Press Release

August 08, 2006

TORONTO, ONTARIO--(CCNMatthews - August 08,2006) - On August 4, 2006, the board of directors of Covalon Technologies Ltd. (TSX VENTURE:COV) granted 875,000 options to purchase common shares to certain of its directors, officers, employees and consultants. The options have an exercise price of $0.50 per share with a vesting period of two years, on a quarterly schedule, or 12.5% per quarter and expire on the third 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