Covol Technologies Inc. Completes Funding of September Financing Agreement.

LEHI, Utah--(BUSINESS WIRE)--Dec. 17, 1999--

Covol Technologies Inc., (NASDAQ:CVOL), Friday announced that DH Financial L.C. has agreed to fund the final $1.5 million of financing as provided under the September 1999 financing previously disclosed.

These proceeds will be used for additional working capital as Covol completes the timely sale of its remaining synthetic fuel facilities.

This funding has similar terms and conditions as the September financing. The financing provides for a 10 percent placement fee.

The debentures are convertible at the lesser of market rates at closing, which was Dec. 7, 1999, or market rates at the time of conversion. Warrants equal to 40 percent of the shares issuable under the debenture were issued with an exercise price of 120 percent of market rates at closing.

The company can redeem these outstanding debentures at 125 percent of face value prior to their conversion. The debentures are convertible after Jan. 21, 2000. Covol has assigned royalties to be received from a licensed synthetic fuel facility as collateral for the financing.

Covol is a technology 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. 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.