CORUNNA, Ontario , Oct. 14, 2004 (PRIMEZONE) -- Megola, Inc. (OTCBB:MGOA), a leading solution provider in physical water treatment, microbiological control, wastewater treatment and air purification, announced that it has made progress in the introduction of its ScaleGuard technology to large industrial users in Canada, recently completing three separate large industrial installations.
After successful testing periods with three different industrial clients in the "Chemical Valley" area of Corunna, Ontario, Megola ScaleGuard systems were purchased by each company. This technology is designed to eliminate the problems industrial water users encounter when heating and recycling water. Calcium carbonate (scale) build-up in heat exchangers, sample pots, compressors, hot water tanks, cooling towers, piping, fittings and machinery inhibits water flow, decreases heat transfer capability, shortens the life span of the affected equipment and drives up maintenance and energy costs. ScaleGuard systems prevent and remove scale build-up and also eliminate the need for harsh, corrosive chemicals to treat the water, which reduces costs and allows companies to become more environmentally friendly.
"We are starting to experience an upward trend in sales of large water treatment systems to industrial users and expect this market to become a major revenue source for Megola. There is a very large, untapped market for our ScaleGuard technology in the chemical/petrochemical industry. There are thousands of plants in North America alone, many of which also suffer from hard water related problems, and we anticipate a steadily increasing market for our technology as environmental solutions and cost-saving measures become more and more prevalent," says Don Greer, Chief Operating Officer of Megola, Inc.
The first installation was at the Chinook Chemical Group's (http://www.chinookglobal.com/) manufacturing plant in Sombra, Ontario. A ScaleGuard SG 400 system was installed on the main recirculation line of the plant's cooling water system, where more than 300,000 gallons of water is treated daily. The installation has already resulted in decreased chemical costs and is expected to dramatically reduce costs associated with scheduled maintenance shutdowns.
The second installation took place at a major petrochemical plant, whose name is being withheld by request. A successful trial installation was completed on the cooling water line of an ASTM press in the plant's quality control laboratory. This resulted in the installation of a ScaleGuard system to treat the cooling water serving the entire laboratory. The installation has eliminated the regular use of acid solutions to remove scale deposits affecting the equipment.
A third installation took place at a modified polymers plant (name withheld) in Corunna, Ontario. A trial was conducted using a ScaleGuard SG 400 system to treat the cooling water serving the entire plant. After the trial was successful in keeping the cooling water distribution system and associated equipment scale free for a period of 16 weeks, the company decided to purchase the SG 400 system.
"The success of projects like these is helping Megola firmly establish itself as a leading provider of environmentally friendly solutions for some of the water treatment problems facing a variety of industries. This hard-earned reputation is making it easier to get our foot in the door with companies around the world and presents Megola and its shareholders with a very bright outlook for the future in the industrial water treatment marketplace," adds Joel Gardner, Chief Executive Officer of Megola, Inc.
Megola (www.megolacorp.com), which went public last year, is in the process of greatly expanding both the scope of its offerings and its reach throughout the global marketplace. The company announced earlier this year that it has launched a new business model, which it believes could significantly boost its revenues.
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.