----

**CERTIFICATION      PURSUANT TO SECTION 302 OF      THE**

**SARBANES-OXLEY      ACT OF      2002**

| 1. | I                have reviewed this quarterly report on Form 10-QSB of Internal Hydro                International, Inc.; |
|----|---------------------------------------------------------------------------------------------------------------------------|

| 2. | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                small                business issuer as of, and for, the periods presented in this report; |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | As                Chief Financial Officer, I am responsible for establishing and maintaining                disclosure controls and procedures (as defined in Exchange Act Rules                13a-15(e) and 15d-15(e)) for the small business issuer and have: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under my supervision, to ensure                that material information relating to the small business issuer,                including                its consolidated subsidiaries, is made known to us by others within                those                entities, particularly during the period in which this report is                being                prepared; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under my supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Evaluated                the effectiveness of the small business issuer's disclosure controls                and                procedures and presented in this report our conclusions about the                effectiveness of the disclosure controls and procedures, as of the                end of                the period covered by this report based on such evaluation; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Disclosed                in this report any change in the small business issuer's internal                control                over financial reporting that occurred during the small business                issuer's                most recent fiscal year that has materially affected, or is reasonably                likely to materially affect, the small business issuer's internal                control                over financial reporting; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | I                have disclosed, based on my most recent evaluation of internal control                over financial reporting, to the small business issuer's independent                registered public accounting firm and the audit committee of the                small                business issuer's board of directors (or persons performing the equivalent                functions): |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | All                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the small business issuer's                ability                to record, process, summarize and report financial information; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Any                fraud, whether or not material, that involves management or other                employees who have a significant role in the small business issuer's                internal control over financial reporting. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |                                              |                             |
|-----------------------------------------|---------------------------------------------------|----------------------------------|
|                               |                                         |                        |
| Date: August              14, 2006 | By:                                     | /s/ Lior              Segal |
|                                    | Lior              Segal                           |
|                                    | Title:              Chief Financial Officer  |