ZILA Zila (MM)

Zila, Inc. (Nasdaq:ZILA) today commented on a study conducted for the Australian company, Phosphagenics Limited, that confirms an earlier study suggesting that Ester-E(R) may proactively benefit cardiovascular health. In this animal study, Ester-E(R) significantly reduced LDL-C (so-called bad cholesterol), triglycerides, and plaque formation, while regular vitamin E had no significant effect. Zila Nutraceuticals, Inc., a wholly owned subsidiary of Zila, Inc., has an exclusive license to the patented Phosphagenics vitamin E technology within the dietary supplement category and currently produces and distributes Ester-E(R) in the United States. The study data showed that this unique form of vitamin E lowered bad cholesterol concentrations in blood by up to 44% and triglycerides by up to 51% in mice fed normal diets. When fed high cholesterol diets, Ester-E(R) significantly reduced plaque formation in the aorta by 58%. Again, regular vitamin E had no significant effect on plaque formation. These results confirm the earlier animal study indicating that Ester-E(R) may have the potential to yield healthier levels of total cholesterol, triglycerides and LDL-C in humans. The animal model chosen for the trials is commonly used in cardiovascular research as it mimics many of the properties observed clinically in humans. "We are encouraged that these results support the earlier animal study. Based on these animal studies, as well as earlier in vitro studies, we are confident in the potential of Ester-E(R) to support cardiovascular health in humans," said Larry E. Robinson, Ph.D., Vice President of Scientific Affairs for Zila Nutraceuticals, Inc. "We are very pleased with these results as we continue to push forward with research into the benefits of Ester-E(R)," added Douglas D. Burkett, Ph.D., Chairman, Chief Executive Officer and President of Zila, Inc. "We are conducting our own Ester-E(R) clinical trial in humans to provide further support for the product's health benefits, including its effect on cardiovascular health. We look forward to reporting on those results upon the completion of the trial." "Zila is committed to the growth of our nutraceutical business by developing and bringing to market a line of superior efficacy dietary supplements that promote the health of consumers globally under the well-known Ester brand name," concluded Burkett. A copy of Phosphagenics' news release announcing the results of the original study can be found at www.phosphagenics.com. For more information about Ester-E(R), visit www.ester-e.com. Ester-E(R) is the registered trademark of Zila Nutraceuticals, Inc. Information and statements regarding dietary supplements have not been evaluated by the Food and Drug Administration and are not intended to diagnose, treat, cure, or prevent any disease. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based largely on Zila's expectations or forecasts of future events, can be affected by inaccurate assumptions and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the Company's control. Therefore, actual results could differ materially from the forward-looking statements contained herein. A wide variety of factors could cause or contribute to such differences and could adversely impact revenues, margins, profitability, cash flows and capital needs, the ability of the Company to maintain required cash flows and cash availability to implement its business plan and appreciation in the market value of Zila's common stock. Such factors include, but are not limited to: increased competition from current competitors and new market entrants; the Company's ability to maintain, expand, or in certain cases, regain distribution within new or existing channels of trade for its products. There can be no assurance that the forward-looking statements contained in this press release will, in fact, transpire or prove to be accurate. For a more detailed description of these and other cautionary factors that may affect Zila's future results, please refer to Zila's Report on Form 10-K for its fiscal year ended July 31, 2005, filed with the Securities and Exchange Commission.