Covalon Technologies Ltd.

Covalon Technologies Ltd.

January 27, 2006 17:00 ET

Covalon Earnings For The Year Ending September 30, 2005

MISSISSAUGA, ONTARIO--(CCNMatthews - Jan. 27, 2006) - Covalon (TSX VENTURE:COV) is pleased to announce that it has filed its first set of annual audited financial statements.

The company continued to be classified as a Development stage company for 2005 and incurred a loss of $.05 per share. During 2005 the Company had sales orders totaling $541,606 and invoiced sales of $138,359. The Company has now launched both ColActive, a collagen wound dressing and ColActive-Ag, an antimicrobial silver collagen wound dressing and is now consistently generating revenue. The company is no longer considered; "Development Stage".

Covalon is bringing on-stream increased production capacity to improve order processing efficiency and decrease order backlogs. These changes are designed to increase inventory turnover and improve cash flow for 2006.

Covalon Technologies Ltd. is a company with advanced medical products that has developed and patented advanced therapeutic biomaterials for wound care and surgical applications and coatings. Polymer chemistry and surface coating technology have been combined to create a range of time-release drug delivery platforms that are applied to many medical devices to treat many critical conditions. A variety of applications for these technologies have been identified and specific products have been developed. The products offer features and benefits providing solutions to many of the problems caused by current devices and their material properties which are used by most medical device manufacturers and suppliers. The problems include infection, poor biocompatibility, and microbial attachment.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Covalon Technologies Ltd.
    William Jackson
    CFO & COO
    (905) 568-8400
    (905) 568-5200 (FAX)