HydraLogic Systems Inc.
TSX VENTURE : HLS

HydraLogic Systems Inc.

August 02, 2005 08:30 ET

HydraLogic Positioned to Launch Bug DeFence'TM' in Southern U.S. Market

BARRIE, ONTARIO--(CCNMatthews - Aug. 2, 2005) -

Company receives notice of U.S. patent filing

Commercial scale installations prove effective in tropical climates

HydraLogic Systems Inc. (TSX VENTURE:HLS) today announced that the Company's Bug DeFence™ Automated Misting System has received notice of its U.S. patent filing. This notice confirms that the issuance of a patent is pending in the United States for the Company's automated misting system as well as the organic repellents used by this system for the control of mosquitoes and other nuisance insects. The filing paves the way for the Company to proceed to the next stage of its plan to commercialize its organic mosquito repellent misting system in the southern United States.

The high population density and warm climate of the southern United States make this region one of the largest and fastest growing markets in North America for mosquito control systems. Research published in the June 9, 2004 issue of Pest Control Magazine confirmed that 25% of respondents to a nationwide survey indicated they were willing to purchase residential mosquito control services. In 2004, the U.S. structural pest control industry generated an estimated
US$ 6.5 billion and is expected to grow at an annualized rate of between 6.0 and 6.5 percent.

The Company also announced that it recently supplied Bug DeFence™ systems for installation in two large-scale resort properties in the Caribbean - privately-owned Necker Island (part of the British Virgin Islands www.necker.com ) and Oualie Beach Resort (on Nevis Island www.oualiebeach.com). The installation of Bug DeFence™ systems at these luxury resort properties represents the first application of HydraLogic's environmentally responsible technology on a commercial-scale in tropical climates where mosquito breeding creates a year-round challenge that can overwhelm traditional pesticide-based "knock-down" systems.

"The receipt of our U.S. patent filing notice along with the proven commercial-scale acceptance of BugDefence™ in tropical climates are building blocks that will support a more comprehensive and aggressive distribution strategy to penetrate the market for mosquito abatement systems in the southern U.S.," noted Michael Beckley, President & Chief Executive Officer of HydraLogic Systems Inc.

About HydraLogic Systems Inc. - www.hydralogic.ca

HydraLogic Systems Inc. is an environmental technology company that is focused on the replacement of harmful polluting chemicals with non-toxic environmentally responsible solutions. Its technologies are being commercialized through distribution partnerships with leading regional, national and international companies with clientele in the waste management, pest control and agricultural products industries.

This press release may contain forward-looking statements and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statement. Factors that impact such forward-looking statements include, among others, changes in general economic conditions, interest rates, government regulations, and competition. The Company disclaims any intention or obligation to update or revise any forward-looking statements unless required by applicable law.

The TSX VENTURE EXCHANGE has neither approved nor disapproved the contents of this press release.

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