SOURCE: Megola Inc.

February 16, 2007 16:00 ET

Megola Introduces AF21, a Total Fire Inhibitor

Prevents the Spread of Fire by Rendering Materials Non-Flammable

CORUNNA, ON -- (MARKET WIRE) -- February 16, 2007 -- Megola Inc. (PINKSHEETS: MGOA), a leading environmental solution provider, is pleased to introduce one of its newly acquired "Anti-Fire" products, AF21, a water-based, non-toxic, non-corrosive, fire inhibitor. AF21 does not merely delay the spread of fire; it prevents fires from starting.

Non-Flammable

Unlike many current fire retardants that only resist fire for a short period of time, AF21-treated material will not burn. Flames from untreated material will not be able to spread when they encounter AF21-treated material, which causes a fire to be limited to the size of the initial fuel source.

This has been proven through extensive flammability testing conducted in the UK, Singapore and Malaysia to meet and exceed various British Standard (BS) requirements. The impressive results are exemplified by tests on AF21-treated cotton and natural fiber blends, which achieved the highest possible rating, Class 0 and Class 1 for BS 476, Part 6 and 7, respectively, which are rigorous tests typically used to evaluate the flammability of building materials. Other third-party tests have evaluated the flammability and ignitability of various upholstery, drapery and carpet materials, all with similarly impressive results. AF21 has also passed Civil Aviation Authority (CAA) and Federal Aviation Authority (FAA) standards for use on airplane cabin fabrics.

Non-Toxic

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 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.

Applications

The potential applications for AF21 are innumerable. It can be used to treat any water-absorbent, natural material, such as cotton, linen, wool and wood, and many synthetic materials, such as polyester and some polypropylene and polystyrene products. Methods of application include spraying, dipping or padding, which can be performed onsite or during the manufacturing process. There is no change in the look, feel or smell of the treated materials and, once dried, the materials can be washed in soap and water without losing the fire-inhibiting characteristics of AF21.

There are some notable applications where AF21 could make an immediate and considerable impact. The new U.S. federal standard for the flammability of mattresses goes into effect on July 1, 2007. Currently, many of the approved fire retardants contain boric acid, antimony or PBDEs and have been shown to have negative environmental and health effects. AF21, being non-toxic and non-irritating, is a potential solution for the problems surrounding this hotly debated topic. To this end, Megola will be submitting product samples to Underwriters' Laboratories to show how AF21 could be used to meet this new standard.

Another application where AF21 could see significant use is in uniforms and protective clothing. Whereas some engineered materials only resist fire for several seconds, AF21-treated material will never catch fire. Instead, a protective char is formed that prevents combustion and also protects the non-exposed side of the material from the heat source, up to 3000°C (over 5400°F). Thus, there is great potential in the production of lightweight, breathable, fire resistant clothing and personal protective equipment.

There is a long list of current users of AF21 throughout Europe and Asia. These include the British Army, British Airways, Imax Cinemas, Hyatt Hotels and the Royal Malaysian Army and Navy, to name a few. One very notable application was during the 2004 Summer Olympics in Athens, where AF21 was used to treat the massive fabric roof structure of the dining tents in order to comply with fire codes.

Market

A report by the Freedonia Group states that "the US demand for flame retardants will rise 3.6 percent per year to 1.1 billion pounds in 2008, valued at $1.3 billion. In value terms, growth will increase a robust 5.9 percent annually as higher value specialty flame retardants increase their share of the market."

For more information about AF21 and about Megola Inc. please visit www.megola.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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