Covol Technologies Inc. Achieved Performance Milestone and Earned Its Fourth and Final Contingent Fee of $4 Million.

Business Editors

LEHI, Utah--(BUSINESS WIRE)--July 26, 2000

-Covol Technologies Inc. (Nasdaq:CVOL), Wednesday announced that it has successfully completed all terms and conditions that allows the company to earn its fourth and final contingency fee related to the sales of its four company-owned facilities.

The facility has successfully operated and earned the second contingent fee stipulated in the contract Covol signed with the River Hill facility in August of 1999. The company received its first contingent payment from the River Hill facility on June 30 of this year for approximately $5.75 million.

The second contingent fee of $4 million is based upon Covol being able to operate the facility at 115 percent of rated capacity over a three-month period. Covol has operated its River Hill facility for three consecutive months at a rate in excess of the required benchmark.

Brent M. Cook, president, commented, "Our personnel and the plant equipment at the facility have performed as anticipated and well above the benchmark capacity. We continue to be pleased with our operations performance."

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 which 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 which could cause actual results to differ from expectations set forth in above identified forward-looking statements include but are not limited to Covol's ability to successfully negotiate terms and consummate proposed transactions, ability to sell company-owned synthetic fuel facilities on favorable terms, ability to obtain necessary capital or financing, ability to comply with covenants in financing agreements, including financial performance criteria, ability to conserve capital through cost reductions until operating revenues exceed expenses, ability of licensees to market synthetic fuel produced, generating royalties for Covol, ability of licensees to achieve expected production levels at the synthetic fuel facilities, favorable IRS tax treatment, availability of natural resources and suitable raw material, ability to locate appropriate sites for facilities, ability of Covol to complete specific research and development projects, market penetration from competing technologies and the commercial viability of technologies.