CORUNNA, Ontario, March 9, 2005 (PRIMEZONE) -- In a release sent earlier today, please note that GmbH was mistakenly identified as the parent company of Megola in the headline. The full corrected release follows:
Megola Inc. (OTCBB:MGOA), a leading solution provider in physical water treatment, microbiological control, wastewater treatment and air purification, announced that it has made payments toward acquiring a majority interest in Megola GmbH, Germany, the manufacturer/owner of the ScaleGuard technology. GmbH is not the parent company of Megola Inc. as previously stated. However, both companies will now work together under Megola Inc's new business model.
"In accordance with our business plan set forth last year and the letter of intent signed on November 23, 2004, this was the next step in the company's progression. By now owning the intellectual and software properties covering the ScaleGuard products, as well as the patent rights to the new CDI technology that is under development at Megola GmbH, we stand to realize a tremendous boost in both stature and revenue through this acquisition," 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. Megola GmbH will continue to act as the research and development arm of Megola Inc., developing new technologies and products for the world market.
"Megola expects this acquisition to be finalized later this quarter, but has already switched the assembly of the ScaleGuard systems to China along with a few of our other recently acquired products in order to increase gross profit margins. Dalian Bingshan H2O3 Environmental Solutions Ltd Co., Megola's Asian distributor, has already begun production on a recent inventory order. This allows us to have better control of our products with respect to both quality and pricing, which enables us to be more competitive in the water and air treatment markets," continues Gardner.
Megola Inc.(www.megola.com), is in the process of completing their corporate structure while 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 launched last year, which the company believes will 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.