DOYLESTOWN, PA. - August 20, 2004 - The Quigley Corporation (Nasdaq: QGLY) has signed an asset purchase and sale agreement with JOEL, Inc. for $5.1 million, which includes $4.1 million in cash and $1.0 million of the Company's stock. Upon completion of all agreement requirements, the transfer of assets, which includes land, buildings, machinery and equipment of two manufacturing facilities, located in Lebanon and Elizabethtown, Pennsylvania will occur on October 1, 2004. The Company will either fund the entire acquisition through its current working capital, or may finance a portion of the transaction with a commercial bank.

JOEL, Inc. is a FDA approved contract manufacturer of lozenges and other candy food products. JOEL, Inc. has been the exclusive manufacturer of the Company's Cold-EEZE® Lozenge since its launch in 1995. The Company is exploring whether it will continue manufacturing several other products currently being manufactured by JOEL, Inc., particularly Joel's line of organic hard candies and lozenges, under the College Farm™ brand. The JOEL facility and its current organic hard candy line is currently the only manufacturing plant approved for manufacture of organic hard candies and lozenges within the United States.

Guy J. Quigley, Chairman, President and Chief Executive Officer stated, "We do not anticipate this transaction will have a material impact to our bottom-line results at current revenue levels. However, the plant is currently utilizing a fraction of its capacity, and as volume increases, the purchase may produce savings. The real benefit to the Company is the manufacturing expertise this acquisition provides. Producing Cold-EEZE® is a highly complex process, which requires very specialized and technical know-how developed by the Company. Ownership of these assets will further protect our interests while tightening our control over the process, thus insuring the manufacturing formula is held secret."

The Quigley Corporation (Nasdaq: QGLY, http://www.Quigleyco.com) is a leading developer and marketer of diversified health products including the COLD-EEZE® family of patented zinc gluconate glycine (ZIGG™) lozenges and sugar free tablets. COLD-EEZE is the only (ZIGG) lozenge proven in two double-blind studies to reduce the duration of the common cold from 7.6 to 4.4 days or by 42%. In addition to Over-The-Counter (OTC) products, the Company has formed Quigley Pharma Inc. (http://www.QuigleyPharma.com), a wholly owned ethical pharmaceutical subsidiary, to introduce a line of naturally derived patented prescription drugs. The Quigley Corporation's customers include leading national wholesalers and distributors, as well as independent and chain food, drug and mass merchandise stores and pharmacies. The Quigley Corporation makes no representation that the U.S. Food and Drug Administration or any other regulatory agency will grant an IND or take any other action to allow the aforementioned products to be studied or marketed. Furthermore, no claim is made that the potential medicine discussed here is safe, effective, or approved by the Food and Drug Administration.