HydraLogic Announces Extension on Forbearance Agreement with Lender

HydraLogic Systems Inc. ("HydraLogic" or the "Company") (TSX.V: HLS - OTC Pink Sheet: HYSYF), today announced that CCM Master Qualified Fund, Ltd., the Company's ("Lender"), has agreed to further extension of the Forbearance Agreement through to November 30, 2009.

"We are in the process of reviewing various options currently available to us in our efforts to discharge the Lenders note", stated Michael Beckley, President and Chief Executive Officer of HydraLogic Systems Inc. "At this time, we are seeing substantially more interest in acquiring part and/or all of the operating assets of the Company by private equity firms, who, impressed that our operations are delivering a positive EBITA in these challenging economic times, see considerable value going forward."

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 laws.

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SOURCE: HydraLogic Systems Inc.

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

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