CORUNNA, Ontario, May 18, 2004 (PRIMEZONE) -- Megola, Inc. (OTCBB:MGOA), a leading solution provider in physical water treatment, microbiological control, waste-water treatment and air purification, announced today that it has signed a non-exclusive distribution agreement with Dalian Bingshan H2O3 Environmental Solutions Co., Ltd., a member of the Bingshan Group, to distribute Megola's ScaleGuard product line throughout Asia. The agreement also calls for H2O3's ozone machines to be distributed by Megola in conjunction with its ScaleGuard products in North America.
"This new partnership should prove to be extremely significant for Megola. Dalian Bingshan H2O3, http://www.ultrapur.com.cn/, is one of the most well-connected and respected companies in its industry in the exploding Chinese and Southeast Asian markets. We are very excited to have such a powerhouse partner in China. We expect to realize a significant boost in revenues through our alliance with Dalian Bingshan H2O3," says Joel Gardner, Chief Executive Officer of Megola, Inc.
China's rapidly growing population, which has surpassed 1.2 billion people, is fueling a booming industrial economy. China's economy grew at its fastest pace ever for the past six years ending in 2003, adding 9.1% to its gross domestic product. During the past three years China has accounted for one-third of global economic growth (measured at purchasing-power parity), which is twice the contribution of America. The country's performance makes it the fastest growing major economy in the world. Industrial production jumped 17% in 2003 and is expected to show impressive numbers again in 2004.
"We consider Dalian Bingshan H2O3 to be the perfect company to partner with in order to tap the exploding Asian industrial marketplace. They have the backing of one of the most powerful industrial conglomerates in China and can draw upon those resources to quickly develop the Chinese and other Asian markets for Megola's products. We expect this to be a very fruitful relationship," adds Gardner.
According to Song Jia Jing, Bingshan Group's marketing manager, "Bingshan believes that the environmentally friendly water treatment system will be a key area of growth in the future. As such we have decided to distribute Megola's Scale Guard water treatment devices. We are offering these devices as an option to our BAC evaporative condenser customers."
Bingshan Group consists of 46 different companies, two of which are publicly listed, 13 more are state-run companies and 31 are Sino-foreign joint venture companies. Bingshan Group has been the leading refrigeration company in China for years. It is listed as one of the 100 strongest companies in China's mechanical industry and is considered to be among China's top 500 outstanding state-run enterprises. Bingshan Group is the majority shareholder of Dalian Bingshan Baltimore Aircoil Co., Ltd. (BAC). Dalian Refrigeration, a division of the Bingshan Group, is the largest reseller of BAC products in China. Over the last 6 years their annual sales accounts for approximately 70% of all BAC evaporative condensers produced in China.
Megola, which went public late last year, is in the process of greatly expanding both the scope of its offerings and its reach in the global marketplace. The company announced earlier this month that it has launched a new business model, which it believes could significantly boost its revenues. Under this new model, the company will partner with its clients to provide "tailor-made" solutions to their air/water-quality problems and then share in the cost savings generated through theses partnerships.
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.