Covol Technologies Expects Continued Strong Growth in Proprietary Binder Products.

Business Editors

LEHI, Utah--(BUSINESS WIRE)--Aug. 4, 2000

Covol Technologies Inc. (Nasdaq:CVOL) today announced that sales of the company's proprietary binder products had set a new record for the third fiscal quarter of 2000.

For the third fiscal quarter of 2000, Covol reported binder sales of $2.7 million, a 575 percent increase over sales of $400,000 for the same period in fiscal 1999. Synthetic fuel sales grew 340 percent to 1.3 million tons in the third fiscal quarter of 2000.

Steven Stewart, Covol's chief financial officer, said that while continued growth is expected in binder sales and synthetic fuel sales, Covol does not expect the growth to be as rapid going forward.

Driven by the 400 percent increase in license fees and binder sales for the nine months ended June 30, 2000, management also expects to report profitability for fiscal 2000, the first profitable year in Covol's history.

Covol is applying its free cash flow and other resources to make equity investments in, or to acquire control of, emerging companies, particularly in the technology sector, as its new role as a business accelerator. This new role represents the company's initiative to diversify and seek business opportunities that will drive future operating growth.

Statements in this news release that relate to future plans, possible transactions, or projected valuations are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including any statement with respect to anticipated products to be produced using Covol's technology and Covol's strategy. Such statements are subject to risks and uncertainties that could cause actual results to differ materially. There are a number of business factors that singularly or combined may affect Covol's future operating results. In addition to matters affecting Covol's industry or the coal industry or the economy generally, factors that could cause actual results to differ from expectations set forth in above identified forward-looking statements include but are not limited to the following: commercial success of the Covol binder technologies, operating issues for licensed facilities, marketing issues relating to market acceptance of products manufactured using Covol's technology, securing of necessary sites for relocation and operation of facilities, maintenance of placed-in-service requirements under Section 29 of the tax code by synthetic fuel manufacturing facilities, changes in governmental regulations or failure to comply with existing regulations which may result in operational shutdowns of licensee facilities, availability of tax credits under Section 29 of the tax code, commercial feasibility of the Covol synthetic fuel technologies upon the expiration of Section 29 tax credits, ability to meet financial commitments under existing contractual arrangements, ability to meet non-financial commitments under existing contractual arrangements, ability to commercialize the non-synthetic fuel related to Covol binder technologies which have only been tested in the laboratory and not in full-scale operations, ability to commercialize the technology of others and implement non-technology based business plans, dependence on licensees to successfully implement Covol binder technologies and making license and other payments to Covol, market acceptance of products manufactured with Covol binder technologies in the face of competition from traditional products, success in the face of competition by others producing synthetic fuel and other recycled products, and sufficiency of intellectual property protections.