Internal Hydro Submits Proposal for Placement of 40 Small Hydro Units at Dam Site to Army Corps of Engineers in North Carolina


TAMPA, Fla., June 19, 2006 (PRIMEZONE) -- Internal Hydro International, Inc. (OTCBB:IHDR) (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.

About Internal Hydro International, Incorporated

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 and expansion into other renewable energy areas in the fragmented alternative energy marketplace. For more information, please visit the company's Web site at www.InternalHydro.com.

Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statement of IHDR officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future IHDR actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and IHDR has no specific intention to update these statements.



            

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