HydraLogic Signs Share Purchase Agreement for Subsidiaries

TORONTO, Jan. 12 /CNW/ - HydraLogic Systems Inc. ("HydraLogic" or the "Company") (TSX.V: HLS - OTC Pink Sheet: HYSYF) today announced the execution of a share purchase agreement with Samaritan Holdings Ltd (Samaritan), an affiliate of Equity Capital Management Ltd, based out of the United Kingdom, to purchase from the Company, all of the issued and outstanding shares in the capital of the Company's HLS Ecolo Inc. and HydraLogic Systems Corp business operations (the "Subs") for a maximum cash consideration of CDN$3,127,000, subject to adjustments.

The transaction as described in the news release of November 23rd, 2009, has been revised in structure from an asset purchase to a share purchase of the Company's Subs and is subject to TSX Venture and shareholder approval. Notice of a special meeting of the shareholders, to be held on or around the 5th of March, 2010, along with an information circular and proxy will be disseminated in the very near term.

Upon successful completion of the share purchase of the Company's operating assets the Company shell will remain with the shareholders and be transferred to the NEX Board of the TSX Venture Exchange.

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 turnkey 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

SOURCE HydraLogic Systems Inc.

For further information: For further information: Michael Beckley, President & CEO, (416) 740-3900 ext 400, beckley@hydralogic.com

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HydraLogic Systems Inc.

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