FAIRFIELD, N.J.--(BUSINESS WIRE)--Unigene Laboratories, Inc. (OTCBB: UGNE) announced that it has agreed with a wholly-owned subsidiary of China Pharmaceutical Group Limited (“CPG”), a limited liability company listed on the main board of the Hong Kong Stock Exchange, to enter into a private placement with gross proceeds to Unigene of $2,008,800. The purchaser is to receive 1,080,000 shares of Unigene common stock in exchange for payment to Unigene of $1.86 per share, an 11% premium to the closing stock price on April 28, 2008, the date on which the parties agreed to the purchase price, in anticipation of finalizing the transaction documents.

"This investment provides a tangible indication of our joint venture partner's belief in the value of our technologies," commented Dr. Warren Levy, President and CEO of Unigene. "We believe that the opportunities in China for our joint venture are significant and supported both by market needs and government-established priorities. The full potential of these opportunities can only be realized through a clear and continued commitment from the partners. Clearly, the terms of our joint venture agreement and this investment confirm that commitment.”

CPG owns 55% of Unigene Biotechnology Co. Ltd., a joint venture originally formed by Unigene and Shijiazhuang Pharmaceutical Group Corporation, a legal entity established under the laws of the People’s Republic of China and the parent of CPG. The remaining 45% of Unigene Biotechnology Co. Ltd. is owned by Unigene.

The securities to be sold in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

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®, 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 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.