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To: SSP who wrote (55052)	7/18/2000 10:38:58 AM
From: herry iball	Respond to of 150070

ZILA: Cancer Patent News, huge volume, price nice, in for a few thousand. PHOENIX, July 18 /PRNewswire/ -- Zila Inc. (Nasdaq: ZILA), international provider of healthcare products and services for dental/medical professionals and consumers, announced that the U.S. Patent and Trademark Office has issued an additional patent that substantially broadens protection for the Zila(R) Tolonium Chloride cancer detection system. On July 11, 2000, Zila received U.S. Patent No. 6,086,852, "In Vivo Stain Composition, Process of Manufacture & Methods of Use to Identify Dysplastic Tissue." Zila Tolonium Chloride is the active ingredient in the Company's OraTest(R) oral cancer detection product. A study conducted earlier this year at UCLA discovered the method of action by which Zila Tolonium Chloride selectively stains squamous cell carcinoma, the predominant form of oral, esophageal and cervical cancer. Squamous cell carcinoma is also present in early colon cancer and some skin cancers. Zila already holds several patents regarding the chemistry and use of Zila Tolonium Chloride (a proprietary form of pharmaceutical-grade toluidine blue) as an aid in the detection and delineation of cancerous tissue. Doug Burkett, Ph.D., President of Zila BioTech, said, "Zila's new patent broadens protection for the manufacture and sale of pharmaceutical-grade toluidine blue. The patent covers the sophisticated manufacturing process that Zila perfected over a period of several years. It also increases protection of the drug substance and broadens protection of diagnostic procedures that use this drug substance to detect cancer in body tissues beyond the oral cavity. We expect the market for Zila Tolonium Chloride to grow as additional applications and markets are established in the U.S. and around the world." The OraTest product is available or approved in 15 countries; additional regulatory approvals and distribution agreements are being pursued in many countries worldwide. In the U.S., progress continues in the Company's pursuit of Food & Drug Administration (FDA) approval under the management of ILEX(TM) Oncology Services, Inc. Zila, Inc., has three operating groups. The Pharmaceuticals Group includes: Zila Pharmaceuticals, marketer of prescription and non-prescription oral healthcare products; Zila Biomedical, developer of OraTest(R) oral cancer detection products; and Zila BioTech, producer of the only pharmaceutical- grade toluidine blue -- Zila(R) Tolonium Chloride. The Professional Products Group includes Zila Dental Supply, a national dental supplies distributor. The Nutraceuticals Group includes Oxycal Laboratories and its Inter-Cal subsidiary, manufacturer and supplier of value-added ingredients, including patented Ester-C(R) branded products and botanicals such as Palmettx(TM) saw palmetto extract, for the global nutritional industry. Information is available at www.zila.com. This document 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 document 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 annual report on Form 10-K for its fiscal year ended July 31, 1999, filed with the Securities and Exchange Commission.