Internal Hydro Entry Into European Joint Venture to Provide Asset Base of Up to $40,000,000 and 350,000 Sq. Ft. Production Facility

July 11, 2006

TAMPA, Fla., July 11, 2006 (PRIMEZONE) — Internal Hydro International Inc., (OTC BB:IHDR.OB) (, by entering into an initial agreement for entry into a European joint venture with Energia Futura S.r.l. of Italy, will gain access to an estimated hard asset base of $40,000,000 and receive backed capital for 85% of production costs. With a targeted location of a 350,000 square foot facility, situated on 50 acres in Narni, Italy, for the location of four companies’ production facilities, IHDR will be a co-owner of the hard assets of the Joint Venture. The ownership of the associated property would include the assets on site, as well as the machining, structure, transportation assets, and other on site property which would be owned by the Joint Venture. The site, located at a closed steel manufacturing facility located in Narni, is to be, and has been financially backed by both private and public entities for the creation of employment in the region, with the location of renewable energy based companies, such as IHDR. IHDR will have units built by Cm2, its European licensee, initially in the third quarter at their existing Terni, Italy facility, until the Joint Venture location is finalized and readied for occupancy and production. Over $10,000,000 has already been invested at the location by local and state entities to ready it for new industrial capacity.

In May, IHDR’s CEO presented its suite of technologies to a group of over seventy Italian government, business, banking, environmental, university, and industry professionals at a conference hosted by Energia Futura at Narni, Italy,The Joint Venture will be managed by Cm2 senior management controlling the Energia Future Joint Venture. The existing Cm2 production facility in Terni will be the initial site of unit production after testing of the Energy Commander V low impact hydro 30 Kw unit is due to be completed at the end of July, 2006.

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

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.


          Internal Hydro International Inc.
          William Englemen, Investor Relations
          (713) 320-3596

Source: Internal Hydro International, Inc.

Source: Yahoo


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