FAIRFIELD, N.J., Jan 08, 2008 (BUSINESS WIRE) -- Unigene Laboratories, Inc. (OTCBB: UGNE) announced plans to broaden the activities of its joint venture with the Shijiazhuang Pharmaceutical Group Co., Ltd ("SPG") and to expand the potential product line to be developed and marketed by the joint venture.

Unigene and SPG plan to establish the SPG-Unigene Biotechnology Research Institute in China. The Institute will continue ongoing registration activities for Unigene's calcitonin products, develop biopharmaceutical manufacturing facilities compliant with U.S. current Good Manufacturing Practice guidelines, and establish and supervise the creation of a new pharmaceutical distribution network for joint venture products in China, all to take advantage of the world's largest osteoporosis market. Unigene will maintain its 45% ownership position in the joint venture. The combined capital investment commitment for the joint venture will remain at $15 million. Unigene's initial cash contribution to the joint venture will remain at $900,000, which will be paid by Unigene upon the satisfaction of certain conditions, while the majority, or possibly all, of its remaining contribution will be in the form of technology.

"The creation of the Institute should allow for the addition of potential new revenue-generating products and programs to our joint venture distinct from calcitonin, thereby expanding our commercial opportunities in China," commented Dr. Warren Levy, President and CEO of Unigene. "The formation of the Institute will allow us to take advantage of the rapidly growing market potential for biotechnology products in China, to apply for government funds to support joint venture programs and to more fully utilize the additional resources available as a result of the acquisition of SPG by a private equity fund led by Legend Holdings and Goldman Sachs, which occurred in August of 2007."

About Unigene

Unigene Laboratories, Inc. is a biopharmaceutical company focusing on the oral and nasal delivery of large-market peptide drugs. Due to the size of the worldwide osteoporosis market, Unigene is targeting its initial efforts on developing calcitonin and PTH-based therapies. Fortical(R: 43.24, -1.07, -2.41%), Unigene's nasal calcitonin product for the treatment of postmenopausal osteoporosis, received FDA approval and was launched in August 2005. Unigene has licensed the U.S. rights for Fortical(R: 43.24, -1.07, -2.41%) to Upsher-Smith Laboratories, worldwide rights for its oral PTH technology to GlaxoSmithKline and worldwide rights for its calcitonin manufacturing technology to Novartis. Unigene's patented oral delivery technology has successfully delivered, in preclinical and/or clinical trials, various peptides including calcitonin, PTH and insulin. Unigene's patented manufacturing technology is designed to cost-effectively produce peptides in quantities sufficient to support their worldwide commercialization as oral or nasal therapeutics. For more information about Unigene, call (973) 882-0860 or visit www.unigene.com. For information about Fortical, visit www.fortical.com.

Safe Harbor statements under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based upon Unigene Laboratories, Inc.'s management's current expectations, estimates, beliefs, assumptions, and projections about Unigene's business and industry. Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "potential," "continue," and variations of these words (or negatives of these words) or similar expressions, are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various risk factors. These risks and uncertainties include the risks associated with the effect of changing economic conditions, trends in the products markets, variations in Unigene's cash flow, market acceptance risks, technical development risks and other risk factors detailed in Unigene's Securities and Exchange Commission filings.

SOURCE: Unigene Laboratories, Inc.

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