Zila Receives Nasdaq Notice Letter

  
    
  
  
    
      Zila, Inc. (NASDAQ:ZILAD) today announced that it received a Nasdaq 
      Staff Determination Letter on September 22, 2008 informing the company 
      that it is subject to delisting based upon the company's failure to 
      comply with Marketplace Rules 4450(a)(5) and 4350.
    
    
      In accordance with Marketplace Rule 4450(e)(2), the company was given 
      until September 16, 2008 to achieve a closing bid price of the company�s 
      common stock of $1.00 per share or more for a minimum of 10 consecutive 
      business days. Zila has effectuated a 1 for 7 reverse stock split, which 
      took effect on September 17, 2008. As of the close of trading today, the 
      closing bid price of the company�s stock has 
      been above $1.00 per share for eight consecutive days. If the closing 
      bid price of the company�s common stock is 
      above $1.00 per share for the next two business days, the company will 
      regain compliance with Marketplace Rule 4450(a)(5).
    
    
      Consistent with Marketplace Rule 4350(d)(4) the company has until the 
      earlier of its next annual shareholders� 
      meeting or December 17, 2008 to name a third director as a member of the 
      Audit Committee so that the company regains compliance with the 
      requirements of Marketplace Rule 4350. The company said that it expects 
      to fill the Audit Committee vacancy within the timeframe required by the 
      Nasdaq Marketplace Rules.
    
    
      About Zila, Inc.
    
    
      Zila, Inc., is a fully integrated oral diagnostic company dedicated to 
      the prevention, detection and treatment of oral cancer and periodontal 
      disease. ViziLite� 
      Plus, the company's flagship product for the early detection of oral 
      abnormalities that could lead to cancer, is the first and only 
      adjunctive medical device cleared by the FDA for use in a population at 
      increased risk for oral cancer. In addition, Zila designs, manufactures 
      and markets a suite of proprietary products sold exclusively and 
      directly to dental professionals for periodontal disease, including the 
      Rota-dent(R) Professional Powered Brush, the Pro-Select(R) Platinum 
      ultrasonic scaler and a portfolio of oral pharmaceutical products for 
      both in-office and home-care use.
    
    
      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 affect revenue, profitability, cash flows and capital 
      needs. 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 for its fiscal year ended July 31, 2007 and Form 10-Q for the 
      quarter ended April 30, 2008.
    
    
      For more information about the company and its products, please visit www.zila.com.