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INSURANCE COVERAGE FOR ORASCAN TAKES EFFECT IN CANADA

 PHOENIX, Jan. 14 /PRNewswire/ -- Zila, Inc. (NASDAQ: ZILA) reports that Canadian insurance coverage has taken effect for OraScan(TM), the first oral cancer diagnostic. "This is a clear indication of the importance attached to this product by the dental profession," said Zila President Joseph Hines. "Because most dental care provided in Canada is covered by insurance, this extension of coverage to OraScan will undoubtedly contribute to greater utilization of this inexpensive and valuable test."
 The OraScan test is a quick mouthrinse sequence that enables the health professional to find cancerous lesions at their earliest, asymptomatic stage -- increasing the chance of cure with minimal discomfort and cost. This contrasts with the current average oral cancer 5-year survival rate of only 51% (18% for late-stage diagnosis) and annual treatment expenditures approaching a billion dollars in the U.S. alone.
 Zila has inaugurated a major new marketing campaign across Canada for 1994. It includes distribution to dentists of thousands of videotapes on oral cancer diagnosis with OraScan; two waves of special mailings to every Canadian dentist; advertising in professional journals; participation in dental conventions; and an intensive seminar series, particularly in the Province of Quebec. The entire campaign is buttressed by telemarketing and direct sales contact.
 Zila's Canadian program is the prototype for worldwide OraScan marketing efforts. As soon as FDA approval is obtained, the company will roll-out a U.S. campaign incorporating all the most productive components gleaned from the Canadian experience.
 Regarding OraScan's U.S. regulatory review, Hines said that "Since Zila's meeting with a senior FDA official in October, the review process has been moving in a much faster and more orderly fashion, with a checklist of issues being cleared in rapid order. This, coupled with recent reports of accelerated product clearances by the FDA, gives us considerable optimism for near-term marketing approval."
 Hines said quick action is expected in the U.K., where the entire OraScan application has been completed and filed with all fees paid. British regulators pride themselves on issuing speedy approvals. U.K. distribution arrangements are being finalized now in anticipation of early approval.
 Hines noted that clinical researchers and Canadian practitioners are producing a steady stream of very positive OraScan use reports. This is encouraging more Canadian dentists to try OraScan in their practices, and it is building international credibility and interest in the product.
 -0- 1/14/94
 /CONTACT: Joseph Hines, president of Zila, Inc., 602-266-6700/
 (ZILA)


CO: Zila, Inc. ST: Arizona IN: MTC INS SU: PDT

LD -- NY005 -- 2064 01/14/94 09:30 EST
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Date:Jan 14, 1994
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