Epolin, Inc. Announces $0.02 Special Cash Dividend to Be Paid on January 7, 2008; Also Announces Results for the Second Quarter of Fiscal 2008

NEWARK, NJ--(Marketwire - October 15, 2007) - EPOLIN, INC. (the "Company") (OTCBB: EPLN) (www.epolin.com) today announced that its Board of Directors has declared a special cash dividend of $0.02 per share to be payable on January 7, 2008 to shareholders of record at the close of business on December 20, 2007. The Company also announced its results for the three and six months ended August 31, 2007.

The Company reported that the special cash dividend represents the second such special dividend declared by the Board since it adopted a dividend policy in April 2006. Under the dividend policy, the Company intends to issue a regular annual cash dividend and may issue a special cash dividend from time to time as well. Since the adoption of the dividend policy, the Company has issued two regular annual cash dividends and issued one other special cash dividend in January 2007.

With regard to the results announced today, the Company reported that for the three months ended August 31, 2007, sales were $1,093,000 as compared to $951,000 for the three months ended August 31, 2006, an increase of $142,000 or 14.9%. Sales decreased to $1,935,000 for the six months ended August 31, 2007 from $2,045,000 for the six months ended August 31, 2006, a decrease of $110,000 or 5.4%. Gross profit, defined as sales less cost of sales, was $645,000 or 59.0% of sales for the three months ended August 31, 2007 compared to $518,000 or 54.5% of sales for the three months ended August 31, 2006. For the six months ended August 31, 2007, gross profit was $1,158,000 or 59.8% of sales compared to $1,173,000 or 57.4% of sales for the six months ended August 31, 2006.

Cost of sales was $448,000 for the three months ended August 31, 2007 which represented 41.0% of sales compared to $433,000 for the three months ended August 31, 2006 which represented 45.5% of sales. For the six months ended August 31, 2007, cost of sales was $777,000 which represented 40.2% of sales, compared to $872,000 for the six months ended August 31, 2006 which represented 42.6% of sales. Selling, general and administrative expenses, although relatively unchanged, decreased to $343,000 or 31.4% of sales, for the three months ended August 31, 2007 from $352,000 or 37.1% of sales for the three months ended August 31, 2006, a decrease of $9,000. Selling, general and administrative expenses decreased to $639,000 or 33.0% for the six months ended August 31, 2007 from $648,000 or 31.7% of sales for the six months ended August 31, 2006, a decrease of $9,000.

Operating income increased to $302,000 for the three months ended August 31, 2007 from $165,000 for the prior year period, an increase of $137,000, although operating income for the six months ended August 31, 2007 decreased to $519,000 from $524,000 for the prior year period, a decrease of $5,000. Net income after taxes was $197,000 or $0.02 per share for the three months ended August 31, 2007 as compared to net income after taxes of $121,000 or $0.01 per share for the three months ended August 31, 2006. For the six months ended August 31, 2007, net income after taxes was $350,000 or $0.03 per share as compared to net income after taxes of $347,000 or $0.03 per share for the six months ended August 31, 2006.

About Epolin

Epolin, Inc. is a specialized chemical company primarily engaged in the manufacturing, marketing, research and development of infrared dyes, laser absorbing dyes and infrared dye formulations. The Company's business is heavily weighted towards the development, manufacture and sale of near infrared dyes. Applications for these dyes cover several markets that include laser protection, welding, sunglasses, optical filters, glazing and imaging and security inks and tagants. The Company also manufactures specialty chemicals for certain chemical manufacturers.

Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words "anticipate," "believe," "estimate," "plan," "intend" and "expect" and similar expressions, as they relate to Epolin, Inc., or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors discussed in the Company's Annual Report on Form 10-KSB for the fiscal year ended February 28, 2007 under the caption "Uncertainties and Risk Factors" in Part I, Item 1 "Description of Business." Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or for any other reason.

                            EPOLIN, INC. AND SUBSIDIARY
                         CONSOLIDATED STATEMENTS OF INCOME
                     SIX MONTHS ENDED AUGUST 31, 2007 AND 2006


                                                    2007          2006
                                                ------------  ------------
Sales                                           $  1,934,559     2,044,981
                                                ------------  ------------

Cost of sales and expenses:
  Cost of sales                                      776,556       872,045
  Selling, general and administrative                638,999       648,495
                                                ------------  ------------
    Total                                          1,415,555     1,520,540
                                                ------------  ------------
Operating income                                    519,004        524,441
                                                ------------  ------------
Other income:
  Rental income                                        9,000        12,000
  Interest                                            27,184        27,466
                                                ------------  ------------
    Total                                             36,184        39,466
                                                ------------  ------------
Income before taxes                                  555,188       563,907
Income taxes                                         205,548       216,959
                                                ------------  ------------
Net income                                      $    349,640       346,948
                                                ============  ============
Per share data:
  Basic earnings per common share               $       0.03          0.03
                                                ============  ============
  Fully diluted earnings per common share       $       0.03          0.03
                                                ============  ============
  Weighted average number of common shares
   outstanding                                    11,966,355    11,966,355
                                                ============  ============
  Fully diluted number of common shares
   outstanding                                    12,003,424    12,053,560
                                                ============  ============


                             EPOLIN, INC. AND SUBSIDIARY
                          CONSOLIDATED STATEMENTS OF INCOME
                     THREE MONTHS ENDED AUGUST 31, 2007 AND 2006

                                                    2007          2006
                                                ------------  ------------
Sales                                           $  1,092,558       950,911
                                                ------------  ------------
Cost of sales and expenses:
  Cost of sales                                      447,900       433,127
  Selling, general and administrative                343,000       352,379
                                                ------------  ------------
    Total                                            790,900       785,506
                                                ------------  ------------
Operating income                                     301,658       165,405
                                                ------------  ------------
Other income:
  Rental income                                        9,000         7,500
  Interest                                            12,244        21,924
                                                ------------  ------------
    Total                                             21,244        29,424
                                                ------------  ------------
Income before taxes                                  322,902       194,829
Income taxes                                         126,038        73,780
                                                ------------  ------------
Net income                                      $    196,864       121,049
                                                ============  ============
Per share data:
  Basic earnings per common share               $       0.02          0.01
                                                ============  ============
  Fully diluted earnings per common share       $       0.02          0.01
                                                ============  ============
  Weighted average number of common shares
   outstanding                                    11,966,355    11,966,355
                                                ============  ============
  Fully diluted number of common shares
   outstanding                                    12,003,424    12,053,560
                                                ============  ============

Contact Information: For more detailed information, please contact: Murray S. Cohen Chairman of the Board James Ivchenko President Greg Amato Chief Executive Officer (973) 465-9495