Covalon Technologies Ltd.

January 14, 2005

TORONTO, ONTARIO--(CCNMatthews - Jan. 14, 2005) - On January 14, 2005, the board of directors of Covalon Technologies Ltd. (TSX VENTURE:COV) granted 655,783 options to purchase common shares to certain of its directors, officers, employees and consultants. The options have an exercise price of $0.40 per share and expire on the fifth anniversary of the date of grant.

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.

For further information please contact: William Jackson
Chief Financial Officer
Covalon Technologies Ltd.
T: (905) 568-8400
F: (905) 568-5200
www.covalon.com