TAMPA, Fla., March 6, 2006 (PRIMEZONE) -- Internal Hydro International Inc. (OTCBB:IHDR) (www.InternalHydro.com) announces that with the rollout of the low impact hydro Energy Commander (EC) units in the second quarter of 2006, that the projections for unit production, placement and revenue for the first year of market placement shows that over one thousand units by second quarter 2007, is projected. Revenue after the first year of operations of such units is projected to be $23,450,000. Since IHDR has recently gained a significant new shareholder base in the past few days, the overview of its business plan and projections is in order.
With each EC unit producing 30 kilowatts of constantly available electricity from a low impact renewable hydro source, each unit is a renewable energy production device, using a fraction of the flows of normal turbines, at greater efficiency and cost basis. Assuming a $0.05 per kilowatt hour (KwH) for electricity value, a voluntary and mandatory renewable energy credit revenue of approximately $0.02 per KwH, and a $0.02 combined tax credit per KwH, each unit will produce approximately $17,500.00 per year in available revenue. With a projected 500 units to be fielded in the U.S. in the first full year of operation, this will result in a revenue flow of $8,750,000 in one year of operations for those 500 units. Each unit in the U.S. will be held as corporate assets, not sold, and the electricity will be discounted to the landowner, while IHDR retains the remaining electricity revenue, RECs and tax credits.
Through its European partner, Cm2, IHDR expects that a one year rollout of units in the EU will be 600 units. Due to significantly more valuable energy credits and electricity value in the EU, each EC unit is projected by Cm2 to have a revenue potential of over 37,000 Euros per year, the equivalent of $44,000.00 per unit. With the operation of over 600 units over one year, $26,400,000 in revenue can be created. IHDR and Cm2 will share in this revenue where IHDR could receive $13,200,000, at little cost to IHDR. In addition, IHDR will be paid an average one time royalty of $2,500 from Cm2 for each unit, or $1,500,000 for the first 600 units.
The corporate philosophy of IHDR is to have impactful dividends from its EC operations shared with its shareholders. With a combined revenue from the 1,100 EC units from both the EU and the U.S. after one year of operations, the combined available revenue to IHDR is projected to be $23,450,000. Obviously, additional units being fielded during the same time period will create an even larger revenue base both in the United States and the EU.
IHDR is also seeking measures that will create an avenue for the Corporation to share the created tax credits with its shareholders, as a means of a dividend policy if possible.
About Internal Hydro
Internal Hydro International, Inc. is an alternative energy company that developed a clean energy power system, the Energy Commander Systems, which utilizes a patented technology using waste water, fluid or gas flow from any source where flow pressure is present, and yet wasted, to create electricity. Internal Hydro has grown into a multi-national enterprise with international contracts spanning over three continents. Internal Hydro is well positioned to gain major market share and dominate the niche of hydro energy in the fragmented alternative energy marketplace. For more information, please visit the company's Web site at www.InternalHydro.com
Forward-Looking Statements: This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors. The actual results that the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.