Covalon Signs US Licensing Letter of Intent for its Anti-microbial Coating Technology

April 11, 2005

MISSISSAUGA, ONTARIO--(CCNMatthews - April 11, 2005) - Covalon Technologies Ltd. (TSX VENTURE:COV) is extremely pleased to announce that it has entered into a new license to apply its antimicrobial coating to conforming stretch bandages.

Covalon has entered into this new Letter of Intent with Hartmann-Conco Inc. USA ("Hartmann-Conco") expanding the relationship to three products. This agreement achieves the following:

• Hartmann-Conco will develop and scale up the commercial process for applying Covalon's antimicrobial coating to Conforming Stretch Bandages
• Hartmann-Conco will be responsible for the preparation and filing of the FDA filing associated with this product
• Hartmann-Conco will make three milestone payments to Covalon
• Hartmann-Conco will pay Covalon a monthly royalty based on gross sales
• Hartmann-Conco has the exclusive right use Covalon's antimicrobial coating for Conforming Stretch Bandages in the US market place
• Hartmann-Conco has agreed to guaranteed minimum annual sales volumes for five years
• Hartmann-Conco has a conditional first right of refusal for a world wide license

Covalon CEO, Dr. Frank DiCosmo said "the new Letter of Intent is an extremely important milestone for Covalon:

• It validates another exceedingly important application of Covalon's antimicrobial coating technology
• The potential of this product is significant since antimicrobial conforming gauze represents one of the largest growth product categories in the chronic wound care market
• There is only one competitor in this marketplace"

The Hartmann-Conco group comprises 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 a sales revenue of EURO 1.3 billion in 2003 and employing 10,000 people. Hartmann-Conco is a world-class manufacturer of wound-dressings, specifically gauze dressings. Hartmann-Conco is owned by Paul Hartmann AG, a major global manufacturer of wound care products, with its head office located in Heidenheim Germany.

In keeping with its strategy of rapidly bringing to market products and technologies developed "in house", Covalon also disclosed that it is in various stages of negotiations with other major international medical products distributors regarding licensing and distribution agreements for additional Covalon developed and owned product lines and technologies. The Company will announce the scope and nature of these transactions as and when they are finalized.

Covalon Technologies Ltd., is an advanced medical biosystems company 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.

This document contains forward-looking statements. These statements relate to future performance. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of any of these terms or comparable terminology. Such statements reflect the current views of management of the Company with respect to future events. Actual events or results may differ materially. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward -looking statements contained herein to reflect future results, events or developments.

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