EXHIBIT 99 (1)
                                  RISK FACTORS

CURRENT   PROFITABLE   PERIODS  MAY  NOT  INDICATE  PERMANENT  TREND.  HERC  had
substantial  losses from  continuing  operations for each fiscal year from 1994,
the year it went  public,  until  1998.  HERC  reported a profit for each of the
quarters ended September 30, 1998 and December 31, 1998.  Although HERC believes
that the  revenues  will  continue to grow and it will operate  profitably  on a
current  basis,  it is possible  that HERC will not be profitable in the future.
The  current  trend of  profit  should  not be taken as an  assurance  of future
profitable periods.

HERC MAY NEED FINANCING IN THE FUTURE AND DOES NOT HAVE ANY COMMITTED SOURCES OF
FINANCING.  If HERC is not  profitable  in the future for an extended  period of
time, it will require additional  financing to cover operating  expenses.  Also,
any major capital  expenditures will require capital from independent  financing
sources.  HERC does not have any accumulated retained earnings to fund cash flow
deficits  and  significant  capital   requirements.   HERC  does  not  have  any
specifically identified sources for future financing requirements.

THE CURRENT DEPENDENCE ON ONE SIGNIFICANT CUSTOMER HAS THE POTENTIAL FOR ADVERSE
FINANCIAL  RESULTS.  During the most recent fiscal year,  the United States Navy
accounted for approximately 66 % of the HERC revenues. The loss of a substantial
portion or all of the  business  from this  customer  will  result in a material
adverse  effect on the revenues and profits of HERC.  If the United  States Navy
cuts back or stops using HERC,  the sales staff may not be able to replace  this
customer in a timely enough fashion for HERC to continue operations.

POTENTIAL COMPETITION EXISTS FOR CUSTOMERS IN THE MARINE BUSINESS. HERC believes
that there are no  substantial  capital  requirements  for or other  barriers to
entry into the  chemical  cleaning  of pipe  systems  for the  marine  industry.
Therefore, there is potential competition from entities that elect to enter into
this growing industry.  As with any competition,  there may be an adverse effect
on market share and current margins of HERC.

THE LACK OF  PATENTS  MAY LIMIT  THE  ABILITY  OF HERC TO  PROTECT  ITS  CURRENT
COMPETITIVE  POSITION IN THE MARINE BUSINESS.  HERC competes on the basis of its
knowledge and  experience of marine and other closed loop systems.  The chemical
products used in the marine  business are based on  proprietary  chemistry,  but
this chemistry is not patented or, HERC believes, patentable.  Therefore, others
may develop the same  chemistry  through  reverse  technology  methodology or by
experimentation.  If that happens,  another entity could offer the same benefits
as HERC and increase the competition in the marine pipe systems cleaning.  Also,
the lack of patents  limits the ability of HERC to market an  absolutely  unique
product or service.  HERC relies on trade secret and confidentiality  protection
with respect to the chemicals and  methodologies it uses in its marine business.
It is  possible  that these  means  will not be  adequate  to protect  HERC from
competitors.

EFFECT OF  PRODUCT  LIABILITY  CLAIMS IN EXCESS OF THE  INSURANCE  LIMITS  COULD
AFFECT THE FINANCIAL CONDITION OF HERC. HERC is engaged in a business that might
expose it to claims for  personal  or  property  injury.  Suits may result  from
personnel who are injured on site or from damage to a pipe system being cleaned.
HERC has not been  sued to  date.  HERC  maintains  liability  insurance  in the
aggregate  amount of $2,000,000 and $1,000,000 per occurrence.  HERC also has an
umbrella liability policy in the amount of $3,000,000.  If there is a successful
claim  against  HERC that is in excess  of the  insurance  limits or that is not
covered, HERC would have a material adverse effect on its financial condition.

HERC DEPENDS ON THIRD PARTY SUPPLIERS WHICH, IF LOST,  MIGHT DISRUPT  OPERATIONS
OR EFFECT  MARGINS.  Some of the chemical  products that are used in pipe system
cleaning must be packed to NFS standards.  There are only a few suppliers  which
meet these requirements. If the current supplier is unable to or will not supply
HERC,  or  becomes  too  expensive,  HERC  may have  difficulty  in  finding  an
alternative supplier. If HERC is not prepared for a change in suppliers, it will
disrupt its business because it does not maintain any significant inventories of
the items it obtains  from this  supplier.  Also,  any change in  suppliers  may
result in higher prices which might lower margins and profits.
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EFFECT  OF  OUTSTANDING  RESTRICTED  COMMON  STOCK ON  FUTURE  SALES BY HERC AND
STOCKHOLDERS.  HERC sold an aggregate of 3,240,000 shares of common stock in the
fiscal  quarter ended June 30, 1998 at $.31 per share.  This amount  represented
about  30% of  the  current  outstanding  common  stock  immediately  after  the
transaction.  These shares were sold to finance the  business in 1998.  One year
after the date of sale,  these  shares  will  become  eligible  for public  sale
without any registration  statement.  As a result there may be an adverse impact
on the price and liquidity of the common stock in the public  market  because of
the volume of their possible sale.

EFFECT OF OUTSTANDING  OPTIONS AND WARRANTS ON MARKET PRICE AND LIQUIDITY.  HERC
has issued options and warrants to purchase 6,210,382 shares of common stock. Of
that number,  3,214,902  shares are subject to warrants  that expire on April 3,
1999 and are  exercisable  at $2.00 per  share.  Of the  remaining  options  and
warrants after April 3, 1999,  about 30% of them have a purchase price per share
at less than the  current  market  price of the common  stock and are  currently
exercisable  and may be sold in the public market.  The existence of the options
and warrants may have an adverse impact on the price and liquidity of the common
stock in the public  market  because of the  overhang  they  create.  Also,  the
issuance  of these  shares  at prices  below the  market  price  will  result in
dilution to current shareholders.

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