Covalon Announces Distribution Agreement

August 15th, 2011

MISSISSAUGA, Ontario – /CNW/ - Covalon Technologies Ltd. (the
"Company" or "Covalon") (TSXV: COV), an advanced medical technologies company,
today announced a multi-year distribution agreement with a Canadian distributor that
will export and distribute Covalon's ColActive® Plus Ag collagen wound care dressings
in the Middle East. ColActive® Plus Ag is a patented line of collagen matrix wound
dressings which are available for distribution and cleared for regulatory purposes in the
United States, Canada and other jurisdictions.
The first order under the agreement has been received and the agreement includes
purchase commitments for a minimum of $700,000 in the first year of the agreement
with a total minimum purchase commitment of approximately $11.2 million over five
years.

Brian Pedlar, Covalon CEO, said, "Covalon is pleased to enter into a relationship that
provides us with initial distribution into the Middle East. Our partner has demonstrated
that they have excellent healthcare relationships in a number of Middle Eastern
countries, and we look forward to expanding this new relationship through the
distribution of additional medical products. We are dedicated to bringing world-class
medical products to the Middle East healthcare market, which we believe has been
under-served by many North American medical companies."
“Covalon recently disclosed that it recovered the exclusive worldwide rights to its
advanced wound care products from a major medical company,” stated Pedlar. “This
has allowed Covalon to start to aggressively market its existing advanced wound care
products as well as introduce both new formulations and totally new technologies. We
expect to announce additional deals in the near future.”
About Covalon
Covalon Technologies Ltd. is a unique medical technologies company engaged in the
research, development, and commercialization of advanced tissue repair applications,
infection control, and specialized coatings for medical and consumer products.
Together, our technology platforms, wound care products, and consulting services
deliver a suite of cost-effective solutions to help our customers achieve product
differentiation through improved patient outcomes. Our technologies address important
healthcare issues such as infection control, medical device biocompatibility and healthy
tissue repair. To learn more about Covalon, visit our website at www.covalon.com
For further information please contact:

Brian Pedlar
CEO, Covalon Technologies Ltd.
E: bpedlar@covalon.com
T: (905) 568-8400 x 233
F: (905) 568-5200
www.covalon.com
© 2011 Covalon Technologies Ltd.

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This news release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting product approvals, acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, the regulatory environment, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors should consult the Company's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. The Company assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.

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