February 19, 2008 at 07:00 AM EST
HS3 Technologies, Inc. Announces Record Revenues and Strong Financial Improvement for Its Fiscal Year 2008 Second Quarter

DENVER, CO -- (MARKET WIRE) -- 02/19/08 -- HS3 Technologies, Inc. (OTCBB: HSTH), a worldwide provider of innovative security solutions, is pleased to announce record revenues and strong financial improvement for the three months ended December 31, 2007, as recently reported in our quarterly report filed for the period.

Second Quarter of Fiscal 2008 Highlights:

--  Net revenues increased 590% from $153 thousand in the first quarter to
    over $1 million in the second quarter 2008.

--  Gross profit increased 262% from $113 thousand in the first quarter of
    the 2008 to $411 thousand in the second quarter of 2008.

--  Achieved a gross profit margin of 39% in the second quarter.

--  Operating loss decreased from ($508 thousand) in the first quarter of
    2008 to ($152 thousand) in the second quarter of 2008.

--  Net income loss also decreased from ($513 thousand) in the first
    quarter of 2008 to ($158 thousand) in the second quarter of 2008.
    

Second Quarter of Fiscal 2008 Results

For the second fiscal quarter of 2008, sales increased to $1.05 million, an increase of $900K over the first quarter of this fiscal year. The increase in sales reflected improved market penetration for capital goods and increasing acceptance of HS3 Technologies, Inc. as a trusted security solution partner for major projects, particularly in the Government and Hospitality sectors.

"We are extremely pleased with the results of this quarter and the six month period ended December 31, 2007. We are even more excited about the future at HS3 Technologies, given the increased interest and acceptance of our security solutions," said CEO Mark Lana. "The sales and technology strategy we have implemented, along with the introduction of key partner relationships will continue to focus our company in a direction which will establish us as a trusted security solutions architect firm. We believe we are positioned for significant growth because of the strong strategic partnerships we have developed within our industry," added Mr. Lana.

Business Outlook

HS3 Technologies, Inc. is anticipating significant growth over the next 4 - 6 months; this is attributed to end stages of large security sales cycles, and new solutions partnerships we have established. We feel we are taking the industry by storm with our innovative approach and strategic solution designs which directly relate to the end users business needs and provide a tangible return on investments.

HS3 has established strong partnerships with industry leaders in RFID access controls, high tech vascular biometrics, physical-to-logical convergence, logical network forensics, security assessments and auditing as well as state-of-the-art portal technology.

Furthermore, we are repositioning our organization to provide streamlined processes that will align our business to our customers' specific needs. This strategic realignment has developed vertical markets for our sales force, and our strategic partners, that will allow us to customize solutions for each business opportunity.

About HS3 Technologies, Inc.

HS3 Technologies, Inc. (HS3) is a national provider of innovative security solutions, headquartered in Denver, Colorado. HS3 provides technologies and services through a strong national dealer and distribution program and direct sales associates. Utilizing these resources, HS3 offers custom security solutions for commercial, residential, government and military applications. These state-of-the-art products include digital video recording technology (DVR), biometric access control (access control), video monitoring centers with certified monitoring agents, wireless mesh networks, logical security solutions and tactical deployment solutions for remote requirements or covert surveillance requirements. All of these deployment systems can be monitored by our corporate agents and can be connected to HS3 Technologies by cellular networks, wireless networks, or Satellite networks. HS3 Technologies Inc. is bringing together technologies, services and people to provide complete awareness, anywhere, anytime to fulfill the increasing global security needs of today and tomorrow.

Forward-Looking Statement Disclaimer

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, continued market penetration and increased acceptance of our products, future significant growth, further strategic partnerships, and specifically any significant growth over the next 4 to 6 months.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage technology company and its products and the entry into new markets for our products and services. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our recent current reports on Form 8-K, our annual report on Form 10-KSB, our quarterly reports on Form 10-QSB and other periodic and current reports filed from time-to-time with the Securities and Exchange Commission.

Contact:
HS3 Technologies, Inc.
Mark Lana
303-455-2550
www.hs3tech.com

Info: sales@hs3tech.com

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