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Dissident Stockholder Ted Karkus Found to Have Undisclosed Financial Arrangements With Dr. Richard A. Rosenbloom, COO Of Quigley Pharma, From 2008 to Date of Proxy: Rosenbloom Suspended Without Pay Pending Further Investigation
Date:5/19/2009

DOYLESTOWN, Pa., May 19 /PRNewswire-FirstCall/ -- The Quigley Corporation, (Nasdaq: QGLY), www.quigleyco.com, today announced that it has uncovered an improper financial relationship between Ted Karkus and the Company's Quigley Pharma, Inc. wholly-owned subsidiary COO, Dr. Richard A. Rosenbloom. The Company has come into possession of documentary evidence of undisclosed payments from Karkus to Rosenbloom continuing at least since 2008.

The Company is investigating as to whether any material non-public information was communicated from Rosenbloom to Karkus.

In April of 2008, Karkus solicited Charles Phillips, COO of The Quigley Corporation since 1989, to join him and others in a proxy fight to unseat the Management and Board of The Quigley Corporation. Phillips rejected the Karkus proposal. Shortly after this rejection, Karkus entered into a financial arrangement with Rosenbloom.

In a case brought by the Company in the Eastern District Court of Pennsylvania against Karkus and his slate of proposed directors, Karkus answered under oath "no" in his deposition when asked if he had any financial or other arrangements with any member of The Quigley Corporation's staff.

All employees of The Quigley Corporation received a notice in May of 2008 requiring that any contact with any shareholder be communicated to Management and memorialized. On April 13, 2009 the Company sent the same notice to all employees asking for written responses. Dr. Rosenbloom stated that he had no contact with any shareholder and, in particular, had no contact with Ted Karkus.

Guy J. Quigley, Chairman, President and Chief Executive Officer of The Quigley Corporation, stated, "On two separate occasions I contacted the
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SOURCE The Quigley Corporation
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