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OriginOil to Embed Its Technology into Industrial Algae Systems

Long-term goals will be in licensing while strategic partners help prove and scale technology

Los Angeles, CA January 20, 2011 – OriginOil, Inc. (OOIL), the developer of a breakthrough technology to transform algae, the most promising source of renewable oil, into a true competitor to petroleum, today announced it will focus on embedding its technology into industrial algae systems. The Company will continue to rely on a few strategic partners to help prove and scale the company’s extraction technology.

“Now that we’ve sharpened our technology focus, it’s time to do the same for our business model,” said Riggs Eckelberry, OriginOil CEO. “We now plan to embed our technology into the industrial algae systems that others build. We no longer plan to develop our own distribution channels, nor engage in any high-volume manufacturing.”

Strategic partners like Australia’s MBD Energy will help the Company scale up its technology, proving its value in the field. These commercial scale-up programs will avoid the large capital expense of pilot plants for OriginOil while technology agreements protect its intellectual property.

OriginOil will work with OEMs (Original Equipment Manufacturers) to integrate its extraction technology into their branded systems. The OEM category encompasses manufacturers, distributors, engineering service firms, system integrators and also specialty operators in high-value markets such as nutritionals and beauty products. Certain OEMs will be selected as manufacturers of OriginOil’s proprietary hardware.

On January 12, the company announced that future technology development efforts would concentrate on the ‘midstream’ of algae harvesting and extraction, a key industry challenge addressed by OriginOil’s patent-pending processes.

“Algae is turning into a global industry that could someday replace petroleum,” Eckelberry continued. “Focus is essential – in business as in technology – and you never want to compete with your natural partners.”

“We aim to be the first to market,” commented Scott Fraser, OriginOil’s Vice President of Operations. “Well-funded manufacturing and engineering services firms are gearing up to build out these massive systems.

“Many already have well-developed sales and distribution networks. By integrating with them, we avoid having to build our own manufacturing and distribution infrastructure. That gets us into markets quickly, which is the key.”

As its first potential OEM relationship, OriginOil has an early-stage partnership with Belgium’s Desmet Ballestra, a global leader in oil seed extraction and a pioneer in the implementation and sale of full-scale algae extraction systems, with operations in Egypt, Nigeria, Sudan, Argentina, Brazil, Columbia, Mexico, the United States, China, India, Malaysia, Singapore, South Korea, Taiwan, the United Arab Emirates, Belgium, Bulgaria, Romania, Russia, Spain, Turkey, and the United Kingdom.

Safe Harbor Statement:

Matters discussed in this update contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this update, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

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