New Regulations Banning Salt Water Softeners Likely to Drive Increasing Sales of Megola's ScaleGuard Units

CORUNNA, Ontario--()--Sept. 2, 2004--Megola, Inc. (OTCBB: MGOA), a leading solution provider in wastewater treatment and air purification, announced today that the rapidly growing list of cities and counties have enacted bans on softeners that produce brine waste discharge is driving what the company expects to be an ever-increasing demand for its ScaleGuard technology.

According to an article in the July 2004 edition of the water treatment industry publication, Water Technology (http://www.watertechonline.com/article.asp?indexid=6634621), retailers and distributors of water softeners in a number of states are being hit hard by recently enacted laws banning water softeners that produce brine waste (salt softeners). Due to environmental problems associated with salt softeners, communities in California, Texas and several other states are searching for ways to reduce brine discharges into public wastewater systems and curb the negative impact it produces on groundwater and the ecosystem.

Such bans have produced a windfall for Megola. As more areas ban salt softeners, we are being flooded with calls from distributors and dealers that want to start selling our ScaleGuard systems in their areas. We could not be more pleased to see this happen as it has already led to partnerships with several distributors and retailers this year," says Joel Gardner, President and Chief Executive Officer of Megola, Inc.

"Hard water is a serious problem that affects about 85% of North America. The presence of hard water causes problems for residential as well as commercial, agricultural and industrial users. As more and more communities look to ban softeners that adversely affect the groundwater in their areas, Megola and its environmentally-friendly ScaleGuard technology stands to gain an increasing amount of attention and a lot of new customers. This will be good for both our shareholders and the environment in North America," adds Gardner.

Megola's ScaleGuard technology cost effectively conditions hard water and eliminates the historical build-up of scale caused by hard water in residential, commercial and industrial applications. Unlike salt softeners, Megola's technology is widely recognized as one of the best alternatives to traditional water softening methods. ScaleGuard units use a revolutionary electromagnetic technology to soften water, both preventing the ongoing build-up of scale and eliminating historical scale build-up in water delivery systems and machinery.

Megola (www.megolacorp.com), which went public last year, is in the process of greatly expanding its reach throughout the global marketplace. It's new business model which it recently launched could significantly boost its revenues. Under this new model, the company has begun partnering with clients to provide "tailor-made" solutions to the clients' 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.

Contacts

Phoenix IR Associates, Inc.
1-866-281-3258
ir@megolacorp.com

Contacts

Phoenix IR Associates, Inc.
1-866-281-3258
ir@megolacorp.com