ZILA Zila (MM)

Zila, Inc., (NASDAQ:ZILA), announced today that its wholly owned subsidiary, Zila Nutraceuticals, Inc., has signed an agreement with Asahi Godo to distribute its Ester-C(R) advanced vitamin C ingredient in Japan. As part of this agreement, Zila Nutraceuticals and Asahi Godo will work together to attain Japanese regulatory approval in order to allow the sale of Ester-C(R), considered a food additive in Japan, in vitamin and dietary supplement products as well as foods and beverages. According to the Global Nutrition Group, a Tokyo-based research consulting firm, sales in the Japanese nutrition market reached nearly 30 billion US dollars in 2004, making it the world's second largest market behind the United States for nutrition products. "The introduction of Ester-C(R) into the second largest nutritional supplement market in the world represents a major milestone in the execution of Zila Nutraceuticals' aggressive international plan," said Douglas D. Burkett, Ph.D., Chairman, Chief Executive Officer and President of Zila, Inc. "We are very excited about this new partnership and are fully committed to bringing the benefits of Ester-C(R) to the people of Japan as well as to consumers throughout the world." About Asahi Godo Founded in 1966, Asahi Godo is headquartered in Kyoto with branch offices in Tokyo and Shizouka, Japan. The company provides health supplements and packaging services to major Japanese companies within the nutritional, cosmetic, and pharmaceutical industries. "We look forward to our partnership with Zila and feel very confident that we can make Ester-C(R) the number-one branded ingredient in the Japanese supplement market," said Tadato Shiono, General Manager of Asahi Godo. About Ester-C Ester-C(R) calcium ascorbate is an advanced form of vitamin C. Unlike regular vitamin C, Ester-C(R) is non-acidic, so it's gentle on the stomach. Ester-C(R) is a readily absorbed form of vitamin C that helps support immune health, heart health, joint health and vision. For more information about Ester-C(R), visit www.ester-c.com. Ester-C(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. About Zila Zila, Inc., headquartered in Phoenix, is an innovator in preventative healthcare technologies and products, focusing on enhanced body defense and the detection of pre-disease states. Zila has three business units: -- Zila Biotechnology, a research, development and licensing business specializing in pre-cancer/cancer detection through its patented Zila Tolonium Chloride and OraTest(R) technologies. -- Zila Pharmaceuticals, marketer of products to promote oral health and prevent oral disease, including ViziLite(R) Plus oral lesion identification kits and Peridex(R) prescription periodontal rinse. -- Zila Nutraceuticals, manufacturer and marketer of Ester-C(R) and Ester-E(TM) branded, highly effective forms of Advanced Protection vitamins C and E. For more information about Zila, visit www.zila.com. 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.