Unigene Laboratories, Inc. announced that a wholly-owned subsidiary of its Chinese joint venture partner, the Hongkong-listed China Pharmaceutical Group, will acquire 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, totaling $2,008,800.

"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.

CPG owns 55% of Unigene Biotechnology Co. Ltd., a joint venture originally formed by Unigene and CPG's parent Shijiazhuang Pharmaceutical Group Corporation. The remaining 45% of Unigene Biotechnology Co. Ltd. is owned by Unigene.

Unigene Laboratories, Inc. is an OTCBB-listed 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.