CORUNNA, Ontario, Nov. 23, 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 signed a letter of intent to purchase a majority interest in Megola GmbH, Germany, the manufacturer/owner of the ScaleGuard and CDI technology.
"This has been one of our main goals for several years now -- to own the rights to the products that we have been introducing to industrial, commercial, residential and agricultural customers across the globe. By purchasing a controlling interest in Megola GmbH, we will continue to establish our presence in the forefront of the water and air treatment industry for years to come," says Joel Gardner, CEO of Megola, Inc.
Under the terms of the agreement, Megola Inc. will own 70% of Megola GmbH, with the remaining 30% held by the founders of the German company, which was initially founded for the purposes of R&D and the manufacturing of physical water treatment devices. Megola GmbH will continue to act as the research and development arm of Megola, Inc., developing new technology and products for the world market.
"Since Megola Inc.'s inception, we have focused our distribution networks on North America and, more recently, Asia. Through this acquisition, we will now be able to prove our capabilities to the large European market," states Dennis Davies, Distribution Manager.
"Megola, Inc. has been very successful in bringing Megola GmbH's innovative product line to the rapidly growing worldwide market, especially since going public earlier last year. We believe that by owning the intellectual and software properties to the ScaleGuard products, as well as the patent rights to the new capacitive de-ionization (CDI) technology that Megola GmbH is developing, we stand to realize a tremendous boost in both stature and revenue," adds Gardner.
Megola GmbH's newest patent (patent # 6,485,624) relates to the company's CDI technology for the demineralization of drinking water, as well as a vast number of applications associated with wastewater treatment. CDI requires no chemicals, ion-exchange resins, filtration or reverse osmosis in the treatment of water to meet all environmental and health standards with respect to inorganic contaminants. The CDI technology has already been through a rigorous feasibility study by the Bavarian Ministry of Technology, Traffic and Commerce.
"With this acquisition, Megola GmbH can focus on the development of the CDI product line. The CDI technology is the future of water treatment with regard to drinking water availability and wastewater treatment in historically problematic areas," continues Gardner.
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. This is a continuance of the new business model that was previously launched this year, which the company 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.