We achieved higher gross
margins of 73% during the second quarter of 2005, up from 68% in the second
quarter of 2004; year-to-date gross margins for 2005 have risen to 72%, versus
68% for the first six months of 2004.matrixxinc .
Carl Johnson, President and Chief Executive Officer, said, "Nasal Comfort
is a unique product for people interested in healthier breathing in general,
and those susceptible to nasal congestion , irritation, or dryness associated
with asthma, sinusitis, and allergies.2 million recorded in 2004 .
(Nasdaq: http://www.com, 480-675-0400. These forward-looking statements are
based on the Company 's current expectations and are subject to a number of
risks and uncertainties, many of which cannot be predicted or quantified and
are beyond the Company's control. Interested parties should login
15 minutes prior to the event to register and to install Windows Media Player
if necessary.

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Matrixx Initiatives Inc. Reports 84% Increase in Second Quarter Sales

com. The words "believe,"
"expect ," "plan," "anticipate," "support," "will," and other similar
statements of expectation identify forward -looking statements and include
statements regarding: (i) our anticipation of initial sales and shipments of
Nasal Comfort beginning in the second quarter of 2005; (ii) our belief about
2005 and the planned introduction of product improvements, new products, and a
new brand; (iii) the leveraging of our experience to position the brand;
(iv) our expectations that net sales will increase 25-30% and net income will
grow 10-20% in 2005 over 2004; (v) our expectations that the rate of net
income growth may slow; (vi) our expectations regarding levels of research and
development, legal, and marketing expenses in 2005; and (vii) our belief that
the Company's actions will propel sales in future years and position the
Company for sales and earnings growth. A replay of the presentation will be archived at the same web
site address for 30 days. Zicam, LLC, its wholly-owned subsidiary, produces, markets
and sells Zicam(R) products in the cough and cold category; and recently
launched a new brand , Nasal Comfort(TM), for nasal health. For more information
regarding Matrixx products, go to http: //www. Matrixx is located at 4742 N.

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3 million in net sales for the first half
of 2004. Sales of our cough products, which were not in
distribution during the first half of 2004, accounted for approximately 10% of
our net sales for the first six months of 2005.4 million due
to the operating loss experienced during the second quarter. EDT
to discuss second quarter financial results and answer questions.

is engaged in the development, manufacture and
marketing of over-the-counter pharmaceuticals, which utilize innovative drug
delivery systems.Zicam.com.

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1 million ($3.4 million for
expected and actual reimbursement of legal expenditures) compared to
approximately $1.5 9. To find
out more about Matrixx Initiatives, Inc (Nasdaq: MTXX), visit our website at
http://www.

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04
per share, versus a net loss of approximately $(393,000), or $(0.com, for 30 days. The Company's
flagship product Zicam Cold Remedy nasal gel, is a patented, homeopathic
remedy that has been clinically proven to reduce the duration and severity of
the common cold. Company Provides Revenue and Earnings Guidance for 2005

PHOENIX, Matrixx Initiatives, Inc. We are committed to supporting the new brand , Nasal
Comfort; increasing sales of Zicam products within all three of the market
groups (cold , allergy/sinus, and cough); and building a pipeline of new
products.

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(Nasdaq: MTXX), a high growth , over-the-counter healthcare company that
develops and markets products that provide consumers with "better ways to get
better," today announced financial results for the second quarter and six-
month period ended June 30, 2005.05) $ (0.10) $0. In July 2004, Matrixx began distributing
six new Cough Mist(TM) products for the 2004-2005 cough/cold season.

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For the second quarter, revenue increased
84% to approximately $6. We look forward to initial shipments of our new Zicam
products, Zicam Cold and Flu Relief as well as Zicam Cough Mist Max, in the
third quarter, along with the launch of our new brand, Nasal Comfort(TM),
designed to help maintain the critical functions of the nasal cavity and its
role in the respiratory process. For the first six months of 2005, sales of cold products
increased 21% and sales of allergy/sinus products increased 12% compared to
the first six months of 2004. The Company also manufactures and
markets a full line of Zicam brand pharmaceuticals, including Zicam Cold
Remedy Chewables(TM); Zicam Cold Remedy Oral Mist(TM); Zicam Cold Remedy
RapidMelts (R); Zicam Allergy Relief; Zicam Cold Remedy Swabs(TM); Zicam Kids
Size Cold Remedy Swabs(TM); Zicam Extreme Congestion Relief; Zicam Sinus
Relief; Zicam Nasal Moisturizer, as well as six Zicam Cough Mist(TM) products. For additional information, contact William Hemelt, Chief
Financial Officer, 602 -385-8888, whemelt@matrixxinc. Forward-Looking Statement Disclaimer:
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Nasal Comfort is a new alternative to
help improve the critical functions of the nose.
The Company will be presenting at 9:30 a.

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5 9.7 9.
The initial offering under Matrixx's new brand, Nasal Comfort(TM), is a
unique product designed to improve the critical functions of the nasal cavity
and its role in the respiratory process. In 2004, Matrixx earned $0.

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1 million in the second
quarter of 2004. The Company anticipates initial sales and shipments will begin
in the second quarter of 2005."
Matrixx also announced expectations for 2005.
Matrixx Initiatives , Inc.zicam. 24th Street,
Suite 455, Phoenix, Arizona 85016.

Matrixx Initiatives Inc. to Present at the Roth Capital Partners 18th Annual Growth Stock Conference

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04)
Average Shares
Outstanding (mil) 9.5


Selected Balance Sheet Information

($000s) June 30, 2005 Dec.

About Matrixx Initiatives, Inc. is engaged in the development , manufacture and
marketing of over-the-counter (OTC) pharmaceuticals, which utilize innovative
drug delivery systems.com or Institutional Investors, Max Ramras at The RCG Group,
max@thercggroup.m.

is engaged in the development, manufacture and
marketing of over-the-counter healthcare products that utilize innovative drug
delivery systems. In studies published in the October 2000 issue of ENT --
Ear, Nose and Throat Journal, and separately in the January 2003 issue of
QJM: An International Journal of Medicine, the Zicam Cold Remedy product was
shown to reduce the duration of the common cold.

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Net income and earnings per share for the
first six months of 2005 reflect actual and expected reimbursement of
$1.5 million in the first half of 2004.m.matrixxinc.com. To find out more about Matrixx Initiatives, Inc.com, or Bill Barba, investor relations, at 602-385-8881,
bbarba@matrixxinc .

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Retail acceptance of our new products has
been very encouraging, with all of our top ten retailers planning to add new
products. To access
the teleconference, please call (877) 356-5706 (domestic ) or (706) 643-0580
(international). To listen to the teleconference via the Internet, log onto
http: //www.

Zicam, LLC, its wholly-owned subsidiary, produces,
markets and sells Zicam(R) Cold Remedy nasal gel, a patented, homeopathic
remedy that has been clinically proven to reduce the duration and severity of
the common cold. We do
not undertake, and we specifically disclaim, any obligation to publicly update
or revise any forward-looking statement whether as a result of new
information, future events or otherwise. To find out more about
Matrixx Initiatives, Inc (Nasdaq: MTXX), visit our website at
http://www.

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Johnson, President and Chief Executive Officer of Matrixx
Initiatives, said, "We continue to be excited about the growth of the Zicam
brand. We continue to expect that we will achieve our previously released
guidance for 2005 of a 25-35% growth in revenue and a 10-20% increase in net
income compared to 2004. Hemelt continued, "Operating expenses continue to be negatively
impacted by legal expense. For the first six months of 2005, net legal expense was
$2.com. The new product will be packaged in a
pharmaceutical grade dispenser, employing a patented one-way, micro-filtration
pump. Overall, consumers found Nasal Comfort extremely
unique and purchase intent was very high. Other factors that could cause actual
results to differ materially from the Company's expectations are described in
the Company's Annual Report on Form 10-K filed in March 2004 and the Company's
Quarterly Report on Form 10-Q filed in November 2004, under the heading "Risk
Factors", both filed pursuant to the Securities Exchange Act of 1934.matrixxinc.

About Matrixx Initiatives, Inc.com. A concentrated, two-day program will allow institutional investors
to meet the executives from a select group of companies that have been hand
picked by the Roth Capital Partners research team.

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4 million in
the second quarter of 2004.05) per share, compared to a net
loss of approximately $(989,000), or $(0.2 million, or 30% above the $16.
Carl J.
Matrixx Initiatives, Inc. For additional
information, contact William Hemelt, chief financial officer, 602-385-8888,
whemelt@matrixxinc. The Company's
flagship product, Zicam Cold Remedy nasal gel, is a patented, homeopathic
remedy that has been clinically proven to reduce the duration and severity of
the common cold.com.

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com and click on the second quarter 2005 teleconference
icon . Matrixx is located
at 4742 N.

Matrixx Initiatives Inc. Introduces Nasal Comfort(TM) a New Brand and Product for Enhancing Respiratory Health

(Nasdaq: MTXX), a rapidly growing innovator in the development and marketing
of branded over-the-counter pharmaceuticals, today announced a new brand and
product line. The
Company also expects net income will grow 10-20% above the level realized in
2004.
Matrixx Initiatives, Inc.rothcp.

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Year-To-Date Revenue Increased 30% to $21 Million and Net Income Up

PHOENIX, Matrixx Initiatives, Inc. We expect to recognize
additional reimbursements from our insurance carriers for a portion of the
legal expense incurred in subsequent periods.

Matrixx Initiatives, Inc. Johnson continued, "Nasal Comfort is a great opportunity for the
Company. The new brand continues our vision of employing unique delivery
systems to help improve the lives of consumers. We believe 2005 will be an exciting year as we launch a
new brand and concept, introduce new Zicam products, and make improvements to
our existing product line.
According to William Hemelt, Executive Vice President and Chief Financial
Officer, "As discussed previously, in 2005 we anticipate increased investment
in research + development and marketing, along with a continued high level of
legal expense, will slow the rate of net income growth compared to the growth
rates in prior years.

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"
William Hemelt, Executive Vice President and Chief Financial Officer,
stated, "Net sales were favorably impacted by the Company's sales growth among
all product groups. The words
"believe," "expect," "plan," "anticipate," and other similar statements of
expectation identify forward-looking statements and include statements
regarding: (i) our expectation regarding reimbursement for legal expense from
our insurance carriers; (ii) our expectation of using new advertising to
attract new users to Zicam; (iii) our expectations regarding the introduction
of new products and a new brand, Nasal Comfort, in the third quarter of 2005;
(iv) our belief in achieving revenue and income guidance for 2005; and (v) our
expectation of increased sales in the third and fourth quarters."
Mr."

About Matrixx Initiatives, Inc.com.

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Our cash position decreased to approximately $13.
For more information regarding Matrixx products, go to http://www.zicam.52 per share.matrixxinc.

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3 million compared to approximately $3.
For the first half of 2005, revenues increased to approximately
$21. Johnson continued, "We remain focused on growing the existing business
and introducing new products. Net legal expense was approximately $819,000
($1. 31, 2004 June 30, 2004
Cash and Marketable
Securities $13,431 $12,694 $4,502
Accounts Receivable -
Trade $4,127 $12,386 $1,841
Inventory $7,337 $7,241 $7,710
Restricted Cash $5,000 $5,000 $5,014
Total Assets $53,951 $60,134 $44,994
Current Liabilities $8,137 $15 ,091 $6,361
Working Capital $23,800 $23,205 $12,483
Total Debt $0 $0 $0
Shareholders' Equity $44,897 $44,126 $38,633

There will be a teleconference Wednesday , July 27, 2005 at 11:00 a.com, or Bill Barba,
Manager of Investor Relations, 602-385-8881, bbarba@matrixxinc . Factors that
could cause actual results to differ materially from the Company's
expectations include the severity of the next cold season, the possibility
that future sales of Zicam products will not be as strong as expected, the
possibility that supply issues may impact future sales of Zicam products, the
possibility that the Company's products may face increased competition or
negative publicity, the potential impact of current and future product
liability litigation, regulatory issues , or public relations challenges, the
possibility of delays or other difficulties in implementing new product
improvements and introducing to the marketplace new products and brands; and
the possibility that expenses, including legal expenses, may exceed budgeted
amounts. We believe all of these actions will propel sales in future years
and position the Company for ongoing sales and earnings growth . The Company also manufactures and
markets a full line of Zicam brand pharmaceuticals, including Zicam Cold
Remedy Chewables(TM); Zicam Cold Remedy Oral Mist(TM); Zicam Cold Remedy
RapidMelts (TM); Zicam Allergy Relief; Zicam Cold Remedy Swabs(TM); Zicam Kids
Size Cold Remedy Swabs(TM); Zicam Extreme Congestion Relief; Zicam Sinus
Relief; and Zicam Nasal Moisturizer. For more information regarding Matrixx products,
go to http://www. Matrixx is located at 4742 N. Forward-Looking Statement Disclaimer:
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.

PHOENIX, Matrixx Initiatives, Inc . The Company also
manufactures and markets a full line of Zicam brand pharmaceuticals, including
Zicam Cold Remedy Chewables(TM); Zicam Cold Remedy Oral Mist(TM); Zicam Cold
Remedy RapidMelts (TM); Zicam Allergy Relief; Zicam Cold Remedy Swabs(TM);
Zicam Kids Size Cold Remedy Swabs(TM); Zicam Extreme Congestion Relief; Zicam
Sinus Relief; Zicam Nasal Moisturizer, as well as seven Zicam Cough Mist(TM)
products and four Zicam Cold + Flu relief items.

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Year-to-date net income improved to approximately $391,000, or $0. Sales of products in distribution for more than one year accounted for
58% of our year-to-date sales growth, with the new Zicam Cough Mist(TM)
products accounting for 42% of the growth and 10% of total sales. The Company's sales and earnings are
seasonal in nature with the second quarter accounting for less than 10% of
annual sales.5 million in legal expense reduced by $1. These
forward -looking statements are based on the Company's current expectations and
are subject to a number of risks and uncertainties, many of which cannot be
predicted or quantified and are beyond the Company 's control. Factors that could cause actual results to differ
materially from the Company's expectations include the severity of the next
cold season, the possibility that future sales of Zicam products will not be
as strong as expected, the possibility that supply issues may impact future
sales of Zicam products, the possibility that the Company's products may face
increased competition or negative publicity, the potential impact of current
and future product liability litigation, regulatory issues, or public
relations challenges, the possibility of delays or other difficulties in
implementing new product improvements and introducing to the marketplace new
products and brands; and the possibility that expenses, including legal
expenses, may exceed budgeted amounts.com.

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The improvement in earnings for the second quarter was primarily due
to higher sales within all Zicam(R) product groups (cold , allergy/sinus, and
cough) as well as recognizing a pretax reimbursement of $600,000 that is
expected from our principal insurance carrier for legal expenses incurred by
the Company in defending product liability lawsuits. The insurance
reimbursement (approximately $360,000 after tax) is for a portion of legal
expense incurred in the first two quarters of 2005; no legal reimbursement was
recognized in the second quarter of 2004."
Mr.matrixxinc. Future events
and actual results could differ materially from those set forth in,
contemplated by, or underlying the forward-looking statements .
Additionally, in February 2005, Matrixx announced a new brand, Nasal
Comfort(TM), for which the Company anticipates initial sales and shipments in
the second quarter of 2005. Future events and actual results could
differ materially from those set forth in, contemplated by, or underlying the
forward-looking statements. To listen to the live
presentation please visit http://www. 24th Street, Suite 455,
Phoenix, Arizona 85016.

About the Roth Capital Partners 18th Annual Growth Stock Conference
This conference will feature more than 250 leading growth companies in
sectors such as Technology, Healthcare, Financial Services and Consumer
Products.

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04) per
share , for the first half of 2004.4 million in legal expense reduced by $600,000 for expected reimbursement
of legal expenditures from the Company's principal insurance carrier) in the
second quarter of 2005, compared to approximately $1. Other factors that could cause actual results to differ materially
from the Company's expectations are described in the Company's Annual Report
on Form 10-K filed in March 2005, under the heading "Risk Factors", filed
pursuant to the Securities Exchange Act of 1934. We do not undertake, and we
specifically disclaim, any obligation to publicly update or revise any
forward-looking statement whether as a result of new information, future
events or otherwise . The results of our consumer
use test were very positive. The Company expects annual
net sales will increase 25-35% over the $60. In studies published in the October 2000 issue of ENT --
Ear , Nose and Throat Journal, and separately in the January 2003 issue of QJM:
An International Journal of Medicine, the Zicam Cold Remedy product was shown
to reduce the duration of the common cold.
(Nasdaq: MTXX), a high growth, over-the-counter healthcare company, will be
presenting on February 21, 2006, at the Roth Capital Partners 18th Annual
Growth Stock Conference in Dana Point, California .

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The Company reported a net loss for the second
quarter of approximately $(505,000), or $(0."
Mr."

Second Quarter 2005 Consolidated Financial Results

2005 2004 2005 2004
($000s) 2nd Qtr 2nd Qtr YTD YTD
Net Sales $6,255 $3,392 $ 21,236 $ 16,324
Cost of Sales 1,685 1,072 5,922 5,171
Gross Profit 4,570 2,320 15,314 11,153
Operating Expenses 4,530 3 ,472 13,353 10,888
Research and Development 965 521 1,465 992
Income (Loss)
from Operations (925) (1,673) 496 (727)
Total Other Income
(expense) 125 28 186 74
Net Income (Loss)
Before Tax (800) (1,644) 682 (653)
Income Tax Expense (295) (655) 291 (260)
Net Income (Loss) $(505) $(989) $391 $(393)


Net Income (Loss )
per Diluted Share $ (0.com, 480-675-0400. 24th Street, Suite 455, Phoenix, Arizona 85016 . We will leverage the
experience we gained in growing the Zicam franchise to launch Nasal Comfort
and position the new brand as a must-have product for consumers interested in
respiratory health .

Matrixx Initiatives, Inc. PT. For additional information, contact William Hemelt, Chief
Financial Officer, 602-385-8888, or Bill Barba, Manager of Investor Relations,
at 602-385-8881 .

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10) per share, in the second quarter
of 2004. The growth we have achieved represents success
in providing consumers products that employ novel, unique, and proprietary
delivery systems. As the next cold and flu season approaches, we are focusing on
developing new marketing programs to increase awareness and trial use of our
products.04 $(0.

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4 million (approximately $840,000 net of tax) for a portion of legal
expense incurred in defense of product liability lawsuits in 2004 and the
first and second quarters of this year. Retail sales
of Zicam products continue to gain market share and our growth outpaces the
cough and cold category as a whole. For the 12 weeks ended June 12, 2005,
retail sales (three-outlet syndicated scanner data; not including our customer
Wal -Mart) of Zicam products increased approximately 62% while the total
cough/cold category increased only 13% compared to the same period last year. A replay of the teleconference will be available at (800) 642-1687
(domestic) or (706) 645-9291 (international), access number 7829325 for 3 days
following the call, and the web cast will be archived on the Company's
website, http://www. Zicam, LLC, its wholly-owned subsidiary, produces, markets
and sells Zicam(R) products in the cough and cold category; and plans to
launch a new brand, Nasal Comfort for nasal health in 2005. In studies published in the October 2000 issue of ENT -- Ear,
Nose and Throat Journal, and separately in the January 2003 issue of QJM: An
International Journal of Medicine, the Zicam Cold Remedy product was shown to
reduce the duration of the common cold.com or Max
Ramras at The RCG Group, max@thercggroup. Nasal Comfort is a preservative
free, sterile, hyper-tonic aqueous solution with essential salts and oils that
cleanses and moisturizes the nose.matrixxinc. For more information about
Roth Capital Partners and this conference visit http://www.

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---

- - kjjkjk

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