Unigene to Present Initial Animal Data on Site-Directed Bone Growth.

FAIRFIELD, N.J. -- Unigene Laboratories, Inc. (OTCBB: UGNE) will present initial animal data for its site-directed bone growth (SDBG) technology on Monday, June 25, 2007 at the 17th Scientific Meeting of the International Bone and Mineral Society in Montreal, Canada.

The poster presentation is entitled "Rapid Site-Specific Bone Growth by a Combination of Bone Marrow Ablation and Anabolic Therapy," and will demonstrate the technology's ability to create new bone within the femur of an animal and thereby improve the biomechanical properties of the bone.

"We believe that SDBG has the potential to decrease cost and improve the quality of life of patients with certain bone conditions," commented Dr. Warren Levy, President and CEO of Unigene. "Our team of researchers at Unigene and Yale, in collaboration with leading clinicians in interventional radiology and orthopedic surgery at Johns Hopkins Medical School, is actively exploring the capabilities of the technology. We will seek to complement our activities with those of a development partner having experience with products that combine biological agents and devices."

About SDBG

The SDBG technology was developed by scientists at Unigene and Yale University Medical School. It involves a minimally invasive surgical procedure in conjunction with a proprietary device and the administration of one or more biological agents, including a systemic anabolic agent. Additional animal studies are underway and human studies are planned in the near future.

The technology may find utility in the treatment and/or prevention of vertebral compression, hip and long bone fractures, and chronic back pain.

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]), 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]) 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 [phone] or visit www.unigene.com. For information about Fortical, visit www.fortical.com.

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