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OriginOil Receives Increased Order for Large-Scale Algae Extraction System

New total brings orders to $1 million for the year to date

Los Angeles, CA — August 12, 2011 — OriginOil, Inc. (OOIL), the developer of a breakthrough technology to extract oil from algae and an emerging leader in the global algae oil services industry, today announced it recently received an increased order for a large-scale algae extraction system from MBD Energy, Ltd. (“MBD”), a leading solutions provider in the field of industrial CO2 waste management.

“On May 23, 2011, we announced that we received a firm order for a large-scale extraction system from MBD,” said Riggs Eckelberry, OriginOil CEO. “Recently, MBD increased this order due to changes in configuration, and issued a purchase order on July 29, 2011. The total value of this purchase order is $850,000, of which $297,500, or 35%, was paid on August 5, 2011.”

The second payment for this order, for $425,000 or 50% of the total, will be due within five (5) business days after notification from OOIL to MBD of the availability of the extraction system and a successful inspection and power test. The final payment of $127,500, or 15% of the total, will be due within five (5) business days after the completion of installation and performance acceptance.

In January of this year, OriginOil received an order from MBD totaling $150,000 for a mobile system. At the time, OriginOil received a deposit of 50%, with future payments of 25% respectively for notification of availability, and completion of installation.

The total of these orders represents a backlog of $1 million for the year to date.

The new system on order is one of the largest next-generation extraction systems of its kind in the world. The equipment is expected to process up to 1100 liters (300 gallons) per minute of algae culture continuously, enough to process the daily harvest at MBD’s upcoming one-hectare site at Queensland’s Tarong power station.

According to MBD, the one-hectare facility will use the power station’s CO2-laden flue-gas to feed a Bio-CCS (Bio-based Carbon Capture and Storage) Algal Synthesizer. It will serve as proof of concept for a larger, second stage facility of up to 80 hectares (197 acres) before being progressively expanded to a much larger third stage facility.

MBD is regarded as being at the forefront of solutions for stationary industrial emitters such as power stations, smelters and refineries – that securely and efficiently recycles captured flue-gas emissions into oil-rich algal biomass via proprietary systems.

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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