HydraLogic Systems Inc.
TSX VENTURE : HLS

HydraLogic Systems Inc.

October 07, 2005 07:00 ET

HydraLogic Undertakes Financing

BARRIE, ONTARIO--(CCNMatthews - Oct. 7, 2005) - HydraLogic Systems Inc. (TSX VENTURE:HLS) is pleased to announce that it has entered into an engagement agreement with Kingsdale Capital Markets Inc. ("Kingsdale") for a proposed offering by way of private placement, on a "best efforts" basis, of up to 8,000,000 units of the Company to be issued at a price of $0.50 per unit for total proceeds of up to $4,000,000. Each unit will consist of one common share and one-half of one share purchase warrant. Each whole share purchase warrant will entitle the holder thereof to purchase one common share of the Company at a price of $0.70 per share for a period of twenty-four (24) months following the issuance thereof.

Completion of the offering is subject to receipt of all necessary regulatory and other approvals, including approval of the TSX Venture Exchange.

The proceeds of the offering is intended to be used to fund the previously-announced proposed acquisition by HydraLogic of Sager Industries Limited (which is subject to completion and approval by the TSX Venture Exchange) and for general corporate purposes.

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 organic 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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