H.E.R.C. Products Inc. Reports Financial Results for the Year Ended Dec. 31, 1999.

Business Editors

PHOENIX--(BUSINESS WIRE)--March 24, 2000

H.E.R.C. Products Inc. (OTC BB: HERC; Boston Stock Exchange: HER) Friday released operating results for the year ended Dec. 31, 1999.

HERC reported its highest annual revenue from continuing operations in company history, a 140% increase in annual net income, a 22% increase in fourth quarter net income and an increase in its annual income from continuing operations of $555,000.

Years Ended Dec. 31, 1999 and 1998:

Revenue increased 10% to $3,490,000 for the year ended Dec. 31, 1999 from $3,169,000 for the year ended Dec. 31, 1998. Gross profit increased 2% to $1,876,000 in 1999 from $1,841,000 in 1998. Selling expenses increased 10% to $404,000 in 1999 from $367,000 in 1998 while general and administrative expenses decreased 5% to $1,551,000 in 1999 from $1,631,000 in 1998.

Net income increased 140% to $97,000 for the year ended Dec. 31, 1999 consisting of income from continuing operations of $24,000 and income from discontinued operations of $73,000. For the year ended Dec. 31, 1998, HERC's net income was $40,000 consisting of income from discontinued operations of $571,000 offset by a loss from continuing operations of $531,000.

Three Months Ended Dec. 31, 1999 and 1998:

Revenue increased 17% to $1,192,000 in the 4th quarter of 1999 compared to $1,022,000 for the same period in 1998. Gross profit decreased 11% to $574,000 in 1999 from $644,000 in 1998. Selling expenses increased 1% to $108,000 in 1999 from $107,000 in 1998 while general and administrative expenses increased 1% to $415,000 in 1999 from $409,000 in 1998.

Net Income for the quarter ended Dec. 31, 1999 increased 22% to $78,000 compared to $64,000 for the same period in 1998.

HERC also reported the following highlights from its Dec. 31, 1999 balance sheet:

-- Long-term debt of $6,000

-- Net working capital of $593,000

-- Total assets of $2,090,000

S. Steven Carl, chairman and chief executive officer stated, "HERC is currently focused on expanding and diversifying its business by increasing its pipe cleaning segment sales efforts in the fire protection and industrial pipe cleaning and corrosion control markets as well as in its industrial chemicals segment.

"We believe HERC is well positioned in 2000 for continued growth in revenue and net income."

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 years ended Dec. 31, 1998 and 1999.

H.E.R.C. Products Inc. provides pipe cleaning and other corrosion control services for multiple applications utilizing its proprietary and patented chemistry and processes.

HERC's patented chemistry and processes are currently used in cleaning marine, fire protection, potable water, chemical feed line and other industrial systems. HERC's chemistry is certified biodegradable and approved for use in potable water systems under NSF Standard 60.

               H.E.R.C. Products Inc. and Subsidiaries

                 Consolidated Statements of Operations

                                               Years Ended Dec.31,
                                               1999          1998
                                               ----          ----

Sales                                    $  3,489,743   $ 3,168,955
Cost of Sales                               1,613,620     1,327,782

Gross Profit                                1,876,123     1,841,173
Selling Expenses                              403,955       366,946
General and Administrative
 Expenses                                   1,550,992     1,630,966

Operating Loss                                (78,824)     (156,739)

Other Income (Expense)
 Interest expense                             (18,105)      (85,760)
 Miscellaneous                                 24,698        18,760
 Expenses relating to settlement
  of lawsuits                                    --        (120,000)
 Gain (loss) on sale or disposal
  of equipment                                 96,028      (265,222)
 Gain on sale of patent                          --          77,597

      Total Other Income (Expense)            102,621      (374,625)

Income (Loss) from Continuing
 Operations before Income Taxes                23,797      (531,364)
     Income tax provision                        --            --

Income (Loss) from Continuing
 Operations                                    23,797      (531,364)
Discontinued Operations:
  Income from Operations of
   Discontinued Segments                         --         256,792
  Income from Disposition of
   Discontinued Segments                       73,063       315,002

Net Income                               $     96,860   $    40,430


Income (Loss) per Common Share -
 Basic and Diluted

Income (Loss) from Continuing
 Operations                                      --     $     (0.05)
Income from Discontinued Operations              0.01          0.05

Net Income per Common Share              $       0.01   $      --


Weighted Average Common Shares
 Outstanding:
Basic                                      11,596,318    10,391,936

Diluted                                    11,658,081    10,391,936