CORUNNA, Ontario, Dec. 15, 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 (LOI) to acquire the intellectual property rights to an extensive line of ultraviolet (UV) air and water disinfection units to compliment its existing air and water treatment products. The all-stock transaction should be completed within the next 90 days.
"Megola has dedicated the lion's share of its time and resources over the last year to activities that should help the company grow and build shareholder equity much more rapidly than otherwise possible. Although this long-term focus has limited our short-term marketing efforts to a degree, we know that by putting in the time and effort to establish valuable relationships with strategic partners around the world, Megola should be able to grow rapidly and reap the resulting rewards for many years to come. This planned acquisition is a perfect example of a move that we expect to pay huge dividends as we position Megola as a major player in the growing multi-billion dollar air and water treatment industry," says Joel Gardner, Chief Executive Officer of Megola, Inc.
The LOI provides Megola with the irrevocable option to purchase the exclusive rights to the entire line of UV air and water disinfection products from UV Innovation Inc. for a pre-negotiated amount of restricted common stock. The UV air disinfection units are available in three different models for residential and commercial applications, while the UV water disinfection units include four different models for various flow rates encountered in residential, commercial and industrial settings. The LOI states that Megola shall have 90 days to test, use and sell the products as well as complete its due diligence before finalizing a definitive agreement for the acquisition. It also provides Megola with a 12-month option to buy back its stock at a pre-set price.
"We believe this acquisition will benefit Megola and its shareholders immediately. With respect to their air disinfection products, UV Innovation has produced a very well-engineered and innovative product line for the residential and commercial market. In the past six weeks, two key distributors, Westheat and Excell Clean Air - both of which have an extremely wide reach - have begun offering these products in North America. Excell (http://excellcleanair.com/) holds the Master License across Canada for SEARS (TSE:SCC) Authorized Indoor Clean Air Services and sells the units through an exclusive branding agreement under the "Germinator" brand name. By combining UV Innovation's product offerings with our own complimentary products, Megola should become a premier player in the air purification market," adds Gardner.
The company's new and existing air treatment products are installed within furnace ducts to help eliminate airborne bacteria, viruses, smoke, mold, mildew, odors, dust mites, pet dander and other indoor air pollutants that can cause "sick homes" and "sick building syndrome". These environmental contaminants can accumulate in air ducts and lead to a host of health problems, including allergy, asthma, migraines, colds and the flu.
Since going public late last year, Megola (www.megola.com) has been attracting ever increasing amounts of interest from a variety of industries. The company is in the process of greatly expanding both the scope of its offerings and its reach throughout the global marketplace. Through the continuance of the new business model that was previously launched this year, Megola believes it can 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.