Zila Rejects Matrixx Claims
2003-04-16 08:05 (New York)
News Editors/Business Editors/Health/Medical Writers
PHOENIX--(BUSINESS WIRE)--April 16, 2003--Zila, Inc.
(Nasdaq:ZILA)--On April 4, 2003 Matrixx Initiatives, Inc. ("Matrixx")
commenced arbitration proceedings against the Company's Zila Swab
Technologies, Inc. subsidiary ("ZST") and filed a claim against the
Company and ZST in the Superior Court of Arizona seeking a temporary
restraining order ("TRO"). Under its arbitration claim, which seeks
monetary damages, Matrixx alleges that ZST breached certain of its
obligations by failing to produce requested levels of swabs for
Matrixx under a swab manufacturing contract and by raising its prices.
In the TRO action Matrixx seeks to require ZST to produce at requested
levels and at the former prices.
Zila and ZST believe the claims are wholly without merit and
intend to vigorously defend these actions. It is Zila's policy to
aggressively pursue all appropriate courses of action to protect the
interest of Zila and its shareholders.
About Zila
Zila, Inc., headquartered in Phoenix, is an international provider
of healthcare and biotechnology products for dental/medical
professionals and consumers. Zila has three business units:
Zila Biotechnology, a research, development and licensing
business specializing in pre-cancer/cancer detection through
its patented Zila(R) Tolonium Chloride and OraTest(R)
technologies.
Zila Pharmaceuticals, "The Oral Soft Tissue Experts" marketing
ViziLite(TM) oral examination kits, Zilactin(R) OTC oral care
products, and Peridex(R) prescription periodontal rinse.
Zila Nutraceuticals, manufacturer and marketer of Ester-C(R),
a branded, superior efficacy nutrition product.
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, including litigation.
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 and 10-K/A for its fiscal year ended July 31,
2002, and its Form 10-Q for the quarter ended January 31, 2003, filed
with the Securities and Exchange Commission.
--30--MCC/sf*
CONTACT: ZILA, Inc., Phoenix
Doug Burkett, 602/266-6700
KEYWORD: ARIZONA
INDUSTRY KEYWORD: LEGAL/LAW MANUFACTURING PHARMACEUTICAL
BIOTECHNOLOGY CLASS ACTION LAWSUITS PRODUCT
SOURCE: ZILA, INC.
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