Matrixx Initiatives, Inc. Reports Fiscal 2009 Revenue Increased 11% to a Record $111.6...

Matrixx Initiatives, Inc. Reports Fiscal 2009 Revenue Increased 11% to a
Record $111.6 Million and Earnings Per Share Increased 40% to $1.46

Fiscal 2009 operating margin increased from 16% to 20% in fiscal 2009

SCOTTSDALE, Ariz., May 11 /PRNewswire-FirstCall/ -- Matrixx Initiatives, Inc.
(Nasdaq: MTXX), an over-the-counter healthcare company that develops and
markets Zicam(R) products that provide consumers with "better ways to get
better(R)," today announced financial results for its fourth quarter and
fiscal year ended March 31, 2009.

For the fiscal year ended March 31, 2009, net sales increased approximately
11%, to $111.6 million, compared to net sales of $101.0 million for the twelve
months ended March 31, 2008. Additionally, net income increased approximately
33%, to $13.9 million, or $1.46 per diluted share, compared to net income of
approximately $10.4 million, or $1.04 per diluted share, for the twelve months
ended March 31, 2008.

For the fourth quarter ended March 31, 2009, the Company reported net sales of
$30.8 million, versus net sales of $33.0 million in the quarter ended March
31, 2008. Net income decreased to approximately $3.1 million, or $0.33 per
diluted share, compared to net income of approximately $5.7 million, or $0.59
per diluted share, in the prior year's fourth quarter. The decrease in net
sales of $2.2 million was partially offset by the increase in gross margin
from 67% in the quarter ended March 31, 2008, to 74% in the quarter ended
March 31, 2009. Net income in the fourth quarter of fiscal 2009 was impacted
by $4 million of higher marketing expense compared to the prior year; $3
million of the increase was a planned shift in spending from our fiscal third
to fourth quarter.

Bill Hemelt, Acting President and Chief Operating Officer, said, "In fiscal
2009, Matrixx produced strong results despite an unusually weak cold season
and declining economic environment. The 11% increase in fiscal 2009 net sales
was driven primarily by increased sales within our core Zicam Cold Remedy and
Allergy/Sinus products. Significant growth within our core group of products
has offset declines in sales of Cough and Multi-symptom products. During
fiscal 2009, the performance of our core products was highlighted by a 16%
increase in Cold Remedy sales, primarily driven by a 49% increase in our
patented Cold Remedy Swabs. Additionally, the introduction of our Allergy Swab
product contributed to a 29% improvement in total Allergy/Sinus sales. Those
increases offset a decline in sales of cough and multi-symptom products.
During this challenging year we improved gross margins to 71%, effectively
managed expenses, and improved our operating income margin to 20% from 16% in
the prior year."

Mr. Hemelt continued, "The 2008/2009 cold season had the lowest incidence of
illness since Zicam was introduced in 1999. Despite the weak season, sales of
Zicam products at retail outperformed the cough/cold category. For the 52
weeks ended March 22, 2009, retail unit sales (three-outlet syndicated scanner
data, not including Wal-Mart or club stores) of Zicam products decreased
approximately 1%, while the total cough/cold category declined approximately
3% compared to prior year. This resulted in Zicam products maintaining a 2.0%
unit share of the category. Although the weak cold season slowed our rate of
growth during the current year, we believe our advertising campaign increased
awareness of Zicam products, particularly our swab delivery items."

In fiscal 2010, the Company will continue to focus on growing sales in its
core Cold Remedy and Allergy/Sinus franchise. We anticipate introducing new
innovative Cold Remedy products in fiscal 2010 and we will continue to invest
in new product development to support further growth in future years. For
fiscal 2010, the Company anticipates revenue increasing 5% above the $111.6
million achieved in fiscal 2009. The Company also expects net income and
earnings per share to increase 10% to 15% above the $13.9 million, or $1.46
per diluted share, recognized in fiscal 2009.

Mr. Hemelt remarked, "The $10.7 million increase in fiscal 2009 net sales is
attributable to higher unit sales and new product introductions ($12 million),
a price increase ($4 million), lower product return charges ($2.4 million) and
initial sales in Canada ($1.0 million). Partially offsetting the increases was
an $8.7 million decline in sales of Cough and Multi-symptom products. Gross
margin increased to 74% for the quarter ended March 31, 2009, compared to 67%
for the quarter ended March 31, 2008, and we achieved average gross margins of
71% for fiscal 2009, compared to 66% in the prior year. We anticipate ongoing
gross margin and operating income margin improvements in fiscal 2010."

"Our balance sheet substantially improved over the year with inventory
decreasing to $7.7 million from $11.5 million at the prior year-end. We
increased our cash and marketable securities to $40.0 million from $27.9
million at March 31, 2008. Our ability to improve gross margins and strengthen
our balance sheet during the past year continues to validate our outsource
business model, which provides flexibility during seasonal variations and
surges in the incidence of cold and flu. During the quarter ended March 31,
2009, the Company repurchased 153,848 shares of its stock under the stock
repurchase program announced in January 2009."

There will be a teleconference Tuesday, May 12, 2009 at 11:00 a.m. EDT to
discuss fourth quarter and fiscal 2009 financial results. To access the
teleconference, please call (877) 719-9804 (domestic) or (719) 325-4753
(international). To listen to the teleconference via the Internet, go to
http://www.matrixxinc.com and click on Events & Presentations. A replay of the
call will be available at (888) 203-1112 (domestic) or (719) 457-0820
(international), replay number 9403127 for 3 days following the call, and the
web cast will be archived on the Company's website, http://www.matrixxinc.com,
for 30 days.

Matrixx Initiatives, Inc.
(Unaudited)

Three Months Ended Twelve Months Ended
March 31, March 31,
($000s) 2009 2008 2009 2008
Net Sales $30,788 $33,022 $111,630 $100,972
Cost of Sales 8,098 11,061 32,876 34,532
Gross Profit 22,690 21,961 78,754 66,440
Operating Expenses 17,037 12,389 53,205 46,520
Research and
Development 684 785 3,235 4,108
Income from
Operations 4,969 8,787 22,314 15,812
Total Other Income 47 130 287 653
Net Income Before Tax 5,016 8,917 22,601 16,465
Income Tax Expense 1,879 3,201 8,737 6,037
Net Income $3,137 $5,716 $13,864 $10,428

Net Income per
Diluted Share $0.33 $0.59 $1.46 $1.04
Average Shares
Outstanding (mil) 9.4 9.7 9.5 10.0

Selected Balance Sheet Information

($000s) March 31, March 31, March 31,
2009 2008 2007
Cash and Marketable
Securities $40,015 $27,933 $16,944
Accounts Receivable -
Trade $14,769 $12,052 $8,257
Inventory $7,740 $11,530 $15,459
Total Assets $91,360 $78,149 $71,151
Current Liabilities $15,477 $10,574 $9,556
Working Capital $52,075 $44,612 $38,705
Total Debt $0 $0 $0
Shareholders' Equity $73,077 $65,552 $60,435

About Matrixx Initiatives, Inc.
Matrixx Initiatives, Inc. is engaged in the development and marketing of
over-the-counter healthcare products that utilize innovative drug delivery
systems. Zicam, LLC, its wholly-owned subsidiary, markets and sells Zicam(R)
products in the cough and cold category. Zicam Canada, Inc., a wholly-owned
subsidiary of Zicam, LLC markets and sells select Zicam products in Canada.
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. 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. The Company also
manufactures and markets a full line of Zicam brand pharmaceuticals, including
Zicam Cold Remedy Swabs(TM); Zicam Cold Remedy Chewables(TM); Zicam Cold
Remedy Oral Mist(TM); Zicam Cold Remedy RapidMelts(TM); Zicam Allergy Relief;
Zicam Extreme Congestion Relief; Zicam Sinus Relief; as well as Zicam Cough
products and Zicam Multi-Symptom relief items. For more information regarding
Matrixx products, go to www.Zicam.com. To find out more about Matrixx
Initiatives, Inc. (Nasdaq: MTXX), visit our website at www.matrixxinc.com.
For additional information, contact William Hemelt, Acting President and Chief
Operating Officer, 602-385-8888, or Bill Barba, Treasurer & Director of
Investor Relations, at 602-385-8881. Matrixx is located at 8515 E. Anderson
Dr., Scottsdale, Arizona 85255.

Matrixx Initiatives, Inc. Forward-Looking Statement Disclaimer:

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The words "believe,"
"expect," "plan," "anticipate," and other similar statements of expectation
identify forward-looking statements and include statements regarding: (i) our
revenue, operating income margin, earnings per share and net income
expectations for the fiscal year ending March 31, 2010; (ii) our expectations
regarding the introduction of new products; and (iii) our expectations
regarding gross margin for fiscal 2010. 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. Future events and actual results could
differ materially from those set forth in, contemplated by, or underlying the
forward-looking statements. Factors that could cause actual results to differ
materially from the Company's expectations include: (a) the severity and
timing of the cold season; (b) the possibility that future sales of our
products will not be as strong as expected; (c) the possibility that supply
issues may impact future sales of our products; (d) the possibility that our
products may face increased competition or negative publicity; (e) the
potential impact of current and future product liability litigation; (f)
regulatory issues or public relations challenges; (g) the possibility of
delays or other difficulties in selling our products in Canada or in
implementing new product improvements and introducing to the marketplace new
products and brands; (h) the possibility that expenses, including legal
expenses, product reserves, and expenses associated with adverse litigation
outcomes or the current product recall, may exceed expected amounts; and (i)
the possibility of future recalls. 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 on June 13, 2008, 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.

SOURCE Matrixx Initiatives, Inc.

William Hemelt, Acting President and Chief Operating Officer, +1-602-385-8888,
or Bill Barba, Treasurer & Director of Investor Relations, +1-602-385-8881,
both of Matrixx Initiatives, Inc.