SOURCE: Megola Inc.

February 06, 2007 16:09 ET

Megola Introduces AF11E, a 1:1 Replacement for Halon

CORUNNA, ON -- (MARKET WIRE) -- February 6, 2007 -- Megola Inc. (PINKSHEETS: MGOA), a leading environmental solution provider, is pleased to introduce one of its newly acquired "Anti-Fire" products, AF11E, a 1:1 drop-in replacement for Halon 1301 in total flooding systems and an effective alternative to Halon 1211 in portable applications. This is the first of a series of press releases intended to educate Megola's future dealers, customers, end users and investors on the Anti-Fire products.

The History of Halon

Halon 1301 (BTM or bromotrifluoromethane) was first used as a fire suppression agent in the 1960s and was especially valuable as a clean agent in total flooding systems around sensitive and valuable equipment, such as mainframe computers, telecommunications and aircraft. Soon after, Halon 1211 (BCF or bromochlorodifluoromethane) was introduced as an effective gaseous fire suppression agent in portable fire extinguishers. It too was invaluable as a clean agent around similar equipment.

Research into the effects of CFCs and similar compounds, including halons, on the ozone layer eventually led to the Montreal Protocol on Substances that Deplete the Ozone Layer, an international treaty signed in 1987 and amended throughout the 1990s to protect the ozone layer by phasing out the use and production of many substances responsible for its depletion. Production of Halon 1301 and 1211 was banned in 1994 as a result of this agreement, but the use of recycled or existing halon still occurs, especially in critical use applications.

The Alternatives

There has been a race to develop and produce suitable substitutes in response to the ban and phase-out of halons. Subsequently, there are several alternatives to Halon 1301 and 1211 currently on the market. Some of these, like AF11E, belong to a group known as halocarbons, which are much less reactive and destructive in the atmosphere compared to halons, but suppress fire in a similar manner. Other current alternatives are based on non-reactive inert gases. However, none of the current alternatives can be considered a direct 1:1 replacement for Halon 1301 in total flooding systems. Instead, these alternatives require that a higher quantity or concentration of the agent be used compared to Halon 1301, which means that the systems used to deploy Halon 1301 need to be modified or replaced, often at a substantial cost to the end user. In fact, there has been relatively low market penetration of these alternatives due to cost, space and weight considerations when compared to Halon 1301.

The Market

The market for halon alternatives is extremely vast. The major market segment for halon fire extinguishing agents has been the protection of essential electronics, which is necessary in countless industries. Halons have also been employed extensively within civil aviation, the military, oil and gas processing and merchant shipping, to name a few. However, many of these segments have not seen a widespread switch to halon alternatives, simply due to the cost and other compromises associated with their implementation and use.

Megola's Answer

AF11E is a 1:1 drop-in replacement for Halon 1301, as tested by the Loss Prevention Council (LPC) in the UK. This means that it can use the delivery systems that were designed for Halon 1301 without any modification or retrofitting of existing systems, as only the gas needs to be changed. AF11E uses the same working pressures and volumes as Halon 1301, making it effective as a total flooding agent at a 5% design concentration with a 10 second discharge time (LPC UK). No other alternative agent meets these criteria.

AF11E can also be used as a streaming agent in portable fire extinguishers to replace Halon 1211 in the suppression of class A, B and C fires. Like Halon 1211, AF11E is a clean agent, but because of its higher boiling point and lower vapor pressure, it can actually be propelled farther than Halon 1211, a definite advantage when using a portable fire extinguisher.

AF11E uses HCFC-123, a commonly used refrigerant, as a carrier for its proprietary blend of fire fighting ingredients. HCFC-123 is listed as a Class II substance by the Environmental Protection Agency (EPA) due to its non-zero ozone depletion potential (ODP). However, the ODP of HCFC-123 is a relatively negligible 0.016 (the lowest among commonly used HCFCs), compared to an ODP of 10 for Halon 1301 and an ODP of 3 for Halon 1211. Due to the relatively minor environmental impact of HCFC-123, phase-out under the Montreal Protocol is not scheduled to occur until the year 2030. Also, when compared to the other halocarbon alternatives that are based on the non-ozone-depleting HFCs, such as FM-200, FE-36 and FE-13, AF11E has a much lower global warming potential (GWP) and atmospheric lifetime (ALT). Therefore, Megola believes that AF11E has the lowest overall environmental impact of all the halocarbon alternatives to Halon 1301 and 1211.

Megola is currently pursuing recognition by the Environmental Protection Agency (EPA) to be included on its Suitable New Alternatives Policy (SNAP) list of approved halon substitutes. There are already other HCFC-based agents on this list and although none of these can be considered a 1:1 replacement for Halon 1301, this shows that the EPA has recognized fire suppression agents with similar constituents as AF11E. Therefore, Megola does not anticipate any significant delays in the approval process. Once approved, AF11E will be the only 1:1 drop-in replacement for Halon 1301 on the EPA's SNAP list of approved halon substitutes.

For more information about the Anti-Fire products and about Megola Inc. please visit www.megola.com

For more information on the replacement of halon fire extinguishing agents within North America, go to http://rtwickham.home.comcast.net/images/wickham-halon-status.pdf.

For more information on the EPA's SNAP Program, go to www.epa.gov/ozone/snap/index.html

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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