Megola partners with J&D for better water use for dairy farms

Pair debut their Total Solution Program at World Dairy Expo; system expected to increase revenues by $30 million over three years...

CORUNNA, ON, Canada, Sept. 28, 2004 (BUSINESS WIRE) -- Megola Inc. will launch the Total Solution at this year's World Dairy Expo Sept. 28-Oct. 2 in Madison, Wis.

Developed jointly with J&D Manufacturing Inc., the Total Solution is a program for improving water quality and productivity at dairy farms. As many as 65,000 people -- primarily dairy farm owners and producers -- are expected to attend this year's World Dairy Expo.

"This show will provide Megola (and its partner, J&D Manufacturing, Inc.) with the opportunity to introduce its revolutionary new system for improving water quality, optimizing milk production, and increasing revenues and profits for dairy farmers. This is by far one of the biggest advances in the dairy industry in decades. Because they will be able to recoup their investment in a matter of months and continue realizing increased profits from then on, the Total Solution system should be an easy sell to dairy farmers across North America," says Dennis Davies, distribution manager of Megola Inc.

Megola anticipates that the Total Solution program could generate up to $30 million in additional revenues for the company in just the next three years. If the system were to become widely implemented throughout the entire dairy industry, that amount could grow exponentially.

In conjunction with J&D Manufacturing, Megola will begin a pilot-testing program later this year. In this pilot program, the companies will install the Total Solution on a number of dairy farms in California, where the problems associated with water quality are becoming a major concern.

It's confidently expected that these dairy operations will realize overall improved milk production levels from 5-10%. Although not the only anticipated benefit, this average increase in milk production alone is so significant that dairy farmers can expect a full return on their investment in the Total Solution in the first year.

The Total Solution program, which will be sold by J&D and its equipment dealer network, consists of three phases:
-- Phase I increases the palatability of drinking water (which encourages the cows to drink more water); improves the farm's evaporative cooling system (which keeps the cattle cool, comfortable and therefore more productive); and eliminates costly scale buildup in pipes and fixtures.
-- Phase II consists of disinfection improvements, which will keep the cattle healthier and lower the bacterial levels in the raw milk.
-- Phase III involves a bioremediation system that purifies wastewater in spoil lagoons, allowing that water to be reused for wash down of the farm's facilities ... resulting in less overall water usage, less wastewater to dispose of, and far less waste flowing back into the aquifer.

"The dairy farmers to whom we have already presented our program have been thrilled about the possibilities. Not only will the Total Solution increase their profits through higher output of milk, but it will also improve the health of their cattle, cut their water costs, reduce wastewater problems and help them meet stricter environmental regulations. Every dairy farmer knows that a comfortable and healthy herd will consistently produce more high quality milk. That means more money in the farmer's pocket, making Megola's Total Solution an easy choice," adds Davies.

"The Total Solution program presents a great opportunity to improve upon milk production levels and show a substantial return. If we get even close to the results we are anticipating, this will revolutionize the dairy system ... especially in those places where poor water quality is a problem," says Scott Trippler, J&D Manufacturing vice president.

J&D Manufacturing (www.jdmfg.com), based in Eau Claire, Wis., is a leading supplier of Cow Comfort Systems, which consists of bedding, flooring and stall mat systems that maximize diary production. The company also designs and manufactures ventilation, circulation fan, and cooling systems for a variety of locations and applications. J&D's main ventilation concentration is with small to large scale single room environments such as free stall barns, greenhouses, livestock, poultry, and hog enclosures, and many industrial or commercial buildings. Utilizing and expanding upon natural air flow dynamics, the company's products and systems allow users to create and automatically maintain the best environmental settings for any purpose. The company has a network of 1,500 equipment dealers throughout North America.

Megola (www.megolacorp.com), which went public last year, is in the process of greatly expanding both the scope of its offerings and its reach throughout the global marketplace. The company announced earlier this year that it has launched a new business model, which it believes 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 these partnerships. The company also entered into an agreement to cross-promote its products with Chinese market leader, Dalian Bingshan H2O3 in Asia. This is already leading to significantly increased revenues in new overseas markets.

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