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OriginOil’s EWS Petro to clean frac flowback water at Monterey Formation via Frac-Back system

PearlH2O schedules the fourth-quarter installation of a commercial-scale continuous water reuse system powered by OriginOil technology

Los Angeles, California – September 30, 2013 – OriginOil, Inc. (OTC/BB: OOIL) developer of Electro Water Separation™ (EWS), the high-speed, chemical-free process to clean up large quantities of water, today announced that licensee PearlH2O has scheduled the installation of a commercial-scale three-quarter barrel per minute Frac-Back™ system in California’s Monterey Formation during the fourth quarter of 2013. The PearlH2O system incorporates OriginOil’s EWS Petro™ process at the first stage, to help effectively and economically treat frac flowback water for immediate reuse.

Cory Severson, president of PACE’s technology spinoff PearlH2O, said, “We are excited about the opportunity to build our first commercial scale system powered by OriginOil’s EWS Petro™ process. Our plan is to deploy this system in the fourth quarter of 2013 at a cost below $1 million. We expect this installation to be the first of many in California within the next year.”

California Governor Jerry Brown recently signed a bill to permit fracking in the state under stringent controls.

“Cleaning frack water for immediate re-use can greatly reduce water use and the impact of tanker truck traffic on California roads,” said Riggs Eckelberry, OriginOil CEO. “This kind of technology is critical to making California’s frack program work.”

“This installation is a major step toward building systems as large as ten barrels per minute,” said Bill Charneski, OriginOil COO. “It could validate our system’s ability to continue to scale and also expedite our own pay-per-gallon Throughput Program.”

“It is a remarkable milestone for PearlH2O and OriginOil to install Frac-Back systems at commercial scale,” commented Gerald Bailey, OriginOil’s oil and gas industry advisor and former president of Exxon Arabian Gulf, Abu Dhabi, and UAE. “The oil and gas industry is naturally slow to adopt new technologies, making it difficult for many innovators to achieve their first commercial order. We believe that now, prospective OriginOil customers, eager to see the technology in the field, will get the validation they need.”

The non-exclusive licensing agreement with PearlH2O, announced in October 2012, launched OriginOil’s private labeling licensing program. In this model, OriginOil is paid a revenue share on the value of the entire system, which can be a onetime purchase or a pay-per-gallon arrangement.

Eckelberry continued, “Because our core technology has applications in a number of industries, our licensing business strategy is key to reaching these various markets rapidly and cost-effectively. And our licensees will have access to our pay-by-the-gallon Throughput Program to get deals done quickly without requiring major capital investment.”

Water is produced and used in large quantities in oil and gas operations. According to the U.S. Department of Energy, an average of 3 barrels of contaminated water is generated for each 1 barrel of oil produced. In the United States, the average is 7 barrels of water. Greentech Media reports that energy companies pay between $3–$12 to dispose of each barrel of produced water, implying a potential world market value between $300 billion and $1 trillion per year.

Safe Harbor Statement:

Matters discussed in this release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, 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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