SOURCE: Megola Inc.

September 05, 2007 16:00 ET

Megola Inc. and MSE Enviro-Tech Sign Joint LOI With WoodSmart Solutions, Inc.

Companies to Pursue Testing of AF21 in Conjunction With BluWood® Product

CORUNNA, ON--(Marketwire - September 5, 2007) - Megola Inc. (PINKSHEETS: MGOA), in collaboration with MSE Enviro-Tech Corp., is pleased to announce that it has signed a Letter Of Intent (LOI) with WoodSmart Solutions, Inc. to test the feasibility of incorporating its Hartindo fire inhibiting AF21 product into WoodSmart's well-known BluWood® lumber and other wood building products.

"We look forward to working with Megola and MSE Enviro-Tech in bringing the combined proprietary technologies to the wood industry. The combination will establish a new benchmark for environmentally responsible performance in protecting wood from the costly effects of excessive moisture, mold fungus growth, rot fungi decay, wood ingesting insects and fire," states Charles A. Morando, President/CEO of WoodSmart Solutions, Inc.

About WoodSmart Solutions, Inc. and BluWood® (http://www.bluwood.com)

In 2000, an idea was formed to apply innovative wood coating technology to a fast growing concern in the construction industry. Existing chemical treatments used in the building industry were under close scrutiny, and eventually replaced with a newer generation of wood preservatives that still did not address a problem many view as the number one concern in the construction of new residences... mold and moisture control associated with wood framing components.

BluWood® is the trademarked name of a family of products coated with a proprietary two-part Infusion Film and DOT Wood Preservative technology, developed by a team of highly respected scientists under the direction of WoodSmart Solutions, Inc., headquartered in Boca Raton, Florida.

BluWood® wood framing components provide the building industry with a new level of defense for protection of above ground, covered structure wood framing components against the costly, damaging effects of mold fungus growth; rot fungi and wood ingesting insects; as well as limiting moisture absorption, a key necessary element for mold growth.

This industry-specific, factory-applied coating process is performed by a North American network of WoodSmart Solutions, Inc. licensed application companies.

LOI Highlights:

WoodSmart Solutions, Inc. is interested in:

--  Exclusive use of the Hartindo Fire Inhibiting AF21 product ("AF21")
    including all improvements and modifications thereto use, apply and have
    sold for application to or protection of any wood based product(s)
    utilizing AF21 individually and/or in conjunction with BluWood® product
    to any wood based building product(s) or derivative product including but
    not limited to dimensional lumber, plywood, OSB (oriented strand board),
    EWP (engineered wood components), all millwork applications such as doors,
    windows, moldings and other related products in North America and to
    automatically include any additional territory for which Megola Inc. and/or
    MSE Enviro-Tech Corporation obtain rights for the AF21 product.
    

Megola Inc. and MSE Enviro-Tech Corp. are interested in:

--  Supplying WoodSmart Solutions, Inc. with the AF21 fire inhibitor
    product on an exclusive basis for the Territory as described above with
    minimum guaranteed monthly and annual purchase commitments, beginning at
    such time as the appropriate testing standards required for AF21 have been
    met and application testing for the BluWood® and AF21 products when
    individually or jointly applied to the same wood products has been
    successfully completed.
    

The Parties agree:

--  That to aid in ongoing analysis of continuing to invest time and money
    to obtain certain AF21 certifications, and to continue to invest in testing
    the applications of both products to various wood products, it would be
    beneficial to the Parties, and important to any long-term agreement, to
    agree on the proposed purchase quantities and pricing of AF21 following
    successful testing prior to the conclusion of said testing.
--  To come to an agreement on pricing and volume commitments amenable to
    the Parties and to provide the Purchaser with exclusive use of AF21 for use
    on wood products as described above.
    

"Megola is committed to proving the capability of AF21 for application in the building sector. We are very pleased with the test results we have already seen and are confident that AF21 in conjunction with the BluWood® product will establish a viable product mixture to effectively treat all wood based building products and encourage WoodSmart to enter into a definitive purchase agreement," says Joel Gardner, Megola CEO.

Hartindo AF21 Testing

A recent test was conducted in accordance with ASTM E-84-07, Standard Test Method for Surface Burning Characteristics of Building Materials, at SGS U.S. Testing Co. in Fairfield, New Jersey. The AF21-treated sample specimen received a Flame Spread rating of 20 and a Smoke Developed value of 50, which meets the parameters for the Class A Interior Wall and Ceiling Finish Category.

For further details on AF21 Testing see press release dated August 29, 2007 --

Megola Announces AF21 Test Results (http://biz.yahoo.com/iw/070829/0296174.html).

For more information on Hartindo products and Megola Inc. please visit www.megola.com.

For more information on MSE Enviro-Tech please visit www.mseenviro-tech.com

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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