a larger segment of the water treatment and purification markets. Additionally, the portfolio company Safety Scan Technology (SSTI) is expected to show strong benefits in expanding the market base of the company,? added Mr. Mast. ?Since the completion of the 3rd Quarter we have added another portfolio company, Ultra Choice Water, Inc., which will lease bottle-less water coolers to the commercial office market. This company will also provide financing for residential customers who wish to purchase whole house or under counter water treatment systems,? said Mr. Mast. HydroFlo investment in controlled companies has increased 110% since June 30, 2004, while acquiring synergetic technology through equity transactions. The company achieved pre-tax profits of over $291,000 for the nine-month period and an increase in net asset value to $0.12 per share for the most recent quarter ended March 31, 2005. About HydroFlo 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 is to locate, develop, and fund innovative technologies and businesses and utilize these acquisitions to make pure water available to the world by means of disinfection, purification, and removal of contaminants. It is our belief that water can overcome hunger, disease, poverty, and improve the overall quality of life on earth. 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. Contact: HydroFlo, Inc. Investor Relations Rebecca Morgan 919-772-9925 rmorgan@hydroflo-inc.com
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