TAMPA, Fla., Aug. 29, 2006 (PRIMEZONE) -- Internal Hydro International Inc. (OTCBB:IHDR) (www.InternalHydro.com) has placed the first Energy Commander (EC) low impact hydro unit for renewable energy certification and production set up in Mobile, Alabama. IHDR's low impact hydro unit, the Energy Commander V, was built for commercial utilization using efficient positive displacement cylinders rather than large intake turbine systems. The system was sited with the cooperation of Earth First Technologies, Inc.'s (EFTI) CAVD plant in Mobile, Alabama for engineering certification and production plans by IHDR, and for domestic customer base demonstration and European production and manufacturing partner input. The low impact hydro system, besides being qualified for renewable energy and engineering certifications on site, will supply energy for use at the plant during operations.
This placement of the Energy Commander in this small flow setting in an industrial operation will support the market entry of the next ten units for those already contracted for the oil and gas industry, residential development, and requests for units under IHDR's placement plan in the agricultural, textile, wood pulp and production, non-large hydro supporting dams, water pipelines, and large use utilities arenas. As an example, IHDR is already working in the residential and municipal power market with one major utility where a pipeline creates excess pressures requiring pressure reduction valves along a one and a half mile route. Energy Commander placements would take the place of pressure reduction valves, for placement of numerous clean energy EC units on such lines. The EC unit is sited at the Mobile plant to use a six inch inlet of water, its standard intake, into the 12 dual-cycle cylinder unit for production of electricity on a unique cam shaft for generation of the force on the drive shaft and generator. The engineering and renewable energy certification of the unit will be completed by a third party engineering firm in Mobile, and the production phase for large scale unit roll out will be participated in on site by Cm2, the Italian based European manufacturing partner of IHDR for large scale production.
The Company chose to make necessary changes in the system at its home production facilities in Tampa before the fielding in Mobile over the last month, which would save resources and time for certification and production requirements for the market entry of units after certification. IHDR's entry of the Energy Commander into the market will be phased toward the business plan of unit revenue being maintained by the corporation, with the goal of 500 units in the first year of full production. Each domestic unit is expected to produce between $15,000 and $17,500 annually, and in Europe, over $44,000 in revenue. Revenue streams for each four slice 30 Kilowatt Energy Commander unit will include the electricity production value, tax credits and renewable energy credits. While the entry into some limited sales contracts has and will occur, the major component of revenue sharing is the Company's core business philosophy. The unit in place will be displayed on the Company's web site through photographs in the next week, while customers and potential customers will be invited through the facility from those contracted and placement parties under agreement.
The "slice" Energy Commander concept was used in production of the 12 cylinder unit. As built, each rotary 360 degree 12 cylinder slice houses twelve 4 inch dual action cylinders, which will be able to be stacked with other slices to provide the 30 kilowatts of standard output, with additional or less slices, each of 12 cylinders, needed or not needed based upon the flow that is present at any one location. IHDR has recently announced that it was able to plan for as little as 30 p.s.i. of pressure for production of electricity with 40 units, on a single dam site by use of the slice concept. Expandability is a key that traditional turbine technology does not support.
IHDR, and its predecessor company ICI, built four prototypes utilizing the positive displacement system before the build out of the 12 cylinder radial system for production. The 12 cylinder format is the expansion of the 4 and 8 inline cylinder units of the EC IV, which was near market entry before the radial system was selected for production. The standard unit in production will be built to provide an always ready 30 kilowatts of electricity for constant use by industrial and natural flow users.
About Internal Hydro:
Internal Hydro International, Inc. is an alternative energy company that developed a clean energy power system, the Energy Commander Systems, that 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 licensed a tire remediation to fuel and ethanol waste (DDG) to biofuels technology for use on ethanol plants domestically. IHDR is international in scope, with European production and marketing for its core technologies, and is preparing to enter the market with its core Energy Commander systems. Internal Hydro is well positioned to gain major market share and dominate the niche of hydro and renewable 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.