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The Quigley Corporation Reports Fourth Quarter and 2008 Annual Results; Continues To Invest In Pharmaceutical R&D Future
Date:2/26/2009

0) per share compared to a loss of $1.9 million, or ($0.14) per share for 2007.

The loss from continuing operations for the fourth quarter and twelve months of 2008 reflect the aforementioned reduction in net sales and an increase in cost of sales, thereby reducing gross margin for the periods. The 2008 cost of sales also reflects costs of approximately $300,000 associated with the write-down in the value of fixed assets and excess inventory at the Elizabethtown, Pennsylvania manufacturing location. This facility is in the process of being closed due to the consolidation of manufacturing operations in 2009. This location has been primarily involved in the manufacture of hard candy and the closure of that facility will not impact the production and distribution of the COLD-EEZE(R) brand of products which is manufactured at the Company's Lebanon, Pennsylvania manufacturing facility. The shortfall in gross margin was offset by a reduction in overall operating expenses of $1.1 million in the fourth quarter of 2008 and $3.0 million for the full year, compared to the respective 2007 periods.

The Company continued to invest in Quigley Pharma, a wholly owned Ethical Pharmaceutical subsidiary developing natural-source potential prescription and other products. Research and development costs associated with Quigley Pharma for 2008 were $4.3 million, a reduction of approximately $2.2 million, from $6.5 million in 2007.

No tax provision or benefits to reduce losses are provided for the quarter and twelve month periods ended December 31, 2008 and 2007, since the Company is in a net operating loss carry-forward position for which a valuation has been established.

In March 2008, The Quigley Corporation completed the sale of its wholly owned subsidiary, Darius International Inc. ("Darius"), which constituted the Health and Wellness segment, to InnerLight Holdings, Inc. Net loss of the Company for the twel
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