ZILA Zila (MM)

Zila, Inc. (Nasdaq GM: ZILA) received shareholder approval at a Special Shareholders Meeting held September 27, 2006 to divest its wholly-owned subsidiary Zila Nutraceuticals. The divestiture is expected to be completed on October 2, 2006 for a total cash transaction of $37.5 million with up to an additional $3 million to be paid through an earn-out formula dependent upon the future performance of the business. Zila Nutraceuticals manufacturer and marketer of Ester-C(R) and Ester-E(R), was purchased by NBTY, Inc. (NYSE: NTY). The sale is consistent with Zila's strategy of focusing its business on cancer detection technologies and divesting its non-core assets. About Zila, Inc. Zila, Inc., headquartered in Phoenix, is a leading cancer diagnostic company initially focused on oral cancer: Zila Pharmaceuticals is dedicated to establishing ViziLite(R) Plus as the new standard of care within dental offices nationally for the early detection of oral abnormalities that could lead to cancer. Zila Biotechnology is focused on achieving regulatory approval for the next generation oral cancer diagnostic, OraTest(R), followed by the development of additional applications of its cancer detection technologies including products for the early detection of cervical and esophageal cancer. 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, profitability, cash flows and capital needs. 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 Form 10-K for its fiscal year ended July 31, 2005. Zila, Inc. (Nasdaq GM: ZILA) received shareholder approval at a Special Shareholders Meeting held September 27, 2006 to divest its wholly-owned subsidiary Zila Nutraceuticals. The divestiture is expected to be completed on October 2, 2006 for a total cash transaction of $37.5 million with up to an additional $3 million to be paid through an earn-out formula dependent upon the future performance of the business. Zila Nutraceuticals manufacturer and marketer of Ester-C(R) and Ester-E(R), was purchased by NBTY, Inc. (NYSE: NTY). The sale is consistent with Zila's strategy of focusing its business on cancer detection technologies and divesting its non-core assets. About Zila, Inc. Zila, Inc., headquartered in Phoenix, is a leading cancer diagnostic company initially focused on oral cancer: -- Zila Pharmaceuticals is dedicated to establishing ViziLite(R) Plus as the new standard of care within dental offices nationally for the early detection of oral abnormalities that could lead to cancer. -- Zila Biotechnology is focused on achieving regulatory approval for the next generation oral cancer diagnostic, OraTest(R), followed by the development of additional applications of its cancer detection technologies including products for the early detection of cervical and esophageal cancer. 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, profitability, cash flows and capital needs. 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 Form 10-K for its fiscal year ended July 31, 2005.