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In Eleventh-Hour Smear Attempt, Quigley Management Sacrifices Key Employee of its Pharma Division
Date:5/19/2009

WOODMERE, N.Y., May 19 /PRNewswire/ -- In an eleventh-hour attempt to smear Ted Karkus, The Quigley Corporation (Nasdaq: QGLY) has issued a press release claiming that there was some improper financial arrangement between Dr. Richard Rosenbloom, a key staff member of a subsidiary of Quigley, and Mr. Ted Karkus, who leads a group of dissident shareholders who have offered their own slate of Quigley's Board of Directors for election at the annual meeting scheduled for Wednesday, May 20, 2009.

Mr. Karkus had loaned Dr. Rosenbloom a total of $55,000 over a period of approximately six months. The loans were sought by Dr. Rosenbloom for personal purposes. They are reflected in a written promissory note that provides, appropriately, for repayment of the loan and the payment of interest, and are secured by other assets of Dr. Rosenbloom.

Mr. Karkus did not seek, nor did he receive, any "inside information" in connection with the loan or otherwise.

Mr. Karkus has stated: "I am proud to have been in a position to help out someone in need. For the Company to attempt to manufacture a scandal on the last day of voting is disgraceful. It is quite obvious that they knew about this loan before today, and for the Company to treat Richard Rosenbloom so disgracefully is truly reprehensible."

Quigley has apparently determined to suspend, and perhaps discharge, Dr. Rosenbloom as a result of his alleged failure to report the loans to the CEO, Mr. Guy Quigley. Putting aside the question of what right Mr. Guy Quigley had to demand reports of this kind, the willingness of The Quigley Corporation to sacrifice Dr. Rosenbloom in an effort to impugn Mr. Karkus must be of grave concern to all shareholders. As the Company just stated in its Form 10-K, filed on March 9, 2009:

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