HydraLogic Reports First Quarter 2008 Results

    Best Historical Q1 Results Announced with April/May Trending Towards
    Profitable Q2

    TORONTO, June 9 /CNW/ - HydraLogic Systems Inc. ("HydraLogic" or the
"Company") (TSX.V: HLS - OTC Pink Sheet: HYSYF) today announced the Company's
financial operating results for the three months ending March 31 2008, as

                   MARCH QUARTERLY HIGHLIGHTS - 2007 & 2008
    Information in table is thousands
    CDN $ except per share data            Three-Month Period       Change
    Period ended March 31st                  2008       2007       $      %
    Revenue                                $1,752     $1,458      $294   20%
    Gross Profit                            1,000        796      $204   26%
    EBITDA                                   (236)      (599)     $363   61%
    Net Loss                                 (317)      (745)     $428   57%
    Basic and diluted loss per share        (0.01)     (0.02)

    First Quarter 2008 Highlights:

    "We are happy to report to our shareholders that our first quarter
results represent a historical best financial Company performance," stated
Michael Beckley, President and Chief Executive Officer of HydraLogic Systems
Inc. "The increased revenues numbers in combination with a reduction in
operating expenses have delivered our lowest Q1 operating loss to date, and
have set the stage for what we anticipate to be our first profitable quarter
as we head into the heart of the mosquito and odor control season."
    "Our performance for the quarter is in-line with our internal
expectations and is a direct result of a very disciplined plan the Company set
for 2008 operations. The plan methodically focuses on steady growth in the
current business units while continuing to reduce operating costs, consolidate
operations and focus sales efforts in specific geographic areas for both odor
and mosquito control products, while also seeking out large national and
international distribution partners for our wholesale business. Over the last
five months management placed significant emphasis on strengthening our
operations and these results are the first reportable example of the success
of that planning and execution. Furthermore, I'm happy to report that
HydraLogic recently booked historically high revenues in the months of April
and May and this has set the trend for a profitable second quarter and set the
stage for a record year."
    "Today, we maintain leadership positions in the installation and service
of whole property mosquito control systems in our active operating areas of
South Florida and greater Houston with bookings for new installations at an
all time high. Additionally, HLS Ecolo has secured significant distribution
alliances with multi-billion dollar international companies for the sale of
its proprietary odor control chemistries into this extremely lucrative
industry. Similar relationships exist and are being further developed and
nurtured for our leading mosquito control product lines. Having only launched
meaningful commercial operations in 2006 for our best in class technologies,
we have experienced significant success in brand building and scale of
revenues in a relatively short period of time. As a result, we are very
excited about our future with the opportunity for HydraLogic to grow and
prosper being at its all time high. We look forward to reporting results of
future successes and opportunities beginning with our first profitable quarter
which we anticipate announcing in the near future," concluded Mr. Beckley.

    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, though 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, glen@bristolir.com

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