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Internal Hydro Submits Proposal for Placement of 40 Small Hydro Units at Dam Site to Army Corps of Engineers in North Carolina.
Monday June 19, 9:00 am ET


TAMPA, Fla., June 19, 2006 (PRIMEZONE) -- Internal Hydro International, Inc. (OTC BB:IHDR.OB - News) (http://www.InternalHydro.com) announces that it has submitted a proposal this week for the placement of 40 units of its Energy Commander V (EC V) 30 Kilowatt low impact hydro units with the U.S. Army Corps of Engineers for the W. Kerr Scott Dam site located in North Carolina. With a planned minimum 1.2 megawatts power output at this single location, the projected annual revenue is $750,000 from the site. IHDR's proposal will be a basis for other multi-set units to be installed in the more than 70,000 non-electricity producing dams in the U.S. Thousands of those sites could be equipped to use the EC system, where traditional turbine systems have never been able to run due to the low-head flows of water. The Army Corps owns 569 dams, with 58% of the remainder being privately owned, and the remainder are local, state and other federal entities.

The proposal shows that the EC V is able to be implemented on low head water flows, where turbine systems could not be powered due to the low head. Head is the drop in water flow which creates force. With only just over a 65 foot drop at Kerr Dam, IHDR's proposal is for a bank of forty 30 kw units contained in a single structure to operate at between 30 and 40 p.s.i. IHDR will work with the Army Corps to complete the submission process and a revenue sharing plan. The Company opted to await submission of the proposal until the completion and testing phase was entered and verified for the EC V 30 kilowatt small hydro power unit. IHDR will publish the detailed proposal on its web site within days. Other private dams have also expressed a desire to implement units upon the current production cycle.

``This will not be a first entry point for units, since those will be nearly instant at other private locations, but it will show the Corps and other dam owners that we can do things with low head hydro, including potentially thousands of dam sites sitting there with wasted energy, and start producing electricity where ordinary turbines would not have worked,'' stated Craig A. Huffman, CEO and President of IHDR. ``Our EC V units are flexible enough that their use in a lot of those 70,000 non-electricity producing dams would result in easily thousands of placement opportunities. Not all will support 40 units, some will be more, and some will be less and some not at all, but this proposal is a place no one could touch with a large scale turbine. That is why our technology is unique and superior in power and ecologically friendly,'' continued Huffman.

W. Kerr Scott Dam is located on the Yadkin River about five river miles upstream of Wilkesboro, NC. The dam is about 55 miles west of Winston-Salem, NC and about 65 miles north of Charlotte, NC. The dam was completed in 1963. With a cost of production for the units at approximately $250,000 plus related one time infrastructure such as unit housing, and piping and platform area, and a projected seven year life, and easy change out, the projected revenue stream and ability to provide constant electricity would be an appreciably favorable ROI.

The placement plan would be a typical one for any dam in the world with low head which the Energy Commander can use, but much less than that required by traditional large scale hydro units. Unlike turbines, the positive displacement system of the Energy Commander utilizes cylinders and a patented controller valve to take in a low pressure flow, through a small inlet, using all the flow inside the cylinders to create mechanical forces for a generator. The system can be expanded or contracted by the number of 12 cylinder slices to match the available flow pressure. Unlike traditional turbines, the small intake size can easily control sediment entry and marine life from being harmed.