HydroFlo, Inc. Acquires Safety Scan Technology, Inc. from UTEK Corporation; Acquisition Transfers Patented Technology for Real-time Analysis of Drinking Water

Business Wire, Dec 21, 2004

RALEIGH, N.C. & LOS ALAMOS, N.M. & PLANT CITY, Fla. -- HydroFlo, Inc. (OTCBB:HYRF), an international provider of proprietary technology and equipment used for the treatment and testing of water and wastewater, and UTEK Corporation (AMEX:UTK), an innovative technology transfer company, announced today that HydroFlo, Inc. has acquired Safety Scan Technology, Inc. (SSTI), a wholly owned subsidiary of UTEK Corporation, in a stock transaction.

SSTI holds an exclusive license to a patented technology that can be used for the analysis of water to rapidly detect the presence of potentially harmful compounds using ultrasonic interferometry. Developed by researchers at the Los Alamos National Laboratory, the lightweight and portable system utilizes resonance of high frequency sound waves to detect compounds of interest. For example, even a sealed container of water may have its contents rapidly analyzed for potentially hazardous contaminants. The technology is capable of identifying a broad spectrum of substances and has been field-tested for a variety of other applications.

According to Dennis Mast, Chairman and CEO of HydroFlo, Inc., "We believe that this proprietary technology will be beneficial to help cost-effectively evaluate the safety of the water supply. Further, we think that this acquisition is compatible with our goal of providing new technology to ensure cleaner and safer water for public, industrial and residential water systems."

"We are very enthusiastic about working with HydroFlo, Inc. as they develop and commercialize our Swept Frequency Acoustic Interferometry (SFAI) technology for water testing applications. We believe that our unique method for scanning for possible contaminants found in drinking water is an excellent opportunity to address a major health concern," said Laura Barber, Technology Licensing Executive at the Los Alamos National Laboratory.

About HydroFlo, Inc.

HydroFlo, Inc. is a business development company, as defined by the Investment Company 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. HydroFlo also provides a full range of related services to companies and municipalities to treat water and wastewater. For more information about HydroFlo, please visit its website at http://www.hydroflo.us.

About Los Alamos National Laboratory

Los Alamos National Laboratory is operated by the University of California (UC) for the Department of Energy (DOE). The Laboratory's Technology Transfer Division develops partnerships and collaborations with industry, academia, and other research institutions in furtherance of programmatic goals, while benefiting the nation's industrial and academic sectors. For more information, please visit its website at http://www.lanl.gov/partnerships/.> About UTEK Corporation

UTEK is a leading, market-driven technology transfer company that enables companies to rapidly acquire innovative technologies from universities and research laboratories. UTEK is the only company that facilitates the identification and acquisition of external technologies for clients in exchange for their equity securities, while allowing research institutions to receive 100% of the royalties. This unique process is called U2B(R). UTEK transfers proprietary technologies with potential commercial applications to companies seeking product differentiation resulting in a strategic marketplace advantage. For more information about UTEK, please visit its website at http://www.utekcorp.com.

Forward-Looking Statements

Certain matters discussed in this press release are "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words such as UTEK or HydroFlo "expects," "anticipates," "should," "believes" or words of similar import. Similarly, statements that describe UTEK's or HydroFlo's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, including the financial performance of UTEK or HydroFlo, as appropriate, and market valuations of their stock, which could cause actual results to differ materially from those currently anticipated. Although UTEK and HydroFlo, as appropriate, believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, they cannot give any assurance that their expectations will be attained. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating any forward-looking statements. Certain factors could cause results and conditions to differ materially from those projected in these forward-looking statements, and some of these factors are discussed below. These factors are not exhaustive. New factors, risks and uncertainties may emerge from time to time that may affect the forward-looking statements made herein. These forward-looking statements are only made as of the date of this press release and both UTEK and HydroFlo do not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.