Zila, Inc. (NASDAQ:ZILA) today announced that its application to transfer the listing of its common stock from The NASDAQ Global Market to The NASDAQ Capital Market has been approved. The transfer will be effective at the opening of business on April 13, 2009 and the company�s common stock will continue to trade under the symbol �ZILA.� The transfer to the Capital Market allows the company to continue its NASDAQ listing status.

The NASDAQ Capital Market is a tier of the NASDAQ Stock Market for companies with a lower market capitalization requirement than the Global Market tier. It is a continuous trading market that operates in the same manner as The NASDAQ Global Market and currently lists the securities of approximately 550 companies. All companies listed on The NASDAQ Capital Market must meet certain financial requirements and adhere to NASDAQ's corporate governance standards.

As previously disclosed on March 26, 2009, Zila received notice from the NASDAQ Stock Market that it had determined that the Company does not currently meet the minimum $10,000,000 in stockholder equity required for continued listing for NASDAQ Global Market. While the NASDAQ Stock Market has offered the Company the opportunity to submit a plan for regaining compliance with this requirement, the Company determined to proceed with a transfer of its listing to The NASDAQ Capital Market to maintain an orderly market in its common stock through the current global economic crisis. The stockholder equity requirement for The NASDAQ Capital Market is $2,500,000.

About Zila, Inc.

Zila, Inc., headquartered in Scottsdale, Arizona, is a diagnostic company dedicated to the prevention, detection and treatment of oral cancer and periodontal disease. Zila manufactures and markets ViziLite� Plus with TBlue� (�ViziLite� Plus�), the company�s flagship product for the early detection of oral abnormalities that could lead to cancer. ViziLite� Plus is an 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 Rotadent� Professional Powered Brush, the Pro-Select Platinum� ultrasonic scaler and a portfolio of oral pharmaceutical products for both in-office and home-care use. All of Zila�s products are marketed and sold in the United States and Canada primarily through the company�s direct field sales force and telemarketing organization. The company�s products are marketed and sold in other international markets through the direct sales forces of third party distributors. Zila�s marketing programs reach most U.S. dental offices.

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, 2008 and Form 10-Q for the quarter ended January 31, 2009.

For more information about the company and its products, please visit www.zila.com.

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