MISSISSAUGA, ONTARIO -- (MARKET WIRE) -- March 27, 2007 -- Under the terms of the agreement announced March 19, 2007 between Covalon Technologies Ltd. (the “Corporation” or “Covalon”) (TSX VENTURE: COV) and Smith & Nephew (NYSE: SNN)(LSE: SN), the major financial component will be sales of product to Smith & Nephew for worldwide distribution. The value will vary depending on the commercial conditions in the markets in which Smith & Nephew will promote the products. It is expected to have a total minimum of milestone payments of US$5 million over the term. In addition to sales, Covalon received an up-front exclusivity payment of US$2 Million.
