HydraLogic Reports Change to Loan Agreements

TORONTO, Aug. 13, 2013 /CNW/ - HydraLogic Systems Inc. ("HydraLogic" or the "Company") (NEX: HLS.H - OTC Pink Sheet: HYSYF) today announced that it has replaced the Convertible Promissory note and Security agreement, executed November 24, 2011, with a new Loan and Security agreement void of any convertible security features.

In the Company's April 10, 2013 application to the Ontario Security Commission (OSC), for a revocation of the Company's cease trade order, it was identified that the Company should not have issued the Secured Convertible Promissory Notes, totalling $100,000, during a period of cease trade. In cooperation with the Company's Lenders, the Promissory Note has been replaced in its entirety with a Loan Agreement void of any security features effective November 24, 2011. Copies of the Cancellation of the Secured Convertible Promissory Note Agreement, along with the new Loan and Security Agreements have been posted to SEDAR.

The Company remains on the NEX Board of the TSX Venture Exchange. Trading in the Company's securities remains suspended. The Company remains vigilant in pursuing all available options for the shell.

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 NEX Exchange does not accept responsibility for the adequacy or accuracy of this news release.

SOURCE: HydraLogic Systems Inc.

Michael Beckley  CEO

416 740 3900 ext 400