Covol Technologies Inc. Sells Another Synthetic Fuel Facility.

Business Editors

LEHI, Utah--(BUSINESS WIRE)--Jan. 18, 2000

Covol Technologies Inc. (Nasdaq:CVOL), Tuesday announced the sale of another synthetic fuel facility.

The plant, Pocahontas Synfuel, also referred to as the Algoma facility, is located in North Fork, W.Va. The facility was purchased by a subsidiary of a major U.S. electric utility company. Proceeds from the sale consist of cash at closing and an additional payment upon being placed in commerical operations.

Covol will also receive an ongoing royalty based upon production and sales of synthetic fuel from this facility.

Kirk A. Benson, chairman and chief executive officer, commented, "We are pleased that Covol's continuing efforts to sell its facilities is resulting in successful transactions. We are rapidly reducing Covol's debt and increasing future potential royalties."

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.