Maker of Zicam Achieves Triple-Digit Net Income Growth; Company Releases Details about Apparent Attempt to Devalue Stock.

Business Editors/Health/Medical Writers

PHOENIX, Ariz.--(BUSINESS WIRE)--April 28, 2004

Matrixx Initiatives, Inc., maker of Zicam(R) Cold Remedy and other products, today reported triple-digit earnings growth for the First Quarter 2004--versus the same period in 2003--during its annual meeting of shareholders. Matrixx achieved these results despite what the company believes is an apparent attempt by some in the financial industry to unfairly attack the company's products and devalue its stock.

During the annual shareholders' meeting, company executives discussed the most recent attacks, which began with a poster presentation by Bruce Jafek, MD, Rocky Mountain Taste and Smell Center at the University of Colorado Medical Center, attempting to link intranasal zinc gluconate gel--the active ingredient in Zicam Cold Remedy nasal gels--to anosmia (loss of smell). The poster was presented at a conference of the American Rhinologic Society (ARS) in September 2003. These attacks have included false and defamatory Internet postings as well as product liability litigation that focuses on the alleged link between Zicam Cold Remedy and anosmia, as described in the poster presentation.

"When we first learned of the poster presentation, we became suspicious," said Carl J. Johnson, President and Chief Executive Officer of Matrixx Initiatives, Inc. "The presentation appeared to be very unscientific, relying on a weak anecdotal case study of one patient with multiple risk factors for loss of smell. The conclusions were not supported by medical literature or the company's peer-reviewed clinical studies. In addition, the conclusions were based on studies with zinc sulfate, a completely different compound than zinc gluconate."

Matrixx recently discovered that Dr. Jafek's son "sold short" shares of the company's stock just before the presentation. Those transactions would result in a significant financial gain if the company's stock price dropped following the presentation. At the time, his son was employed in the investment community.

"We wondered why a physician would present data using such scientifically inappropriate protocols and could arrive at such unsubstantiated conclusions based on two completely different substances," said Johnson. "Loss of smell due to intranasal zinc gluconate had never been reported in any clinical research, nor were any cases of loss of smell observed in two Matrixx-sponsored peer-reviewed clinical trials with Zicam nasal gel."

Following a review of the allegations, Matrixx Initiatives, Inc., assembled an advisory panel of recognized scientific and medical experts to discuss clinical research regarding loss of smell.

"The panel was very critical of the poster presentation and generally felt that there was insufficient evidence to conclude that loss of smell could be attributed to zinc gluconate, the active ingredient in Zicam Cold Remedy intranasal gel," said Johnson. "The chairman of the scientific advisory panel forwarded a letter to the ARS citing various inadequacies with the poster presentation."

According to Johnson, Matrixx takes these attempts, as well as reports of loss of smell, very seriously.

"Matrixx' primary concern is the health and well-being of the consumers who use our products. We fully intend to continue our investigation and take appropriate action where justified," said Johnson.

About Matrixx Initiatives, Inc.

Matrixx Initiatives, Inc. is engaged in the development, manufacture and marketing of over-the-counter (OTC) pharmaceuticals, which utilize innovative drug delivery systems. Zicam, LLC, its wholly-owned subsidiary, produces, markets and sells Zicam(R) Cold Remedy nasal gel, a patented, homeopathic remedy that has been clinically proven to reduce the duration and severity of the common cold. In studies published in the October 2000 issue of ENT - Ear, Nose and Throat Journal, and separately in the January 2003 issue of QJM: An International Journal of Medicine, the Zicam Cold Remedy nasal gel product was shown to reduce the duration of the common cold. The Company also manufactures and markets a full line of Zicam brand pharmaceuticals, including Zicam Cold Remedy Swabs; Zicam Kids Size Cold Remedy Swabs; Zicam Cold Remedy Oral Mist, Zicam Cold Remedy Chewables, Zicam Cold Remedy RapidMelts, Zicam Allergy Relief, Zicam Extreme Congestion Relief; Zicam Sinus Relief; and Zicam Nasal Moisturizer. For more information regarding Matrixx products, go to www.zicam.com. To find out more about Matrixx Initiatives, Inc. (Nasdaq: MTXX), visit our website at www.matrixxinc.com.