CALGARY, Jan. 5 /CNW/ - HSE Integrated Ltd. ("HSE" or the "Company") reports that in the fiscal year ended December 31, 2008 the Company reduced its senior secured bank debt and capital lease obligations by a total of $5.1 million.

The significant debt reduction was made possible by significantly improved financial performance; sales of non-core assets; and reduced days outstanding of accounts receivable.

In the 12 months ended December 31, 2008, obligations outstanding under capital leases on field service vehicles were reduced by $1.5 million from $2.8 million to $1.3 million. Senior secured revolving term bank debt was paid down by $3 million from $13.8 million to $10.8 million. This interest-only facility comes due in June, 2010 and has authorized borrowing levels of up to $25 million. The bank operating credit line outstanding was reduced from $0.6 million on December 31, 2007 to $nil as at December 31, 2008. The Company had $1.1 million in cash on December 31, 2008. The bank operating credit line facility is secured by accounts receivable and has authorized borrowing levels of up to $7.5 million.

David Yager, Chairman and CEO, had the following comments on the Company's overall debt position at the end of the 2008 fiscal year.

"In 2008 the continued growth in our Industrial safety services division - combined with an ongoing internal focus on efficiency, profitability and cash management - enabled HSE to substantially reduce its debt obligations going into 2009. This will enhance our flexibility as we move into what appears to be a challenging year for the economy. HSE had a strong balance sheet at September 30, 2008 and that position improved at December 31."

HSE is an integrated, national supplier of industrial Health, Safety and Environmental services. From its head office in Calgary, Alberta, it serves its clients from field service locations in Alberta, British Columbia, Saskatchewan, Ontario, Nova Scotia, New Brunswick and Michigan. HSE also operates in Odessa, Texas and Oklahoma City, Oklahoma, under through a jointly owned company called Boots & Coots HSE Services LLP. HSE trades on the TSX under the symbol "HSL".

Forward Looking Statements

This news release may contain forward-looking statements concerning, among other things, the Company's prospects, expected revenues, expenses, profits, financial position, strategic direction, and growth initiatives, all of which are subject to risks, uncertainties and assumptions. These forward-looking statements are identified by their use of terms and phrases such as expect, anticipate, estimate, believe, may, will, intend, plan, continue, project, objective and other similar terms and phrases. These statements are based on certain assumptions and analyses made by the Company based on its experience and assessment of current conditions, known trends, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to numerous external variables, both known and unknown, such as changes in commodity prices for natural gas and oil, changes in drilling activity, weather conditions, industry-specific and general economic conditions and exchange rate fluctuations. If any of these risks and uncertainties materializes or if assumptions are incorrect, actual results may differ materially from those expressed or implied in the forward-looking statements. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon.

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