Zila to Market Swab Version of OraTest Product / Scheduled to Join Rinse Version in China in January 2000

London (PROTEXT) - Zila Europe, a division of Zila, Inc. (Nasdaq: ZILA), international provider of healthcare products for dental/medical professionals and consumers, announced that it will introduce new OraTest(R) Swab, a variation of Zila's OraTest(R) patented oral cancer detection product, at Asian Dentech 2000, a major trade show in Hong Kong, China, January 27- 30, 2000. The new OraTest Swab product allows full-mouth swabbing or selected application ("painting") of Zila(R) Tolonium Chloride on suspicious sites. The original OraTest product incorporates a series of oral rinse solutions to enhance the visualization of abnormal tissue. The product's active ingredient, Zila Tolonium Chloride, stains suspicious tissue blue, for easy identification. Pre- and post- rinse solutions of one percent acetic acid improve visualization. An OraTest kit, consisting of three bottles of rinse solutions, an oversize bib, cups, oral cavity chart and directions for use, is intended for a single patient application and costs dentists in the United Kingdom #16.20, or about US$26. The single-use OraTest Swab product consists of three cotton- tipped swabs, each individually packaged in a plastic snap-open tube. Swab one is pre-moistened with the OraTest pre-rinse solution; swab two with Zila Tolonium Chloride solution; and swab three with a post-rinse solution. The OraTest Swab product is expected to cost dentists up to 50 percent less than the original OraTest rinse product. The OraTest Swab packaging concept is the same one used by the Company for its recently-launched and very successful Zilactin(R) Toothache Swabs. Because healthcare professionals sometimes prefer one application technique over the other based on training, patient condition or cost, Zila will offer both the new swab and the original rinse product in global markets where they are approved for use. Zila Biomedical President Ralph Green, DDS, said the Company shipped 20,000 original OraTest packages to China in November. "We are now working with multiple distributors, targeting a greatly expanded territory that includes a larger population than would have been available working exclusively with Shanghai Hunting, our original distributor. Unanticipated Chinese taxes, including excessively high import custom charges on our more expensive rinse package, increased the cost of that package to a restrictive level relative to the Chinese market. This makes it impossible for Shanghai Hunting to meet quantities specified in their contract, voiding that agreement. "Zila has responded to the cost issue by introducing the alternative swab package and, with several additional distributors, marketing to a much broader segment of the Chinese population," Dr. Green added. "This lower cost delivery system should allow Zila to achieve aggressive revenue targets, and it should improve the acceptability of the OraTest system in Third World regions as well." 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. These include possible political, economic or contractual complications involved in foreign business dealings. 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. ots Original Text Service: Zila Europe Internet: http://www.newsaktuell.de Contact: In UK, Adrian Webber, 01722 412312, or In US, Dr. Ralph Green, (USA) 602-266- 6700, both for Zila Europe Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT