Covalon Receives Health Canada Approval

MISSISSAUGA, ONTARIO, May 20 (MARKET WIRE) --
Covalon Technologies Ltd. (TSX VENTURE: COV) is pleased to announce that
it has received approval from the Therapeutic Product Directorate at
Health Canada to begin marketing the Corporation's proprietary products:

- BIOSTEP(TM) Collagen Matrix Dressing, and

- BIOSTEP(TM) Ag Collagen Matrix Dressing with Silver.

The products are advanced wound care dressings that create a moist wound
healing environment, deactivate harmful wound proteases and promote
tissue growth in chronic wounds, which affect an increasingly large
number of patients and have a serious impact on their quality of life.

The products will be marketed by Smith & Nephew Inc. under the terms of
an exclusive worldwide sales, marketing and distribution agreement
announced last year.

"We are extremely pleased to receive license approvals for these
products" said Dr. Frank DiCosmo, President and CEO of Covalon.
"Clinicians participating at a clinical in-market study indicated that
these new collagen dressings facilitate granulation and epidermal
migration as the majority of patients experienced a reduction in wound
areas and an increase in the percentage of epithelial tissue over time.
In the case of BIOSTEP(TM) Ag, participating clinicians indicated that
absorption of silver by the cells appears to improve the local
microenvironment to promote the healing process". BIOSTEP(TM) and
BIOSTEP(TM)Ag are manufactured in the U.S.A. by Covalon Technologies
Ltd., exclusively for Smith & Nephew; (TM)Trademark of Smith & Nephew.

"Covalon's talented research and development staff is actively working on
broadening our proprietary collagen-based platform in order to address
other exciting medical applications in the near future", said Dr. DiCosmo.

About Covalon Technologies Ltd.:

Covalon Technologies Ltd. researches and develops advanced medical
products initially targeted at wound care and surgical applications and
coatings. Covalon's patented technology utilizes advanced therapeutic
biomaterials polymer chemistry and surface coatings 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.

Additional information can be found at www.covalon.com.

This document contains forward-looking statements. These statements
relate to future events or 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.

ISO 13485:2003 CERTIFIED

TSX Venture Exchange has not reviewed and does not
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of this release.

Contacts:
Covalon Technologies Ltd.
Frank DiCosmo, Ph.D.
President & CEO
(905) 568-8400

Covalon Technologies Ltd.
Francis K. Lindayen, C.A.
CFO
(905) 568-8400
Website: www.covalon.com

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