Covol Technologies Inc. Resolves Outstanding Debt Associated With Its Wash Plant Located in Central Utah.

Business Editors

LEHI, Utah--(BUSINESS WIRE)--Feb. 9, 2000

Covol Technologies Inc. (NASDAQ:CVOL), Wednesday announced that it has restructured its outstanding debt associated with the construction of its wash plant located in Price, Utah.

The original principal and accrued interest, as of Feb. 4, 2000 totaled $4,927,000. The creditor has agreed to accept the company's note receivable of $2,965,000 from the sale of its Utah No. l synthetic fuel facility as partial payment on the debt and to extend the due date of the remaining balance of $l,962,000, until Oct. 31, 2000.

The remaining balance will bear interest at 6 percent until paid.

Steven G. Stewart, chief financial officer, commented, &uot;We are pleased that we were able to restructure the wash plant debt for three reasons. First, Covol realized $2,965,000 immediately, the full value on its note receivable, that otherwise would not have been collected in full until December 2007.

&uot;Secondly, the Company has been able to continue to reduce its debt. And third, the remaining portion of the debt has been deferred for over nine months. We appreciated the willingness of the creditor in working with us to successfully restructure this debt.&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.