Covalon Technologies Ltd.
TSX VENTURE : COV

Covalon Technologies Ltd.

August 04, 2005 10:26 ET

Covalon Launches Collagen Wound Dressings

MISSISSAUGA, ONTARIO--(CCNMatthews - Aug. 4, 2005) - Covalon Technologies Ltd. (Covalon) (TSX Venture:COV) is extremely pleased to announce its distribution partner Hartmann-Conco Inc. has officially launched Covalon's Collagen wound dressings. Covalon has an exclusive distribution agreement with Hartmann-Conco Inc. ("Hartmann-Conco") to distribute Covalon collagen wound dressings and antimicrobial silver collagen wound dressings under the brand names ColActive™ and ColActiveAg™. The agreement provides Hartmann-Conco with exclusive distribution rights for the United States.

Covalon has delivered on its first sale of ColActive totaling approximately $42,000 and currently has on hand orders totaling approximately $400,000.

William Jackson, the CFO of Covalon, said "this is an important event in the company's evolution for the following reasons:

- The company is now revenue producing;

- The burn rate has declined;

- The company is no longer solely a development company; and

- The Covalon team is now focused on expanding the sales and product offerings.

We look forward to building a profitable company over the coming months".

According to the 2000 Clinica Reports "New Developments in Wound Care ", the wound care market, world wide, exceeds $15 Billion US per year. ColActive™ "Collagen Dressing" and ColActiveAg™ "Collagen with Silver, Antimicrobial Dressing" are indicated for the management of full and partial thickness wounds.

The Hartmann-Conco group is comprised of several wholly-owned subsidiaries in 36 countries and other joint venture operations. It is one of the leading companies in its branch of industry with sales revenue of EURO 1.3 billion in 2003 and employing 10,000 people. Hartmann-Conco is a world-class manufacturer of wound-dressings and other surgical and hygiene products. Hartmann-Conco is owned by Paul Hartmann AG, a major global manufacturer of wound care products, with its head office located in Heidenheim Germany.

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 not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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.

Contact Information

  • Covalon Technologies Ltd.
    William Jackson
    Chief Financial Officer
    (905) 568-8400
    (905) 568-5200 (FAX)
    www.covalon.com