Zila, Inc. (Nasdaq: ZILA) announced completion of the sale of its Zila Dental Supply division, with the closing of the sale of the division's mail-order operations to PracticeWares, Inc., of Sacramento, California. Zila previously announced the sale of the division's

full-service dental distribution operations to Henry Schein, Inc.

(Nasdaq: HSIC). Total gross proceeds from the two separate sales of the division's assets are approximately $13.8 million. The gross proceeds are subject to certain post-closing adjustments.

Zila President Joseph Hines reiterated that the divestiture "represents a major refocusing of Zila's strategic direction, allowing the Company to concentrate on the development and marketing of its proprietary pharmaceutical, biotechnology and nutraceutical products."

/CONTACT: Joseph Hines of Zila, Inc., +1-602-266-6700/

/Web site: http://www.zila.com /

(ZILA HSIC)