Zila Announces Increased 4Q Sales, Launch of Ester-E

Zila Announces Increased 4Q Sales, Launch of Ester-E

PHOENIXZila Inc.(NASDAQ:ZILA) announced its fourth quarter (4Q) Nutraceutical Division salesgrew approximately 30 percent over the prior year quarter (excludingapproximately $1.5 million in sales of discontinued saw palmetto products). Thecompany also announced its Ester-E enhanced vitamin product is now on theshelves of several of the nations largest retailers, with additional nationaldistribution expected through the fall.

Like Ester-C®, Ester-E will be promoted directly to consumersthrough national advertising. Larry King will continue to promote the Esterbrand, serving as the national radio spokesperson for Ester-E. Zila plans tonearly double its Ester brand marketing investment in its 2005 fiscal year overfiscal 2004, a program designed to continue the double-digit revenue increase ofEster-C and drive rapid growth of Ester-E.

Doug Burkett, chairman, chief executive officer and presidentof Zila, said, After two years of research, development and commercialscale-up activities, we began commercial shipments of Ester-E in late May. Weare pleased with initial sales at retail, especially in light of the fact thatour extensive advertising campaign has not yet begun. Ester-E has already set anew product launch sales record for Zila. In our fiscal fourth quarter, we soldessentially all of the Ester-E that we could manufacture in our first threemonths of commercial scale production. We trained new staff and added a secondshift at our manufacturing facility late in the fourth quarter to double ouroutput rate, and we will add a second Ester-E production line in fiscal 2005 toensure that our capacity keeps pace with demand.

For more information, visit www.zila.com or Booth #1754-1756at SupplySide West.