SOURCE: Megola Inc.

Megola Inc.

August 24, 2010 16:00 ET

Megola's Hartindo™ AF21 Demonstrates Positive Results as Fire Inhibitor in Polyurethane Foam Insulation

Hartindo™ AF21 Prevents the Spread of Fire by Rendering Materials Non-Flammable

POINT EDWARD, ON--(Marketwire - August 24, 2010) -  Megola Inc. (OTCBB: MGON), a leading environmental solution provider, updates the developments of its "Anti-Fire" product, Hartindo™ AF21, a non-toxic, environmentally-friendly fire inhibitor. Hartindo™ AF21 has been blended into the manufacturing process of polyurethane foam insulation and was found to have positive effects in inhibiting flame spread and smoke.

"This is yet another vertical market that we have been investigating for some time with the Hartindo AF21 fire inhibitor. We will continue to seek industry specialists and work with them to enhance the fire resistance capabilities of their products in hopes of setting new fire standards that will ultimately save lives and property," states Joel Gardner, CEO of Megola Inc.

Video Demonstration

http://www.youtube.com/watch?v=Anp5nroeuLI

Market

A report by the Freedonia Group states:

Construction markets were to increase to 2.7 billion pounds by 2009, accounting for 36 percent of all polyurethane use. Growth would result from heightened energy efficiency standards, needs for better performing and lower cost materials, and rebounding nonresidential building construction. Bedding is to provide the best growth prospects in the otherwise slowing household products segment based on inroads made by full foam mattresses. Transportation equipment markets were to be stimulated by needs for higher levels of comfort and safety in seating and other motor vehicle uses.

Rigid polyurethane foam demand was approximately 2.4 billion pounds in 2009, benefitting from its high thermal efficiency in building, tank and pipe insulation uses.

The National Fire Protection Association reports that in 2008 there were:

  • 1,451,500 fires were reported in the U.S.
  • 3,320 civilian fire deaths
  • 16,705 civilian fire injuries
  • $15.5 billion in property damage
  • 103 firefighter deaths
  • 515,000 structure fires
  • 236,000 vehicle fires

The 2008 United States Fire Loss Clock shows that:

  • A fire department responded to a fire every 22 seconds
  • One vehicle fire was reported every 34 seconds
  • One structure fire was reported every 61 seconds
  • One home structure fire was reported every 82 seconds
  • One civilian fire injury was reported every 31 minutes
  • One civilian fire death occurred every 2 hours and 38 minutes

The Center for the Polyurethanes Industry (CPI) supports a combination of approaches to reduce these tragic incidents, including:

  • addressing technically sound national standards
  • supporting the proper labeling of products
  • fire safety

Non-Flammable

Unlike many current fire retardants that only resist fire for a short period of time, Hartindo™ AF21-treated material will not burn. Megola is currently identifying numerous potential industries and applications for AF21 in polyurethane foam, including insulation, bedding, automotive and aerospace. In addition, Megola has received positive preliminary test results as a fire inhibitor in cellulose insulation manufactured from recycled materials. 

Environmentally Friendly

Hartindo™ AF21 is water-based and contains a mixture of inorganic salts and a proprietary blend of fire-inhibiting ingredients. The results of toxicity testing performed by a third-party laboratory in the U.S.A., using Environmental Protection Agency (EPA) approved test methods, showed that Hartindo™ AF21 is essentially non-toxic when ingested and non-irritating upon contact with eyes or skin. This is in stark contrast to many current fire retardants that are solvent-based, toxic and potentially irritating to eyes and skin. In fact, there is strong evidence that some of the common fire retardant chemicals used today can bioaccumulate in our bodies and can persist for many years in the environment. 

Video demonstrations of the effectiveness of Hartindo™ AF21 can be seen by visiting Megola's YouTube Channel at http://www.youtube.com/user/MEGOLAinc

As of July 26, 2010, the Common Share structure for Megola is as follows:

Authorized:   200,000,000
Outstanding:   33,399,980
Restricted:   7,144,087
Float:   26,255,893

For more info on Megola Inc., please visit www.megola.com

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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