To: DanZ who wrote (4290 ) 4/24/2003 9:42:08 AM From: StockDung Read Replies (1) | Respond to of 5582 "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. Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com -0- Apr/23/2003 12:05 GMT