HydraLogic Completes Asset Purchase of Third Coast Mosquito Control



    Bug Defense Becomes Largest Home Services Mosquito Control Company in
    South Florida and Greater Houston Area

    TORONTO, June 5 /CNW/ - HydraLogic Systems Inc. ("HydraLogic" or the
"Company") (TSX.V: HLS) today announced that it signed an agreement to acquire
all the assets and operations of Houston, Texas based Third Coast Mosquito
Control ("Third Coast") for USD $1.5 million in combined cash and common
shares. Third Coast is a well established privately held mosquito control
services company with nearly 600 customers in the greater Houston market and
is supported by a network of over 50 dealers in 12 Southern US States. This
dealer network will immediately incorporate the industries fastest growing
green solutions mosquito control Bug DeFence(TM) product line. As part of the
asset purchase, HydraLogic will also become owner of an additional line of
proprietary, patent pending, and value added mosquito control products
currently being sold.
    This transaction follows the June 2006 asset purchase of Bayou City
Mosquito Control of Houston, Texas and the February, 2007 purchase of M-Nix
Systems in Fort Lauderdale, Florida. The purchase of these operations combined
with HydraLogic's organic growth has established a base of approximately 2500
customers in just a period of twelve months. In this very short period of
time, the successful commercial product launch and established distribution
combined with the proprietary nature of the Company's Bug DeFence(TM) mosquito
control technologies has created a brand of distinction and a model for
success. As a result, the Company's Bug DeFence(TM) "Home Services" divisions
are now the largest residential mosquito control service companies operating
in Fort Lauderdale/Miami and greater Houston.
    Acquisitions like Bayou City, M-Nix and Third Coast, combined with strong
organic growth as Bug DeFence(TM) "Home Services" are also aiding in the
acceleration of the Company's wholesale dealer program now nearing 90
companies in the Southern United States and position the company for its store
retail products expected to be launched later this year. Third Coast achieved
unaudited revenues of USD $1.65 million in 2006 which the Company expects to
grow through the consolidation of operations and products at its head office
in Houston.
    "Having first introduced Bug DeFence(TM) in the United States through the
Bayou City asset purchase only last June, the Company has already achieved
milestone success and is in a leadership position in one of the fastest
growing segments in the North American pest control industry," stated Michael
Beckley, Chief Executive Officer of HydraLogic. "Our investment into
intellectual property, strategic acquisitions and branding as Bug DeFence(TM)
"Home Services" has caught the competition by surprise. This has enabled us
the opportunity to continue to capture increased market share, further
solidify our leading brand and establish a framework for both a short and long
term growing revenue base that will lead to future earnings and increased
enterprise value for our shareholders".

    About HydraLogic Systems:

    HydraLogic is an innovator of engineered misting systems and proprietary
environmental chemistries with reoccurring revenue distribution platforms. The
company strives to be market leaders in providing technologies, through turn
key distribution and service models into the multi-billion dollar mosquito and
odour control industries as Bug DeFence and HLS Ecolo respectively. HydraLogic
Systems is traded on the TSX Venture exchange - symbol: HLS.

    Forward Looking Statements

    This press release contains certain "forward looking statements". These
statements relate to future events or future performance and reflect
expectations and belief regarding growth, results of operations, performance,
business prospects, opportunities or industry performance and trends. These
forward looking statements reflect current internal projections, expectations
or beliefs and are based on information currently available. A number of
factors could cause actual events or results to differ materially from the
results discussed in the forward looking statements. Although it is believed
that the forward looking statements contained in this press release are based
upon reasonable assumptions, investors cannot be assured that actual results
will be consistent with these forward looking statements. These forward
looking statements are made as of the date of this press release, and
HydraLogic Systems Inc. assumes no obligation to update or revise them to
reflect new events or circumstances, except as required pursuant to applicable
securities laws.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.

    %SEDAR: 00020350E




For further information:

For further information: Glen Akselrod, Bristol Capital Ltd., (905)
326-1888, iglen@bristolir.com

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HydraLogic Systems Inc.

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