Smith & Nephew Announces Worldwide Agreement With Covalon Technologies

HULL, England -- Smith & Nephew's Advanced Wound Management division announces today the signing of an exclusive worldwide sales, marketing and distribution

agreement with Covalon Technologies for its advanced range of collagen dressings. Smith & Nephew Advanced Wound Management will be the sole distributor of ColActive(TM) products globally, effectively immediately. The agreement not only allows the distribution of ColActive(TM) range of products based on Covalon's unique patented technology, but also grants access and distribution rights to a differentiated new product development portfolio in the field of advanced wound care utilizing the same unique technology. This will yield further new product introductions in 2007. This agreement further strengthens the Smith & Nephew Advanced Woundcare product portfolio alongside our ALLEVYN* foam and ACTICOAT* antimicrobial technologies and offers customers a more comprehensive solution to address their wound care needs.

"The addition of the Covalon collagen dressing range truly strengths the Smith & Nephew product portfolio and the obvious synergies between the two companies also look set to deliver exciting future new product development opportunities in addition to the current distributed products," said Roger Teasdale, senior vice president of the Advanced Woundcare Strategic Business Unit.

Joe Woody, president of Smith & Nephew Advanced Wound Management, said, "This is an important entry into a fast growing product category and reinforces our strategic focus on the U.S. The Covalon agreement is in line with our strategy to aggressively acquire or partner, enabling access to advanced technologies that deliver true patients benefits and shareholder value."

Source: Smith & Nephew