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Zila Enters into Merger Agreement with Tolmar
Zila, 06/26/09

Zila, Inc. announced that it has entered into a definitive merger agreement with Tolmar Holding, Inc., a privately held, pharmaceutical research, development, manufacturing and commercial operations company. Under terms of the agreement, Tolmar will acquire all of the outstanding shares of Zila for a cash purchase price of $0.38 per share, representing an approximate premium of 18% over the closing price of Zila's shares on June 2009. Total consideration paid by Tolmar includes the purchase of Zila's existing $12 million senior secured convertible debt at a discount.

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