Covol Technologies Inc. Receives Final $4 Million Contingent Fee Payment.

Business Editors

LEHI, Utah--(BUSINESS WIRE)--Aug. 21, 2000

Covol Technologies Inc. (Nasdaq:CVOL) today announced that it has received the final contingent fee payment of $4 million related to the sale of the River Hill facility.

Covol has now received all of the contingent fee payments related to the sale of all of its facilities. This final payment required the River Hill facility to operate at 115 percent of rated capacity for three consecutive months or to operate below certain operational costs, which was accomplished on July 26, 2000.

Brent M. Cook, president, stated, "The receipt of all of our contingent payments, along with significantly improved royalty and binder sales that have been previously announced, has allowed the company to retire substantially all of its debt and to more rapidly implement its new strategic plan and direction."

Kirk A. Benson, chairman and chief executive officer, added: "We are pleased with the receipt of this payment and the progress we are making towards our new direction. We have been successful in strengthening numerous aspects of the company's financial condition. This is a key foundation to our continued growth and development of the company."

Covol is a technology company that commercializes knowledge-driven and technology-based services and products.

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 Covol's ability to successfully negotiate terms and consummate proposed transactions, ability to negotiate settlements, 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.