Yes, it will even convert an entire folder of clippings. Not only that, but you can control how it converts the file. You control the converted file's type, font, size, style, and window type. ClipDragon converts text, graphics, and even sounds to the format of your choice. It's amazingly customizable.
Speed is another plus.
ClipDragon does it's job very quickly. And with under 500K of RAM needed, it is not a memory hog. The only feature that ClipDragon lacks is the ability to convert an entire folder of clippings into a single text file. Instead, it converts each clipping into a separate file. ClipDragon looks like a promising utility, so I can imagine this feature in a future version.