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The Quigley Corporation Reports Third Quarter Results, Increases Investment in Pharmaceutical R&D for Diabetic Neuropathy
Date:10/25/2007

8 million and $3.9 million, respectively, for the third quarter and nine-months ended September 30, 2007 as a reduction in the number of active independent distributor representatives reflects the effects of ongoing litigation, which the Company is vigorously pursuing with the sponsor of the Company's product line in this segment. Corrective actions continue to be taken to resolve the litigation and increase the number of active independent distributor representatives as part of strategic efforts with the goal to increase sales and return to profitability.

No tax provision or benefits, to reduce losses, are provided for the quarter and nine-months ended September 30, 2007 and 2006, except for any requirements imposed by the federal alternative minimum taxes or for compliance with state tax regulations, since the Company is in a net operating loss carry-forward position.

The research by the Company is part of its strategic initiatives to generate future growth. These initiatives include capitalizing on the growth potential of Quigley Pharma, a wholly-owned Ethical Pharmaceutical subsidiary, by developing natural-source potential prescription products for Systemic Radiation, Rheumatoid Arthritis, Avian Flu in animals and particularly, Diabetic Peripheral Neuropathy.

During the third quarter of 2007, a human safety study was undertaken to investigate the effects of QR-449, a broad spectrum anti-inflammatory compound, on patients suffering from Metabolic Syndrome, a condition which inhibits normal metabolic processes. Metabolic Syndrome sufferers are vulnerable to dangerous heart attack risk factors including diabetes, abdominal obesity, high cholesterol and high blood pressure. Inflammation plays a major role in this condition as well as Rheumatoid Arthritis, Cancer and Cachexia.

The primary objectives for the study are the determination of safety and to measure the corrective capacity of the compound on the imbalance of important anti-oxidant,
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SOURCE The Quigley Corporation
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