HSE reduces debt by $5.1 million in 2008



    CALGARY, Jan. 5 /CNW/ - HSE Integrated Ltd. ("HSE" or the "Company")
reports that in the fiscal year ended December 31, 2008 the Company reduced
its senior secured bank debt and capital lease obligations by a total of $5.1
million.
    The significant debt reduction was made possible by significantly
improved financial performance; sales of non-core assets; and reduced days
outstanding of accounts receivable.
    In the 12 months ended December 31, 2008, obligations outstanding under
capital leases on field service vehicles were reduced by $1.5 million from
$2.8 million to $1.3 million. Senior secured revolving term bank debt was paid
down by $3 million from $13.8 million to $10.8 million. This interest-only
facility comes due in June, 2010 and has authorized borrowing levels of up to
$25 million. The bank operating credit line outstanding was reduced from $0.6
million on December 31, 2007 to $nil as at December 31, 2008. The Company had
$1.1 million in cash on December 31, 2008. The bank operating credit line
facility is secured by accounts receivable and has authorized borrowing levels
of up to $7.5 million.
    David Yager, Chairman and CEO, had the following comments on the
Company's overall debt position at the end of the 2008 fiscal year.
    "In 2008 the continued growth in our Industrial safety services division
- combined with an ongoing internal focus on efficiency, profitability and
cash management - enabled HSE to substantially reduce its debt obligations
going into 2009. This will enhance our flexibility as we move into what
appears to be a challenging year for the economy. HSE had a strong balance
sheet at September 30, 2008 and that position improved at December 31."
    HSE is an integrated, national supplier of industrial Health, Safety and
Environmental services. From its head office in Calgary, Alberta, it serves
its clients from field service locations in Alberta, British Columbia,
Saskatchewan, Ontario, Nova Scotia, New Brunswick and Michigan. HSE also
operates in Odessa, Texas and Oklahoma City, Oklahoma, under through a jointly
owned company called Boots & Coots HSE Services LLP. 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: HSE Integrated Ltd., David Yager, Chairman &
CEO, Telephone: (403) 266-1833, E-Mail: dyager@hseintegrated.com; Lori
McLeod-Hill, CFO, Telephone: (403) 266-1833, E-Mail:
lmcleod-hill@hseintegrated.com

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HSE Integrated Ltd.

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