The Quigley Corporation (Nasdaq: QGLY) reported Revenues for the fourth Quarter

DOYLESTOWN, Pa., Feb. 19 --
The Quigley Corporation (Nasdaq: QGLY) today reported Revenues for the fourth
quarter and year ended December 31, 2001 were $8.5 million and $24.7 million,
respectively.  Revenues for comparable periods in 2000 were $7.1 million and
$16.8 million.
    The Company's net income for the fourth quarter 2001 was $986,000, or $.09
per share, compared to a net income of $265,000, or $.03 per share for the
fourth quarter of 2000.  Net income for the year ended December 31, 2001 was
$216,000, or $.02 per share, compared to a net loss of $5.2 million, or
($.49) per share for 2000.
    Guy J. Quigley, President, Chairman and Chief Executive Officer, said,
"While we will not be satisfied until we return to consistent profitability,
the 2001 turnaround was evident.  Going forward, we are poised to produce
steady sales growth for the Cold-Eeze brand through stronger marketing of our
traditional lozenge as well as a host of exciting, effective brand extensions
such as new Cold-Eeze(R) Cinnamon Gum, Cold-Eeze Sugar-Free Tablets, and a new
honey lemon lozenge to be launched in the next upcoming cold season."
    "A long-term priority of The Quigley Corporation is Quigley Pharma - which
already has an array of groundbreaking patent applications and is taking the
necessary actions to meet all Federal Food and Drug Administration legal and
procedural obligations."  Mr. Quigley concluded, "In sum, the Company made
major progress in 2001 towards regaining and maintaining profitability as well
as initiating an exciting new engine of future revenue in Quigley Pharma."
    The revenues reported for 2001 and 2000 reflect a change in Accounting
Principles Generally Accepted in the United States of America (US GAAP) that
the Company adopted in the first quarter of 2001 by which certain co-operative
advertising promotions are reported as a reduction of sales rather than as a
marketing expense as in previous years.
    The 2001 profit compared to the loss for the same period in 2000 reflects
the Company's decision to shift its emphasis from previous broad-based media
campaigns to an efficient marketing program designed to build Cold-Eeze
awareness and usage, as well as net revenues approximating $700,000 from
settled litigation.
    No tax expense or tax benefit is provided for both the fourth quarter and
the year ended results of December 31, 2001 and 2000, since the Company is in
a net operating loss carry-forward position, which began in the fourth quarter
of 1999, resulting from the cumulative effect of deductions attributed to
options, warrants and unrestricted stock from previous years' taxable income.
    The Quigley Corporation cited several key accomplishments for 2001:
      -- An aggressive company-directed integrated marketing and sales effort
         including a special promotional campaign through national drug,
         supermarket and mass merchandise retail outlets; the introduction of
         new Cold-Eeze products; an extensive awareness and sampling campaign
         for health care professionals; and the launch of a national consumer
         media public relations effort.
      -- Winning a gross settlement in excess of $1.6 million in its patent
         infringement suit against Gel Tech, LLC and Gum Tech International,
         Inc.  Under the agreement, Gum Tech will pay The Quigley Corporation
         $1,137,500 for a limited license for Quigley's patent on the use of
         zinc gluconate for the treatment of the duration and symptoms of the
         common cold.  Gum Tech is also required to pay The Quigley
         Corporation an ongoing royalty of 5.5 percent from April 1, 2001
         through March 5, 2002 on all Zicam cold relief sales.  In addition,
         Gum Tech has guaranteed to pay Quigley a minimum of $500,000 in
         ongoing royalties regardless of sales through March 5, 2002.
      -- The Company formed Quigley Pharma Inc. in January 2001 to introduce
         an upcoming line of prescription products.
      -- The assignment to the Company of a Patent Application for the "Method
         and Composition for the Topical Treatment of Diabetic Neuropathy," a
         new formulation for relief of diabetes-related pain - the first of
         several products that will be submitted to the FDA for approval.
      -- A second patent filing for a prescription product to relieve
         sialorrhea (drooling) in patients suffering from Amyotrophic Lateral
         Sclerosis (ALS), otherwise known as Lou Gehrig's Disease.
      -- "Method and Composition for Prevention, Reduction and Treatment of
         Radiation Dermatitis," a potential product to relieve the effects of
         radiation dermatitis.  This patent application was assigned to the
         Company in November 2001.
         Many individuals are exposed to radiation for therapeutic
         purposes, the nature of their jobs or due to diagnostic
         techniques or procedures such as fluoroscopy.  These exposures
         often cause skin reactions, which range from irritating to
    The Quigley Corporation (Nasdaq: QGLY) is a leading developer and marketer
of diversified health products including the Cold-Eeze(R) family of patented
zinc gluconate glycine (ZIGG(TM)) lozenges, gums and sugar free tablets.
Cold-Eeze is the only (ZIGG(TM)) lozenge proven in two double-blind studies to
reduce the duration of the common cold from 7.6 to 4.4 days or by 42%.  In
addition to Over-The-Counter (OTC) products, the Company has formed Quigley
Pharma Inc. (, a wholly owned ethical pharmaceutical
subsidiary, to introduce a line of patented prescription drugs.  The Quigley
Corporation's customers include leading national wholesalers and distributors,
as well as independent and chain food, drug and mass merchandise stores and
    Certain statements in this press release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 and
involve known and unknown risk, uncertainties and other factors that may cause
the Company's actual results, performance or achievements to be materially
different from the results, performance or achievements expressed or implied
by the forward-looking statement.  Factors that impact such forward-looking
statements include, among others, changes in worldwide general economic
conditions, changes in interest rates, government regulations, and worldwide
     Statements of Operations
     The following represents condensed financial data (in thousands, except
diluted earnings (loss) per share and diluted common shares) for the
three-months and year ended December 31:
                         Three-Months  Three-Months   Year Ended   Year Ended
                            12/31/01     12/31/00     12/31/01      12/31/00
                              ($)           ($)          ($)           ($)
    Revenues                 8,529         7,106       24,670        16,805
    Gross profit             5,278         5,100       15,055        10,921
    Sales & marketing
     expenses                1,511         2,696        5,773         9,453
    Administrative expenses  2,527         1,868        8,376         6,217
    Research & development     361           500        1,332         1,186
    Interest & other income     55           168          405           647
    Income taxes (Benefit)       -             -            -             -
    Minority interest in loss
     of subsidiary             (52)          (61)        (237)          (92)
    Net income (Loss)          986           265          216        (5,196)
      Diluted earnings (loss)
       per share:             $.09          $.03         $.02         ($.49)
      Diluted weighted
       average common
       shares:          10,777,192    10,655,153   10,750,687    10,551,027
     Balance Sheets
     The following represents condensed financial data (in thousands) at
December 31:
                                                       2001           2000
                                                        ($)           ($)
    Cash & cash equivalents                            9,741         11,366
    Accounts receivable, net                           4,425          4,063
    Inventory                                          6,508          6,918
    Total current assets                              22,181         23,470
    Total assets                                      24,756         26,056
    Total current liabilities                          3,556          4,848
    Total stockholders' equity                        21,200         20,971
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