Medizone International Announces Restructuring Salt Lake City, UT - June 18, 1997 - Medizone International, Inc. ("Medizone") (OTC.BB:MZEI.U) announced today that its Board of Directors has approved all of the resolutions proposed by a proxy sent to shareholders of record on May 20, 1997 by the Sand Dollar Solution, a California limited partnership formed by Medizone shareholder Edwin G. Marshall. The board voted to appoint the four new directors (Milton G. Adair, William Hitt, Ph.D., M.D., Edwin G. Marshall and Gerard V. Sunnen, M.D.) proposed by the proxy after indications that shareholders are overwhelmingly in favor of the proxy proposals, which recommended to shareholders that: (1) The four new board members be elected (2) Authorization be given for Sand Dollar to receive warrants to purchase up to $11 million in common stock to be used to raise funds for Medizone International. (3) Joseph Latino be removed as president, chief executive officer and chairman of the Company. NEW BOARD APPOINTED Dr. Joseph S. Latino was terminated as Medizone's president, chief executive officer and chairman by the old board on May 14, 1997, but, in accordance with the Corporation's by-laws, he remained a member of the Medizone Board of Directors. The first action of the newly elected board was to request Dr. Latino's resignation as a board member, which he declined. Action is intended to be taken to ensure his removal. Replacing Latino as president and full-time chief executive officer is Milton G. Adair (64) who brings over 30 years experience in the biomedical field. Prior to joining Medizone, Adair was president and chief executive officer of Biomune Systems (NASDAQ: BIME), an international company specializing in nutritional AIDS products. He held this position since January 1996. From September 1991 to January 1996, Adair was president and chief executive officer of Gull Laboratories (AMEX: GUL), an international diagnostic company with a primary focus in the infectious disease market. Adair had also served as president and chief executive officer of Mountain Medical Equipment Company and Orbit Medical Systems (a venture company in immunochemistry) as well as serving as an FDA Liaison Officer to ensure compliance on new drug applications and labeling. "In order for us to be successful in turning this situation around, we knew we had to recruit a leader in the industry to take the helm at Medizone," said Edwin G. Marshall, new chairman of the board. "We are very fortunate to have found such a leader in Milton Adair whose proven track record speaks for itself and who will provide Medizone invaluable knowledge and experience." Adair; Hitt M.D., Ph.D.; Marshall, and Sunnen, M.D. were apppointed to the board and John Pealer and George Handel, who both fully supported the changes, then resigned. Edwin Marshall was elected chairman and Gerard Sunnen, M.D. was made responsible for establishing a new scientific advisory board and renewing working relationships with the Italian scientific investigators. Edwin G. Marshall (54) is a private investor with a broad business background who has focused his attention on Medizone's need for redirection in order to successfully achieve its scientific objectives, through the Sand Dollar Solution. Dr. William Hitt (70) was a former instructor of immunology at John Hopkins and Louisiana State Universities. He is also a long time member of the World Health Organization, the recipient of the Eli Lily award for his discovery and report of new anaerobic species of mycoplasma, and has received the Leeuwenhoek Award of France, the Cientifico Destacado of Mexico, the Bioethics International Award of Merit, and as a director of Physicians against Nuclear War, was awarded the Nobel Peace Prize with this group. He founded the Allergy Control Group in Dallas, Texas and the Micro Allergy Clinic in Houston, Texas and there are currently seven William Hitt centers internationally. Dr. Gerard Sunnen (54), a former Air Force physician, is currently a practicing clinical psychiatrist and psychopharmacologist in private practice in New Jersey. He has authored a number of articles, Ozone in Medicine: Overview and Future Directions, in the Journal of Advancement in Medicine. During the transition phase Kenneth Gropper will remain on the Board and continue to provide operating support to the Company as chief operating officer reporting to Milton Adair. WARRANTS APPROVED FOR FUNDING The Medizone Board also approved the issuing of $11 million of warrants to Sand Dollar to raise funds as specified in the proxy solicitation. The warrants will be issued in three increments of $0.07, $0.15, and $0.20 with a median price of $0.15. The company expects Sand Dollar Solution to exercise the $0.07 warrants in the near future because they expire in 90 days. REBUILDING BUSINESS RELATIONSHIPS The new management has started a full review of all aspects of the Company's operation and scientific potential and will reopen discussions with those the Company has previously worked with including the Canadian Department of National Defense and their research contractors, potential commercial and/or scientific allies or competitors and relevant government agencies. Specifically addressing four key points of development for the Company: Key Italian research principals have responded positively to the management changes and redirection and progress for the proposed human therapeutic trials in HIV/AIDS and Hepatitis B at five Italian University base sites is moving forward. The agreement between Medizone and JRH Biosciences announced April 22, 1997 to develop commercial treatment of bovine serum using Medizone technology will go forward. Discussions are under way with a significant world producer of veterinarian based products. The Company's new management and officers are commited to pursue all avenues to bring Medizone science to commercial utilization as quickly as possible. RELOCATION TO SALT LAKE CITY, UTAH The Company will be relocated to Research Park, owned by the University of Utah in Salt Lake City. Research Park is recognized as one of the leading biotech and medical centers in the country. Milton Adair will be sending to shareholders additional information on the site of the new corporate headquarters, along with a progress report on Medizone within 45 days following the relocation. "All of us, shareholders, management and investors in Medizone, were attracted to this Company because of its compelling science; that has not changed", said Edwin G. Marshall, Medizone's newly elected Chairman and managing partner of Sand Dollar Solution. "Good things do not always come easily, and this has certainly been the case with Medizone. One constant has remained however, the ability of Medizone's patented Thin Film/Ozone technology to inactivate lipid enveloped viruses without major concern relative to toxicity issues. I believe the board and management changes, combined with the proposed funding through Sand Dollar, will give the shareholders the opportunity to take great pride in their Company in the very near future. Medizone is developing the utilization of Thin Film technology in the application of ozone for the decontamination of blood and blood products as well as for therapeutic treatment of certain diseases caused by lipid enveloped viruses, including Aquired Immunodeficiency Syndrome (AIDS), Hepatitis B, Herpes, and Epstein Barr. Medizone is a development stage company. Except for historical information, matters discussed in this press release are forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include: risks associated with aquiring, developing and testing new products and technologies; unfavorable results in clinical trials; failure to identify and enroll patients meeting clinical criteria; additional testing required by regulatory authorities; failure to gain regulatory approvals; development of alternative therapies by competitors; availability of additional funding; and levels of resources devoted by the Company to the development of its manufacturing and marketing capabilities.