SOURCE: Megola Inc.

Megola Inc.

August 17, 2010 14:30 ET

Megola Responds to Shareholder Inquiries Regarding Short Selling

POINT EDWARD, ON--(Marketwire - August 17, 2010) -  Megola Inc. (OTCBB: MGON), a leading environmental solution provider, has provided information to shareholders regarding short selling of the Company's common stock.

Recent trade activity of Megola's stock since June 1, 2010 (after conversion dates of Megola's preferred series A and B shares), shows that of the approximately 450,000 shares traded over 63%, or approximately 287,000, have been Short Sales.

"Short selling is, unfortunately, an investment strategy for some investors that can have a negative impact on long term holders in the short term. As a company all we can do is to continue to build growth, sales and profitability in hopes that it may deter some short sellers from targeting our particular stock," states Joel Gardner, Megola CEO. "We have a large insider position holding, a relatively low market float and we feel we are in a good position to overcome such minor obstacles as management continues to strive to increase shareholder value," continued Gardner.

Definitions provided from www.finra.org/glossary:

Short Sale
The sale of shares of a security that the seller does not own. Such sales are made in anticipation of a decline in the price of the security to enable the seller to cover the sale with a purchase at a later date, at a lower price, and thus at a profit. Securities and Exchange Commission rules allow investors to sell short only when a stock price is moving upward. This prevents "pool operators" from driving down a stock price through heavy short-selling, then buying the shares for a large profit.

Short Sale Rule
A Nasdaq rule that prohibits FINRA members from selling a Nasdaq National Market stock at or below the inside best bid when that price is lower than the previous inside best bid in that stock.

Short Interest
The total number of shares of a security that have been sold short by customers and securities firms that have not been repurchased to settle short positions in the market.

To view short selling of a particular company please visit http://regsho.finra.org/FORFshvol20100816.txt and change the date in the link to correspond with the date to be reviewed. From the list scroll to see if Megola's symbol MGON is on the list and if so it will show any short selling was done on that particular day.

For more information about Megola Inc. please visit www.megola.com

To view Megola's YouTube Channel please visit http://www.youtube.com/user/MEGOLAinc.

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.

Contact Information