DISCUS DENTAL, LLC (A PHILIPS COMPANY) DIVESTS LASER, ZEN, AND INSIGHT PRODUCTS TO ZILA, INC.

April 3, 2012

We are pleased to announce that Zila, Inc. has acquired the Laser, Zen, and Insight product portfolios from Discus Dental, LLC (A Philips Company). This includes: NV^TM, SLP^TM, and SL3^TM lasers, Zen^TM cordless prophy and Insight^® ultrasonic inserts. The addition of these products strengthen and support Zila's proprietary Soft Tissue Management^® production portfolio, which includes Rotadent^® professional rotary toothbrushes, ViziLite^® Plus oral lesion identification & marking system, ATRIDOX^® locally applied antibiotic and Pro-Select Platinum^® piezo ultrasonic scaler.

Philips Oral Healthcare will continue to support dental professionals through its category leading whitening and oral hygiene line-up including Zoom^®, DayWhite^®, NiteWhite^® and BriteSmile^® tooth whitening solutions, Sonicare^® power toothbrushes, Fluoridex^® fluoride toothpaste, PerioRx^® chlorhexidine rinse, Relief^® ACP gel and BreathRx^®.

In the following weeks Zila and Discus Dental will work together to transition all Laser, Zen, and Insight operations into Zila's manufacturing and distribution facilities in Batesville, Arkansas.

Be assured that both companies are committed to make this transition as seamless as possible. Questions and answers are provided below. If there is a question we have not addressed, please feel free to contact either company using the contact information provided below.

Sincerely,

Frank McGillin General Manager, Discus Dental, LLC Vice President, Philips Consumer Lifestyle

David R. Speights CEO, Zila, Inc.

Contact Information:

Philips Oral Healthcare: (310) 845-8600

Zila, Inc: (800) 228-5595

ANSWERS to commonly asked questions

• What products are being sold to Zila?
  • Zila has acquired the Discus Dental Laser, Zen, and Insight portfolio. This includes: NV^TM, SLP^TM, and SL3^TM lasers, Zen^TM cordless prophy and Insight^® ultrasonic inserts.

• When will this transition begin and how long is it expected to last?
  • During April, responsibility for the sale and distribution of these products will transition from Discus Dental to Zila. In the near-term, all sales and customer service functions will remain with Discus Dental. On or before April 16^th, you wil be able to begin purchasing all of these products exclusively from Zila.

• When I need to place my next order, how will I know which company to contact?
  • New orders can be placed the same way they are today, through the Discus Dental Call Center. On or before April 16^th, any calls coming into Discus Dental for Lasers, Zen or Insight will be taken by a Discus Dental representative for a price quote and shipping. All of the orders will be forwarded to Zila Customer Care for invoicing. After April 16^th, you will be able to dial Zila Customer Care directly at 1-800-228-5595, option #2 to place orders for the above mentioned products.

• Will the current Discus Dental part numbers (SKU's) remain the same or will they be changed to a Zila numbering system? If a change will be made, how will I be notified?
  • Zila intends to maintain the current part numbers for the foreseeable future.

• What affect will this change have on the timing of delivery of products that I have currently on order with Discus Dental? What about those ordered in the near future?
  • Orders taken after the divestment that were placed with Discus Dental before April 16^th, will be shipped from Discus Dental.
  • New orders placed with Zila on or about April 16^th, will ship from the Zila distribution center in Batesville, Arkansas.

• If I have a warranty issue or return already in progress, how will this be handled? For issues and returns on products that I had previously purchased from Discus Dental, which company should I contact?
  • Zila will honor all product warranties and returns for products sold prior to the transfer of the Laser, Zen & Insight business from Discus Dental.
  • Zila Customer Care can be reached at 1-800-228-5595, press option #2.

• Will Discus Dental's return and warranty terms and conditions be honored by Zila or will the products that I previously purchased from Discus Dental be transferred to the terms and conditions of Zila policies? What are the terms and conditions of Zila's warranty and return policies?
  • Zila will honor the warranties of all products sold by Discus Dental (A Philips Company).

• Will the price of any of the Laser, Zen or Insight products change in the near future?
  • Zila will continue selling all products at the same prices subject to Zila's customary price review from time-to-time.

• Will any Laser, Zen or Insight products be discontinued or changed? If so, how much notice will be given before a product change or discontinuation takes place?
  • Most, if not all, of the products will continue to be available. At this point, Zila does not have any plans to discontinue any of the products being acquired from Discus Dental (A Philips Company).
  • Zila is committed to maintaining continuity of product quality and will be utilizing the same materials, quality standards, manufacturing practices, suppliers and even the same equipment, to produce these fine products.

• Will I need to set up a new account with Zila or will my Discus Dental account be transferred?
  • Yes, you will need to set up a new account if you do not currently have an account with Zila.
  • Your Zila sales representative will assist you with account set-up, which is a quick and simple procedure.