Covalon Technologies Ltd. Announces The Closing Of Qualifying Transaction.

TORONTO -- COVALON TECHNOLOGIES LTD. (formerly Seder Capital Corp.) (TSX VENTURE:SCP.P) ("CTL" or "Seder"), a capital pool company, today announced the closing of the previously announced acquisition by Seder of Covalon Technologies Inc. ("CTI"), a Toronto area based medical biomaterial company. The acquisition is Seder's qualifying transaction (the "Qualifying Transaction") pursuant to the policies of the TSX Venture Exchange (the "Exchange"). The Qualifying Transaction remains subject to CTL satisfying the final conditions of the Exchange.

On December 21, 2004, Seder acquired approximately 11.57 million issued and outstanding common shares of CTI ("CTI Shares") and approximately $1.34 million principal amount of convertible debentures of CTI ("CTI Convertible Debentures") by issuing common shares of CTL ("CTL Shares") to the holders of issued and outstanding CTI Shares, and CTL Shares and Series II Warrants ("CTL Series II Warrants") to the holders of issued and outstanding CTI Convertible Debentures on the basis of 2.2 CTL Shares for each CTI Share tendered and 3384.6 CTL Shares and 769.2 CTL Series II Warrants for each $1,000 principal amount of CTI Convertible Debentures tendered. In addition, Seder issued replacement options and warrants to holders of options and warrants of CTI who surrendered such securities to Seder. The replacement options and warrants issued by Seder are substantially similar to the options and warrants of CTI surrendered, except in respect of the number of common shares to which a holder is entitled upon exercise, which term was modified to give effect to the Qualifying Transaction. Research Capital Corp. acted as sponsor for the Qualifying Transaction.

After completion of the Qualifying Transaction, CTL will hold 100% of the issued and outstanding shares of CTI.

On December 17, 2004, at a meeting held prior to the closing of the Qualifying Transaction, the shareholders of Seder elected Michael Aron, Frank DiCosmo, Gary German, William Jackson, Jacques Lemmetti and G. Michael Newman to the board and approved changing the name of Seder to Covalon Technologies Ltd., changing its auditors from Schwartz Levitsky Feldman LLP to BDO Dunwoody LLP, the current auditors of CTI, and moving its registered office from Richmond Hill, Ontario to Mississauga, Ontario all of which became effective upon the closing of the Qualifying Transaction.

Immediately following the closing of the Qualifying Transaction, there were 37,009,593 CTL Shares issued and outstanding.

The board of directors of CTL intends to grant an aggregate of 1,386,674 options to acquire CTL Shares, exercisable at any time on or before the fifth anniversary of the date of grant at an exercise price of $0.30 per share, to certain directors, officers, employees and consultants of CTL as disclosed in the Filing Statement of Seder dated December 9, 2004.

Further information with regard to the Qualifying Transaction is contained in the Filing Statement of Seder dated December 9, 2004 which may be found on SEDAR at www.sedar.com

The CTL Shares will remain halted pending final Exchange approval of the Qualifying Transaction and the issuance by the Exchange of the Final Exchange Bulletin at which time CTL's trading symbol will become "COV".

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.