Octillion to Focus on Solar Energy Technologies; Biotech Subsidiary to be Spun Out to Shareholders

Business Wire, August 3, 2007

MicroChannel Technologies, a Wholly Owned Subsidiary, Focused on Periphery and Optic Nerve Regeneration Technologies to Be Spun out to Octillion Shareholders of Record August 22, 2007; Octillion's Focus to Be on the Development of Solar Based Energy Technologies

VANCOUVER, British Columbia -- As part of new initiatives to focus Octillion's financial and managerial resources on the development of leading edge solar energy technologies, including the development of the first-of-its-kind transparent glass window capable of generating electricity, Octillion Corp. (Pink Sheets:OCTL) today announced the spin-out of its wholly owned subsidiary, MicroChannel Technologies Corporation, to shareholders of record on August 22, 2007.

"In order to concentrate our efforts in developing leading edge solar energy technologies, we've decided to spin out our MicroChannel subsidiary to shareholders," stated Mr. Harmel S. Rayat, Octillion's President and CEO. "This will allow each of the companies to utilize management and financial resources fully on the development of their lead and other synergistic technologies, and thereby ultimately, we believe further enhance shareholder value."

Mr. Rayat continues, "As fully functioning, stand-alone corporations owned by our shareholders, both Octillion and MicroChannel will benefit from dedicated management teams focused solely on their dedicated operations and technologies. I will continue to serve as a director and President and CEO of Octillion, and I'm happy to announce that Dr. Kaiyo Nedd, presently a director of Octillion, will be appointed President and CEO of MicroChannel, which will continue to work towards developing technologies and products for peripheral and optic nerve damage and nerve regeneration, as well as potentially other innovative healthcare and medical technologies."

Dr. Nedd is a regarded speaker for the pharmaceutical industry who lectures to physicians on current therapeutic issues, and conducts leading edge clinical therapeutics research in HIV, diabetes and hypertension. Along with being a practicing physician, Dr. Nedd is also a clinical teacher for foreign medical students. Dr. Nedd holds a Bachelor of Science degree (Cell Biology and Genetics) from the University of British Columbia and a Doctor of Medicine from Howard University in Washington, DC.

Concluding his comments regarding the spin-out, Mr. Rayat noted that, "The spin-out will be completed immediately upon compliance with, and satisfaction of, applicable securities and regulatory requirements."

MicroChannel Technologies Corporation

The research being performed by MicroChannel Technologies involves using a patented combination of physical, chemical and biological cues at the "cellular" level to facilitate peripheral nerve regeneration. This technology was co-invented by Dr. Surya Mallapragada, an Iowa State University scientist, named one of the world's top 100 young innovators in 2002 by Technology Review, a technology magazine published by the Massachusetts Institute of Technology.

This methodology involves etching linear micro sized grooves onto a biodegradable substrate into which preferred cues, such as Schwann cells, stem cells and laminin, are added. The combination of micropatterned substrates and cues resulted in accelerated nerve elongation rates, and excellent nerve alignment along the substrate grooves, in in vitro studies and restored nerve functionality in animal studies. This technology has also resulted in the issuance of a US Patent entitled "Patterned Substrates and Methods for Nerve Regeneration" (US Patent # 6,676,675).

Additional research and animal studies were published in a peer-reviewed research paper entitled "Synergistic Effects of Micropatterned Biodegradable Conduits and Schwann Cells on Sciatic Nerve Regeneration" in the Journal of Neural Engineering. In this study, a 1 cm segment of rats' sciatic nerves, which deliver nerve messages to the hind legs, were removed. After the initial surgery, the paws (toes) curled up completely and the animals were unable to walk.

The severed nerves were then surgically reconnected using micropatterned conduits pre-seeded with Schwann cells. Over time, as motor skills were regained, the animals' paw uncurled and the toes spread in order to support their weight. Though initially unable to walk, the rats started to regain use of their legs after three weeks and were able to function normally after six weeks.

This study demonstrated that biodegradable micropatterned conduits pre-seeded with Schwann cells that provide a combination of physical, chemical and biological guidance cues for regenerating axons at the cellular level offer a better alternative for repairing sciatic nerve transactions than conventional biodegradable conduits.

Due to the limited availability of Schwann cells, MicroChannel Technologies plans to conduct research to study the efficacy of using various types stem cell lines, which can differentiate preferentially to neurons and astrocytes (cells in the central nervous system). Using a rat model, MicroChannel Technologies will conduct studies using conduits with micropatterned film inserts preseeded with various stem cells to promote sciatic nerve regeneration. Contingent on the progress and success of these peripheral nerve studies using neural stem lines, MicroChannel Technologies will then expand the scope of research to include optic nerve regeneration.