HSE operations and activity update



    CALGARY, Feb. 20 /CNW/ - HSE Integrated Ltd. ("HSE" or the "Company")
wishes to provide shareholders and potential shareholders with the following
operations and activity update.

    Oilfield Activity - Company operations supporting conventional oil and
gas drilling, completion and workover activities are stronger than HSE's
clients indicated prior to the commencement of the winter drilling season.
Manpower shortages remain a limiting factor and have resulted in some lost
work. This manpower challenge is occurring industry-wide at the present time.
The strengthening of natural gas prices has created some optimism for higher
activity levels in 2008 than existed last fall; however few clients have
provided any visibility to HSE with regards to their upcoming programs for the
rest of the year.

    Industrial Activity - In mid-February HSE's scheduled and confirmed order
book for safety services for plant shutdown and turnaround operations is
significantly larger than at the same time last year. In 2007 the Company
established itself as a capable service provider for large scale industrial
safety projects and this has resulted in significant amounts of new and repeat
business. HSE also continues to expand into new industrial safety markets and
industries from all field service locations. The Company's Fort McMurray and
Bonnyville locations continued to provide new opportunities in the growing
oilsands and thermal heavy oil development markets.

    Central and Atlantic Canada - HSE will continue to expand operations in
Ontario, Nova Scotia and New Brunswick in 2008. The Company is planning to
open new service locations in Sudbury and Hamilton to service existing and new
clients. The New Brunswick operation, established as a "greenfield" location
in Saint John in early 2006, continues to add capacity and new customers. The
outlook for the Dartmouth location in 2008 and beyond is very positive now
that two major offshore projects off Newfoundland (Hebron - oil) and Nova
Scotia (Deep Panuke - gas) have been announced and are proceeding to the
engineering and procurement phases.

    Saskatchewan and British Columbia - Building upon the acquisition of
Prairie Wide Safety in Weyburn, Saskatchewan in July 2007 and its strong
franchise in Fort St. John, B.C., HSE continues to expand its capacity in the
very active southeast Saskatchewan and B.C. marketplaces by relocating field
service equipment previously utilized in Alberta. HSE has also developed and
is servicing new clients in Prince George, B.C. and is in the process of
opening a field service location in that active and diversified region.

    Training and Consulting - The one HSE service line that opens doors with
new clients and new markets and gets paid to do it is industrial safety
training and consulting. Every worker in every industry is required by law to
have some sort of safety program requiring documented processes for worker
training and orientation. This provides continuous market leads and
intelligence into new potential clients and opportunities. HSE is in the
process of expanding its consulting group to provide more services to more
clients and the demand for worker training is introducing HSE to new clients
in domestic and international markets and in the process introducing these
companies to HSE.

    United States Expansion - Based on market research that commenced in the
summer of 2007, HSE is in the advanced planning process of opening one or more
field service locations in the active U.S. natural gas oilfield services
market in 2008. After extensive interviews with potential clients in several
markets, HSE is confident that the U.S. oil and gas industry is ready to
embrace specialized worker and asset protection services long offered in
Canada as vastly superior to current methods employed. HSE believes the "lower
48" will be a strong and growing marketplace for the Company with a measurable
impact on the financial performance in 2009.

    David Yager, Chairman and CEO, offered the following comments on HSE's
opportunities in 2008 and beyond.
    "Last year's very successful and significant growth in industrial safety
has permanently transformed our Company. This occurred at the same time as our
traditional oilfield safety services business contracted sharply. The strong
customer acceptance of the HSE service package and business model has given
everyone from our field service technicians to our sales personnel to our
regional managers the confidence to understand that virtually every industrial
operation is a potential customer for one or more of HSE's services, and go
after new business and geographic markets. At the same time, improving gas
prices and continued geographic expansion give us reason to again be
cautiously optimistic about the oilfield segment of our business."

    HSE is Canada's only national supplier of integrated industrial Health,
Safety and Environmental services. From its head office in Calgary, Alberta
HSE serves its clients from field service locations in Alberta,
British Columbia, Saskatchewan, Ontario, Nova Scotia, New Brunswick and
Michigan. HSE trades on the TSX under the symbol "HSL".

    Forward-Looking Statements

    This news release may contain forward-looking statements concerning,
among other things, the Company's prospects, expected revenues, expenses,
profits, financial position, strategic direction, and growth initiatives, all
of which are subject to risks, uncertainties and assumptions. These
forward-looking statements are identified by their use of terms and phrases
such as expect, anticipate, estimate, believe, may, will, intend, plan,
continue, project, objective and other similar terms and phrases. These
statements are based on certain assumptions and analyses made by the Company
based on its experience and assessment of current conditions, known trends,
expected future developments and other factors it believes are appropriate
under the circumstances. Such statements are subject to numerous external
variables, both known and unknown, such as changes in commodity prices for
natural gas and oil, changes in drilling activity, weather conditions,
industry-specific and general economic conditions and exchange rate
fluctuations. If any of these risks and uncertainties materializes or if
assumptions are incorrect, actual results may differ materially from those
expressed or implied in the forward-looking statements. The forward looking
statements included in this news release are not guarantees of future
performance and should not be unduly relied upon.

    %SEDAR: 00011733E




For further information:

For further information: David Yager, Chairman & CEO, Telephone: (403)
266-1833, E-Mail: dyager@hseintegrated.com

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HSE Integrated Ltd.

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