"Court Rules in Zila's Favor; Denies Matrixx Request for Temporary Order
2003-04-23 08:05 (New York)
Business Editors/Health/Medical Writers
PHOENIX--(BUSINESS WIRE)--April 23, 2003--Zila, Inc. (Nasdaq:ZILA)
announced that an Arizona Superior Court Judge has denied the request
of Matrixx Initiatives, Inc. (Matrixx) for a temporary restraining
order (TRO) against Zila Swab Technologies, Inc. (ZST), a subsidiary
of Zila, Inc. The TRO would have prohibited ZST from raising prices
under its contract with Matrixx.
Earlier this year ZST increased its prices to Matrixx under the
contract. On April 4, 2003, Matrixx commenced arbitration proceedings
against ZST and filed a claim against Zila and ZST in the Arizona
Superior Court seeking the TRO and damages.
In order to have a TRO issued, the party seeking it must, among
other factors, demonstrate a strong likelihood of succeeding on the
merits of the case. In this regard, the Court stated, "On the record
before it, this Court cannot determine that Matrixx will succeed on
the claims relating to the contract interpretation."
Zila and ZST believe the Matrixx claims are wholly without merit.
Zila has filed a motion to dismiss the remainder of the Superior Court
action. It will continue to pursue aggressively all appropriate
courses of action to protect the interests 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--VS/cg*
CONTACT: Zila, Inc., Phoenix
Doug Burkett, Ph.D., 602/266-6700
KEYWORD: ARIZONA
INDUSTRY KEYWORD: LEGAL/LAW MEDICAL PHARMACEUTICAL BIOTECHNOLOGY
SOURCE: Zila, Inc.
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