Bio-Dental Technologies reports fiscal 1997 first-quarter results, return to profitability.

SACRAMENTO, Calif.--(BUSINESS WIRE)--Aug. 5, 1996--Bio-Dental Technologies Corp. (NASDAQ/NM:BDTC) Monday reported results for its fiscal 1997 first quarter, ended June 30, 1996.

For the quarter, revenues remained relatively unchanged from the same quarter last year at $8.4 million. The company reported net income of $29,412 for the first quarter, vs. a net loss of $479,441, or 7 cents per share, for the first quarter of fiscal 1996.

Curtis M. Rocca III, president and chief executive officer of Bio-Dental, said: ``We are very pleased to have returned the company to profitability in the first quarter following the restructuring of our Integrated Dental Technologies (IDT) subsidiary.

``While overall sales remained relatively unchanged for the quarter compared to last year, The Supply House generated higher volumes and improved margins, which fueled that division's increased profitability. However, the restructuring at IDT, whereby we ceased sales of lower-margin hardware and X-ray technology, caused revenues to be somewhat lower than last year.

``But even at this lower revenue level, our bottom line was vastly improved. While royalty revenues from Denticator also declined during the quarter, we received a $7.5 million cash payment in July in lieu of all future royalty payments from that operation.''

Rocca continued: ``Bio-Dental's return to profitability during the quarter, coupled with our strengthened balance sheet and the elimination of long-term debt brought about by the Denticator-related payment, leaves us optimistic about the company's current position and future prospects.''

Also during the quarter, Bio-Dental signed a letter of intent to merge with Zila Inc. (NASDAQ:ZILA) in an exchange of common stock. With headquarters in Phoenix, Zila markets a rapidly growing line of nonprescription oral health-care products and is currently marketing the first oral cancer diagnostic, OraTest, in Canada, the United Kingdom and Australia.

Zila intends to market OraTest in the United States exclusively through Bio-Dental, pending Food and Drug Administration approval. The proposed transaction, which is expected to close in the fall of 1996, calls for each share of Bio-Dental to be exchanged for between 0.75 and 0.825 shares of Zila stock.

Bio-Dental Technologies manufactures, markets and distributes dental supplies and proprietary, high-technology dental products to the $2 billion professional dental-supply market in all 50 states and Canada.

The information set forth in this news release includes forward- looking statements and references to potential future developments. Such statements and references are based upon certain assumptions, including, but not limited to, the closing of the company's merger with Zila, the successful execution of the company's restructuring plan for IDT, the growth in market demand for IDT's products and the ability of The Supply House to continue to improve sales and maintain gross margins. -0-

                    BIO-DENTAL TECHNOLOGIES CORP.
                        Financial Highlights

                                                Three months ended
                                                     June 30,
                                                 1996        1995
Revenues                                   $8,403,092  $8,420,338
Net income (loss)                          $   29,412  $ (479,441)
Income (loss) per share                       0 cents    (7 cents)
Weighted average shares outstanding         6,900,000   6,451,600

CONTACT: Bio-Dental Technologies Corp., Sacramento

Terry E. Bane, 916/638-8147

or

Silverman Heller Associates, Los Angeles

Eugene G. Heller, 310/208-2550