Covol Technologies Inc. Announces Redemption of Convertible Debt.

Business Editors

LEHI, Utah--(BUSINESS WIRE)--Jan. 24, 2000

Covol Technologies Inc., (NASDAQ: CVOL), Monday announced that pursuant to certain provisions of the financing agreements with Aspen Capital Resources, Covol redeemed $1,040,000 of its convertible debt.

At the time of the redemption, this debt was convertible into approximately 2 million shares of common stock of Covol.

Steven G. Stewart, Covol's chief financial officer, commented, &uot;The sale of Company-owned synthetic fuel facilities provided funding to redeem this debt obligation. We are pleased that Covol was able to retire a substantial amount of potentially dilutive securities.&uot;

Covol is a technology licensing company which engineers industrial waste and other by-products into value-added fuels and resources.

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. Although Covol believes that its expectations are based on reasonable assumptions, there are a number of business factors which singularly or combined may affect the company'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 the above identified forward-looking statements include but are not limited to: the ability to successfully negotiate terms and consummate proposed transactions, ability to sell company-owned synthetic fuel facilities on favorable terms, including the ability to negotiate settlements of contract terminations caused by facility relocations, 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 materials, ability to locate appropriate sites for facilities, ability of Covol to complete specific research and development projects, and the commercial viability of Covol's technologies.