Unigene Laboratories enters into amended and restated financing agreement

Unigene Laboratories, Inc. (OTCBB: UGNE, http://www.unigene.com) today announced that it has entered into an amended and restated financing agreement for $33 million three-year convertible senior secured term notes. At the closing, which is scheduled to occur today, Unigene will issue $33,000,000 of new convertible senior secured notes due in 2013, in exchange for approximately $19,360,000 of existing non-convertible senior secured term notes which are due in 2011 and the payment to the Company of approximately $13,640,000 in cash at the closing, minus fees related to this restructuring. An entity managed by Victory Park Capital Advisors, LLC is the sole investor in the transaction. Victory Park has the right to designate two directors to the Board of the Company, one as the Chairman of the Board. In connection with this restructuring, Unigene has also restructured notes held by family members of its management. The Company has also agreed to make changes to its senior management. Details of the transaction and copies of the material transaction documents can be found in the Company’s 8-K which will be filed today with the SEC.

“We are pleased to be able to complete this debt restructuring with our largest stockholder and senior lender to provide the Company with approximately $13.6 million in additional capital”

“We are pleased to be able to complete this debt restructuring with our largest stockholder and senior lender to provide the Company with approximately $13.6 million in additional capital,” commented Dr. Warren P. Levy, President and CEO of Unigene. “This infusion of additional capital, coupled with the fact that we will not need to make interest payments on the notes until their maturity and that maturity date has been extended by approximately 18 months, will significantly improve our financial condition.”