Covalon announces underwritten private placement

February 22, 2006

(Not for dissemination in the United States)

Mississauga, Ontario – February 22, 2006: Covalon Technologies Ltd. (“Covalon”) (TSX VENTURE: COV) is pleased to announce that it has entered into an agreement with Octagon Capital Corporation where it will purchase 5,000,000 units of Covalon Technologies Ltd. on an underwritten, private placement basis, at a price of $.50 per unit for gross proceeds of $2,500,000. At the same time Octagon Capital Corporation will act as lead agent for a private placement of up to 11,000,000 additional units at the offering price for gross proceeds of up to an additional $5,500,000 on a best efforts basis. Each unit shall consist of one common share and one common share purchase warrant. Each whole common share purchase warrant shall entitle the holder thereof to purchase one additional common share of the Company at a price of $.75 for a period of eighteen (18) months from the date of closing expected to occur on or about March 16, 2006. The completion of this offering is subject to receipt of all necessary regulatory approvals from the TSX VENTURE EXCHANGE.

The proceeds will be used for general working capital and to accelerate the development of the company’s drug eluting vascular wraps, vascular grafts and cardiac tissue patch products.

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.

For further information please contact:
William Jackson, CFO & COO
Covalon Technologies Ltd.
T: (905) 568-8400
F: (905) 568-5200
www.covalon.com

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.