Covalon Technologies Ltd.
TSX VENTURE : COV

Covalon Technologies Ltd.

June 08, 2005 10:48 ET

Covalon Receives FDA Approval For Its Antimicrobial Silver Collagen Wound Dressing

MISSISSAUGA, ONTARIO--(CCNMatthews - June 8, 2005) - Covalon Technologies Ltd. (Covalon) (TSX VENTURE:COV) is extremely pleased to announce that it has received FDA approval for its antimicrobial silver collagen wound dressing, ColActiveAg™. Covalon is now in a position to launch ColActiveAg™ and will now begin to process orders for ColActiveAg™. Covalon has an exclusive distribution agreement with Hartmann-Conco Inc. ("Hartmann-Conco") to distribute Covalon antimicrobial silver collagen wound dressings under the brand name ColActiveAg™. The agreement provides Hartmann-Conco with exclusive distribution rights for the United States.

Covalon CEO, Dr. Frank DiCosmo said "this is an extremely important milestone for Covalon to receive this FDA approval. ColActiveAg™, will be the first antimicrobial collagen dressing sold and it will set the new standard for antimicrobial dressings. The company expects this innovative new product to be a significant revenue generator and we look forward to working with our partner Hartmann-Conco to maximize the potential of this innovative new product and continue to build on our successes".

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

- Pressure ulcers

- Diabetic ulcers

- Ulcers caused by mixed vascular etiologies

- Venous ulcers

- First and Second degree burns

- Donor and graft sites

- Abrasions & lacerations

- Dehisced surgical wounds

- Traumatic wounds healing by secondary intention

Covalon and Hartmann-Conco expect ColActive Ag™ to have a significant impact in the wound care market.

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.

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