H.E.R.C. Products Inc. Concludes Sale of Its Consumer Products Subsidiary

Business Wire, Dec 17, 1998

PHOENIX--(BUSINESS WIRE)--Dec. 17, 1998--H.E.R.C. Products Inc. (OTC BB:HERC)(BSE:HER) Thursday announced that it has concluded the sale of its consumer products subsidiary, H.E.R.C. Consumer Products Inc., to UNELKO Corp. of Scottsdale, Ariz.

UNELKO paid a cash consideration of $200,000 plus a 3% royalty of the adjusted revenue above $1 million for certain HERC consumer products for three years after the closing date. UNELKO has also purchased all remaining inventories of H.E.R.C. Consumer Products.

S. Steven Carl, HERC's chairman and chief executive officer, commented, "With the conclusion of this sale we have completed our goal of focusing the company on its primary technologies and core competencies. Our growth this year in pipe cleaning has allowed us to utilize the cash from this sale to retire our high interest loan and further reduce our overhead expense.

"With our continued growth in the fire protection and marine pipe cleaning businesses this positions us well for 1999."

H.E.R.C. Products Inc. develops, manufactures and markets patented products and services that eliminate and control chemical and biological corrosion on surfaces that come into contact with water and water based pipeline systems.

This press release contains forward looking information. Readers are cautioned not to place undue reliance on any such forward-looking statements, each of which speaks only as of the date made. Such statements are subject to certain risks and uncertainties which are disclosed in the company's SEC reports, including Form 10-KSB for the year ended Dec. 31, 1997.