SOURCE: Megola Inc.

January 15, 2008 14:03 ET

Megola Inc. Provides Corporate Update

CORUNNA, ON--(Marketwire - January 15, 2008) - Megola Inc. (PINKSHEETS: MGOA) is pleased to provide shareholders with the following progress report in order to update financial filings, highlight the achievements and milestones recorded in 2007 and provide management's outlook for 2008.

FINANCIALS

With the recent filing of 2007's Q1, Megola looks to quickly furnish financial reports for the remaining outstanding quarters and begin the process of reestablishing MGOA on the OTCBB.

"Since our initial late filing prompted us to change both our accounting and auditing firms it has been a long and laborious road in getting all of our financial data prepared and audited," states Daniel Gardner, Megola General Manager. "It has been our goal all along to get back onto the OTCBB, and in working closely with both Sloan and SLF to redo our entire financial records for 2007, we finally look poised to do so."

2007 IN REVIEW

A year ago, on January 16, 2007, Megola made the most significant announcement in the company's short history. After months of negotiation it was announced that Megola had acquired the exclusive North American manufacturing and Canadian distribution rights to some of the most technologically advanced and environmentally friendly fire inhibitor and fire suppression products in the world. In obtaining the Hartindo product line, Megola entered a whole new world of sales and distribution possibilities and, as the remainder of the year would show, began a very planned and deliberate introduction of these revolutionary fire safety products.

February saw the first product introductions as AF11E, a direct 1:1 halon replacement, and AF21, a complete fire inhibitor were featured. In the coming months AF31, a multi-purpose extinguishing agent, and Dectan, a water-based rust inhibitor with heat resistant properties would also be introduced.

Megola would begin to orchestrate the first product shipments in order to initiate testing to North American standards.

In June, Megola would join forces with MSE Enviro-Tech Corp., the exclusive distribution agent in the US, to collaborate on product testing and marketing awareness.

In October, Megola announced that Pacific Channel Ltd. (PCL), the licenser of Hartindo Anti-Fire products, had issued Megola an interest-free loan to aid in the research and development required to bring these products to the North American market. In July, PCL assumed and extended a funding agreement Megola had previously established with FireStop USA, LLC.

Product Testing

In order to obtain the required certifications for the Hartindo product line in North America, a series of tests that complied with North American standards commenced in the summer of 2007 at independent testing laboratories.

In August 2007, Hartindo AF21 Fire Inhibitor was awarded a Class A rating following an ASTM E-84-07 Surface Burning Test. In September, AF21 passed the requirements of the new U.S. National Flammability Standard for Mattresses through additional independent testing.

In November, Hartindo AF31, a multi-purpose, water-based, non-toxic and non-corrosive fire extinguishing and fire inhibiting agent also earned a Class A rating in successful independent testing to the ASTM E-84-07 Standard.

November would also see the Hartindo Titan 21 Fire Blanket pass NFPA 701 testing at an independent laboratory, followed by passing NFPA 2112 testing in December.

Letters of Intent (LOI), Memorandums of Understanding and Intent (MOUI), Definitive Agreements

On September 5, 2007, Megola, in collaboration with MSE Enviro-Tech Corp., announced that it had jointly signed a Letter of Intent "LOI" with WoodSmart Solutions, Inc. to test the feasibility of incorporating the Hartindo AF21 Fire into WoodSmart's BluWood® treated wood products. Subsequent testing was encouraging and the parties to the LOI continue to work towards final testing of the BluWood ® Hartindo 21 product and a definitive agreement.

In November, Megola, in collaboration with MSE Enviro-Tech Corp., signed a joint Memorandum of Understanding and Intent "MOUI" with Logistik Unicorp Inc. and CTT Group Inc. to establish distribution of Hartindo AF21 within the textile industry in North America.

Also in November, Megola, in collaboration with MSE Enviro-Tech Corp., announced the signing of a definitive marketing and distribution agreement with Janus Products Corp. (Janus) for distribution and sales of the Titan 21 Fire Blanket for the residential markets within Canada and the United States. In December, Megola announced receipt of its initial purchase order from Janus for deliveries of the Titan 21 Fire Blanket through the first quarter of 2008.

In Toronto, on November 12, Megola and MSE successfully demonstrated the effectiveness of the Hartindo fire suppression products at the state-of-the-art Fire and Emergency Services Training Institute (FESTI), which is part of the Greater Toronto Airports Authority.

Following the demonstrations, Megola entered into a Memorandum of Understanding and Intent "MOUI" with Hazmat4U and Hazmat1 -- divisions of 6841309 Canada Inc. -- to establish a supply agreement that will provide Hartindo AF11E, AF21 and AF31 for use in the Hazardous Materials and Fire and Emergency Services industries in Canada.

2008 AND BEYOND

While 2007 was highly focused on Hartindo, Megola continued with its water and air purification divisions. In the coming year, the Hartindo product line will again be the main focus, but continuing to establish and service distributors of ScaleGuard and AirGuardian systems will remain a priority.

Megola remains committed to growing the company with environmentally friendly and technically advanced products and solutions. The Company believes that long-term growth and profitability will be accomplished both through potentially major Agreements with distributors and end users such as WoodSmart Solutions, Inc., Logistik Unicorp Inc./CTT Group Inc., Hazmat4U/Hazmat1 and Janus Products Corp., and through other distributors and agents across North America.

Joel Gardner, President & CEO of Megola, concludes, "Megola has been quietly building a foundation for growth and success. While we never expected it to happen overnight, the pace has quickened dramatically with the acquisition of the Hartindo line of products. Management has done its best to stay the course and to move along methodically in order to prepare these highly regarded products for market, knowing that all legislative requirements have been met and exceeded. Management has also begun to take measures to ensure that we will be able to accommodate the anticipated demand volume. I would personally like to thank all shareholders for their continued patience and positive outlook and look forward to leading this company to its most exciting and prosperous year in 2008."

Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities.

The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.

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