(STOCK SYMBOL - TSX, "HED")

Hedley Announces Results

for the Second Quarter 2002

Mississauga, Ontario (August 9, 2002) Hedley Technologies Ltd. reports the second quarter results.

Dear shareholder,

    Sales for the six months ending June 30, 2002 of $154,760 were very close to the same period last year of $153,073.Although expenses were up $23,163 from 2001, to $404,252 the loss for the period was down $2,237.  The net loss per share of 3 cents is the same as last year at this time. It is interesting to note that 2002 product sales of $154,069 are made up totally from sales of Protect-It. Whereas last year product sales were only $89,334 from Protect-It and $62,242 from Insecolo. Hedley realizes a greater gross margin from Protect-It. This is reflected in this June’s gross profit margin of $102,676 versus last year’s $78,664. Our main buyer of Insecolo is manufacturing the product at their own facility. We expect to receive royalty payments from this customer in the later part of this year.

    A third consecutive drought in many areas of Western Canada, combined with inclement weather in the USA, has resulted in the lowest North American wheat production since the late 1970’s. Unfortunately, this will directly impact Protect-It sales for the year.   It is to early to determine how much the reduction in crops will affect our sales, particularly since harvest is at least three weeks later than normal and there is the possibility of securing new customers.

   At Hedley’s Annual General Meeting on June 26, 2002, Peter D. Lockhard, a principal of Aquiam Partners Ltd., the largest shareholder company, was elected to the Board of Directors.

    In early July, Hedley reached an agreement with Astral Industrial Products Ltd. and Ms. Diane Tucker to settle all outstanding debts and to buy out all future royalty payments for Insecolo in return for $35,000 cash payment and 25,000 common shares of Hedley to be issued at a deemed value of $0.10 per share. Hedley had a past obligation to pay royalties to Astral and Tucker and was in default of these payments and indebted to Astral and Tucker in the amount of $70,000.

I look forward to reporting on our progress in the coming months.

On behalf of the Board,

Douglas R. Larson
President & COO

Consolidated Financial Highlights

For the six months ended June 30, 2002 and 2001

Canadian $

	June 30, 2002	June 30, 2001
Revenues	$ 154,761	$ 153,073
Loss for the Six months	$ 300,182	$ 302,319
Loss per share	$ 0.033	$ 0.033
Weighted average shares outstanding	9,170,195	9,170,195

All figures unless otherwise noted are reported in accordance with Canadian Generally Accepted Accounting Principles.

E-mail:hedinfo@attglobal.net

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