Covol Technologies Inc. Retires Remaining Debt With Trans Pacific Stores.

Business Editors

LEHI, Utah--(BUSINESS WIRE)--July 14, 2000

Covol Technologies Inc. (Nasdaq:CVOL), Friday announced that it has retired its remaining debt originally incurred with Trans Pacific Stores and recently assigned to Cherokee Associates.

This debt had a 14 percent interest rate and was due April 200l. The early retirement of the debt further reduces Covol's capital cost structure and eliminates the negative arbitrage between the cost of the debt and the earnings on the company's free cash position. All security interests related to the debt will be released.

Steven G. Stewart, Covol's chief financial offficer, stated, "The pre-payment of the Trans Pacific Stores debt accomplishes two important steps for the company. First, it eliminates our most expensive debt instrument and secondly, it reduces our remaining debt to $6 million."

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.