Megola Announces Business Objectives

Megola Inc. (OTCBB: MGOA) released today a list of its primary business objectives for the remainder of its 2006 fiscal year and for the first quarter of its 2007 fiscal year.

A leading environmental solution provider in physical water treatment, microbiological control, wastewater treatment and air purification, Megola has been working on strengthening the foundation of its corporation by positioning itself to obtain product patents and intellectual properties while building synergies with other companies in the environmental market place. Megola is also creating relationships with distribution channels to best expose their products within all the industries they serve.

Some highlights of objectives to be reached in the upcoming 3-4 months include:

--  Megola will finalize a restructured deal by July 14, 2006, with the
    two Megola GmbH (Germany) shareholders who own one patent, one patent
    pending and the Intellectual Property of the ScaleGuard technology.
    Originally a letter of intent was signed to purchase a majority interest
    (70%) in the Megola GmbH Company. All previous funds advanced to Megola
    GmbH will be considered in the transaction, which will comprise of a minor
    cash payment (under 10,000 euro) and balance of restricted MGOA shares,
    which will be determined at the closing date. The patent is for the CDI
    (Capacitive Deionization) system (US 6 485 624 B1) and the patent pending
    is for a non-invasive pipe wrapping method for PWT (Physical Water
    Treatment) systems. The two inventors will continue to produce the
    ScaleGuard board components and will work as consultants for Megola on the
    patented technologies. Consulting agreements will be finalized for the
    start of fiscal year 2007.

--  In July, Megola will continue negotiations with a Strategic Management
    Advisory Firm that will assist Megola with compliance, filings, strategic
    developments, market & shareholder awareness, business advancements, LOI &
    other contracts, affiliations, partnerships & optimal capital structure
    alignments. Megola looks to have this deal in place for the start of fiscal
    year 2007. Compensation for this agreement will be cash or a cash and
    restricted stock combination. Value will be determined through the
    negotiation process, conditional upon Megola's immediate needs.

--  Also in July, Megola will be entertaining negotiations that will see
    them issue an LOI (Letter of Intent) to Sentinel Solutions, Inc.
    (www.sentinelsolutionsinc.com), to make a restricted stock purchase of the
    patent pending Homeland Security approved water monitoring unit, the Water
    Sentinel, and will arrange to have the inventor of the technology work on
    the project as a consultant to Megola, eventually becoming an employee in
    fiscal year 2007.

--  Megola will be announcing new management positions, board of directors
    and advisory board positions for the new fiscal 2007year, which begins
    August 1, 2006. Megola will schedule its first annual shareholders meeting
    at its office in Corunna, Ontario, within the first quarter of fiscal year
    2007.

--  Megola has recently sold a ScaleGuard unit to a prominent property
    management group in Ontario -- Steeves & Rozema Group of Companies
    (www.snr.on.ca) -- who purchased the unit for one of their nursing home
    properties. In July, Megola will install a second larger ScaleGuard unit
    into one of their commercial properties, an 18 story 163 unit apartment
    building. Megola will continue to work with this group as budgets for other
    buildings are arranged.

--  Megola has arranged to have UV Dynamics (www.uvdynamics.com) supply
    the ballasts for Megola's UV Water systems. Megola's
    manufacturer/distributor in China will build and package all other
    components. Megola had acquired IP Rights for the UV Water systems,
    however, Megola could not finalize the details of manufacturing a non-
    problematic ballast and therefore found a more reliable source as to not
    hinder potential immediate sales. Megola will generate further discussions
    with UV Dynamics to explore other potential synergies.

--  In July, Megola will install trial whole-house AquaGuardian water
    treatment centre systems into the residences of two individuals associated
    with The Linc Group (www.thelincgroup.com). These installations are a
    follow-up to an initial product approval process in which Megola's
    AirGuardian system was accepted. Megola will continue to work with the
    "Green Homes America" group as they are part of The Linc Group's network.

--  Megola, in August 2006 (start of new fiscal 2007 year), will announce
    an ongoing affiliation with Dalian Bingshan H2O3 Environmental Solutions
    Ltd as their Asian distributor for Megola products as well as the
    continuation of the manufacturing/assembly relationship for Megola's
    current products and future product developments.

--  A finalized arrangement with CUNO to market their filters has been put
    in place.  Over the next few months, Megola will be meeting to discuss
    other synergies between the two companies. Environmentally-friendly
    products, such as the ScaleGuard, IAQ units, and UV water technology, are
    something CUNO, and their parent company 3M, have expressed interest in as
    they look to compete with the likes of 'Ecomagination' product offerings
    from companies such as GE.

--  Megola has initiated talks with a handful of very profitable water
    treatment companies to discuss potential mergers.  The companies in
    question are based in a variety of locations, from Nevada to Arizona to
    Ontario. The company's growth by potential acquisition strategies seeks to
    consolidate synergistic and revenue enhancing companies into Megola and to
    continuously introduce new environmentally-friendly technologies and
    products into the marketplace. Megola will continue with negotiations and
    will look at a potential merger/acquisition for the first quarter of the
    fiscal 2007 year.

--  Megola will continue with sales to its current distributors with its
    existing developed line of products.
    

"It has been a very busy last two quarters at Megola as we have been preparing ourselves for a strong push into becoming a larger player in environmental treatment markets. By initiating the acquisition of patented technologies and IP Rights, we not only secure our production environments but also become better poised to attract secured funding necessary to move forward with large-scale projects," states Joel Gardner, CEO of Megola Inc. "Our revenues have held steady while we lowered our deficits and spent countless hours formulating our short-term objectives. While we don't believe our share price is indicative of our present or future value as a company, we definitely feel those who have stayed with Megola for the long term are going to be happy with the direction we are taking," adds Gardner.

For more information about Megola Inc., please visit the corporate website (http://www.megola.com).

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.