Covalon first quarter revenue decreases 17% to $572,006

Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced medical technologies company, today announced financial results for its first quarter ended December 31, 2012. Revenue for the quarter was $572,006, down 17%, operating expenses were $1,018,752, down 8% and the net loss for the first quarter was $794,481 or $0.01 per share compared to $800,054 or $0.01 per share in the first quarter of the previous year.

During the quarter, the Company continued to invest in the launch of its two new products cleared by the United States FDA - IV Clear™ and SurgiClear™ - which resulted in additional investment in sales and marketing expenses to launch the products.  In the previous fiscal year, the Company invested in research and development for outside testing to provide data for FDA and other regulatory filings for the two new products.

During the quarter, Covalon consumed $690,752 of cash in operations, spend $122,924 financing working capital and invested $75,704 in patents, trademarks and other assets, mainly associated with IV Clear and SurgiClear.

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