Covol Technologies Inc. announces the formation of second limited partnership to construct coal processing facility.

LEHI, Utah--(BUSINESS WIRE)--June 18, 1996--Covol Technologies Inc. (OTC/BB:CVOL) Tuesday announced that it has entered into a second partnership agreement for the production of its patented synthetic coal fuel product.

Along with Utah Synfuel No. 1, the Alabama Synfuel No. 1 Partnership will raise $4 million to construct a coal fines processing facility. Covol's coal product qualifies as a synthetic fuel under Section 29 of the IRS Code.

Mike Midgley, company president stated, "Covol is better positioned than it has ever been," and pointed to the current move by Congress to extend Section 29 tax credits, the construction of two coal processing plants in Utah and Alabama, and the recent technology grant from the Department of Energy as examples.

The proposed extension of Section 29 for production of synthetic fuel, which was included by the Senate Finance Committee last Wednesday in the Small Business Relief Bill passed earlier by the House, extends by 12 months the deadlines for contracts and for placing coal facilities in service.

Midgley said, "The possible extension of Section 29 is significant for Covol because we are in a vastly better position to fully take advantage of the program than we were last fall when we got our Private Letter Ruling only 3 1/2 months before the contracting deadline.

"Several companies that were very interested in the coal facilities were unable to move fast enough to meet the deadlines. Now if that deadline is removed, it will be much easier to close those transactions."

Midgley also disclosed the location of the first two coal plants to be built by the company under the current provisions of Section 29. The first plant is to be located in Carbon County, Utah. The extruding equipment for that plant will be shipped by the end of June. Construction of the second plant will begin shortly thereafter in Jefferson County, Ala.

Regarding other applications of Covol's technology, Midgley disclosed that a major test burn of their iron rich briquettes material (IRM) was conducted for industry leaders at the U.S. Department of Energy's Albany Oregon Research Facility in Albany, Ore. on April 17, 1996, with good results.

The Albany Research Facility simulates actual steel making furnaces on a 1 ton basis. Covol IRM briquettes yielded a high grade low residual iron from millscale and other revert materials, recovering more than 88 percent of the recoverable iron content in the former waste material.

"More importantly," stated Midgley, "the tests have attracted the attention of key industry leaders because they showed that we can produce iron in a cost effective and environmentally friendly manner."

Midgley also said, "Our technology produces the best of both worlds. We produce a high BTU, clean burning source of energy in our coal briquettes, and an energy efficient effective source of high grade, low residual iron from our IRM briquettes for the steel industry.

"And in the process we clean up the environment and extend the nation's natural resources and fossil fuel supply. We have invested tremendous efforts and resources to get to this point and we are excited to see all of the pieces come together. We believe that our investors will be rewarded as we carry out our business plan over the coming weeks and months."

Covol Technologies Inc. is a technology development company focused on recycling yesterday's waste into tomorrow's resources.

CONTACT: Covol Technologies Inc., Lehi

Alan Ayers, 801/768-4481; Fax: [phone]