Lead Added to the EPA’s List of Cancer Causing Agents

Ultra Choice Water Provides Practical Means of Lead Reduction
RALEIGH, NC -- 04/14/2005 -- Dennis L. Mast, Chief Executive Officer of HydroFlo, Inc. (OTC BB: HYRF), commented on the latest news that lead has been added to the U.S. Government’s List of cancer causing agents. The EPA adds more credence to the importance of HydroFlo’s mission to provide clean and safe water to the world.

“We have been aware of the potential health hazards of lead in the human body, but the most recent reports of its carcinogenic nature are another factor that encourages our belief in the need to lower lead levels in drinking water,” explained Mast. “It is a common assumption that reducing lead is difficult and extremely costly; however MARTI, using the ARTI-64™ compound, can reduce lead and arsenic levels to below EPA recommended standards, with limited cost to the consumer. Being able to offer MARTI technology through Ultra Choice Water makes it extremely affordable and accessible for anyone.”

Lead has long been known for its toxicity to humans. According to the Centers for Disease Control and Prevention (CDC) (http://www.cdc.gov/lead/basics.htm), ingesting large lead amounts, “...may develop blood anemia, severe stomachaches, muscle weakness, and brain damage.” Children run even greater health risks from lead poisoning. They are more likely to be plagued with central nervous system failures, memory loss, decreased reaction time, or even death. The latest testing by the United States Environmental Protection Agency (EPA) (http://www.epa.gov/ttn/atw/hlthef/lead.html) has further determined lead to be a carcinogen, making it even more dangerous to the human body than originally considered.

Many people are exposed to lead by drinking water contaminated with the poison. Unfortunately this is not an uncommon occurrence as many Americans may believe. The Washington Post (10/4/04) (http://www.washingtonpost.com/wp-dyn/articles/A7094-2004Oct4.html) reported cities across the United States manipulating results of lead testing of drinking water. These cities include Philadelphia, Boston, New York City, and Seattle. Even the District of Columbia, the Nation’s Capital, has a severe lead problem. According to another Washington Post (1/22/05) (http://www.washingtonpost.com/wp-dyn/articles/A27660-2005Jan21.html) article, “The D.C. Water and Sewer Authority violated federal law by claiming that the water in more than 400 District homes had safe levels of lead and by not replacing that number of lead service lines.” Recently The Post (1/12/05) (http://www.washingtonpost.com/wp-dyn/articles/A1947-2005Jan11.html) has also reported that Capital Hill employees were advised not to use water from bathroom and kitchen faucets for drinking or cooking after the discovery of the excessive levels of lead in water at the Library of Congress.

HydroFlo has made it the company mission to offer clean and safe water to the world. Each portfolio company offers products that pertain to treatment of water or wastewater to assist with the fulfillment of this mission. MARTI offers products that remove arsenic, lead, and bacterial contaminants from drinking water, making it safer for families around the globe. Being able to offer MARTI technology through Ultra Choice Water continues to execute the plan to fulfill the HydroFlo mission.

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.

Its portfolio investment companies include: HydroFlo Water Treatment, Inc., www.hydroflo-inc.com, a business providing pre-treatment of wastewater by use of the PLUS pre-treatment system which provides a treatment process at the municipal pumping stations prior to the wastewater reaching a treatment plant; Metals & Arsenic Removal Technology, Inc., www.martiinc.com, a business providing proprietary and innovative methods and services for the removal of arsenic from drinking water to meet the current EPA requirements of less than 10 parts per billion in drinking water by January 2006; and Safety Scan Technology, Inc., www.safety-scan.com, a business that provides methods and equipment for the noninvasive testing of municipal, industrial, and potable water to insure safety. Ultra Choice Water, Inc., a business that distributes and finances water treatment systems to households and businesses throughout the world.

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.

Contact Information

Rebecca Morgan

Investor Relations

HydroFlo, Inc.

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