Covol Technologies Inc. Receives River Hill Contingent Payment.

Business Editors

LEHI, Utah--(BUSINESS WIRE)--July 7, 2000

Covol Technologies Inc. (NASDAQ:CVOL), Friday announced that it has successfully met the conditions triggering a lump sum advanced royalty payment on the River Hill facility.

The gross payment to Covol is $5.75 million. When Covol sold its River Hill facility in August 1999, there were two contingent payments stipulated. The first of these payments was contingent upon Covol obtaining a three-year off-take agreement for the purchase of the synthetic fuel produced at the facility, in addition to producing at least 10,000 tons of synthetic fuel in a consecutive 10-day period.

The second contingent payment is based upon Covol operating the River Hill facility at 115 percent of rated capacity over a consecutive three-month period. Covol met the requirements of the first contingent payment and received the funds on June 30, 2000.

One of Covol's key objectives over the last year was the sale of the four facilities the company constructed. After meeting this objective, Covol then focused on achieving the contingent payments related to the sales of its facilities.

As previously announced, Covol received two contingent payments in April 2000, and with the receipt of this most recent contingent payment, it leaves only one additional contingent payment of $4 million to be received. Accordingly, Covol has achieved three of the four contingent payments.

Steven G. Stewart, chief financial officer, commented, "With the realization of the River Hill contingent payment, Covol was able to end the current quarter with over $10 million in cash. We are pleased with Covol's current liquidity and appreciate the efforts made by the Covol employees that caused these contingent payments to be earned.

"We look forward to realizing our final contingency payment later this year."

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.