Healthcare Industry News:  Upsher-Smith 

Biopharmaceuticals Drug Delivery Distribution

 News Release - May 10, 2006

Unigene Enters into Exclusive Distribution Agreement for Fortical(R) Nasal Spray in Israel

FAIRFIELD, N.J.--(HSMN NewsFeed)--May 10, 2006--Unigene Laboratories, Inc. (OTCBB: UGNE ) has entered into an exclusive distribution agreement with Tzamal Bio Pharma Ltd. to distribute its Fortical® nasal spray in Israel for the treatment of osteoporosis. Tzamal will pay Unigene a fixed price per each unit of product it receives and has guaranteed minimum sales levels for the first three years following the product launch. Tzamal is also responsible for registering the product with the Israeli Ministry of Health, a process that normally requires 6-12 months, and they will reference Unigene's 2005 U.S. approval to facilitate the regulatory review process.

"We are very happy to be the exclusive distributor of Fortical in Israel," commented Eddy Steinberg, General Manager of Tzamal Bio Pharma. "We believe that the product will be well received as a safe alternative to the currently marketed osteoporosis therapies."

"This is a part of our broader strategy to introduce Fortical into additional territories and we feel that Tzamal is well positioned to maximize the product's market penetration in Israel," said Dr. Ronald S. Levy, Unigene's Executive Vice President. "Once the product is approved, we will be supplying them with the identical units that we currently market in the U.S."

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 For information about Fortical, visit

About Tzamal Pharma

Tzamal Pharma is a privately owned sales and marketing organization for Middle Eastern territories. Tzamal is committed to providing hospitals and healthcare funds with high quality pharmaceuticals for defined therapeutic fields such as cancer, infertility and metabolic diseases. For more information, visit

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Source: Unigene Laboratories

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