Epolin, Inc. Announces $0.02 Special Cash Dividend to Be Paid January 3, 2007

NEWARK, NJ -- (MARKET WIRE) -- December 5, 2006 -- EPOLIN, INC. (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 3, 2007 to shareholders of record at the close of business on December 18, 2006.

Murray S. Cohen, Ph.D., Chairman of the Board, stated, "We are pleased to announce the payment of this special dividend which is in addition to the regular annual dividend we intend to pay to shareholders pursuant to the dividend policy our Board of Directors adopted earlier this year. Under that policy, as we previously announced, we intend to issue a regular annual dividend, the amount of which, record and payment date will be subject to approval every year by the Board. Such first regular dividend under that policy was paid on May 1, 2006. When we adopted the policy, we indicated that subject to future analyses of our cash resources and projected cash needs, the Board may issue a special cash dividend from time to time as well. The dividend we are announcing today is the first such special cash dividend since we adopted the dividend policy."

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, 2006 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.

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