Announced on: 14/10/2009 17:33:0014 October, 2009 Dear...

Announced on: 14/10/2009 17:33:00

14 October, 2009 Dear Shareholder 2009 SHARE PURCHASE PLAN: AN OPPORTUNITY TO INCREASE YOUR SHAREHOLDING
IN UNILIFE MEDICAL SOLUTIONS LIMITED Background Unilife Medical Solutions Limited (Unilife) has received significant interest in recent months from US and Australian investors, as well as other industry stakeholders, regarding its intention to redomicile the Unilife Group in the United States, list on NASDAQ and complete the full commercialisation of an expanding portfolio of proprietary safety syringe products targeted for use within fast-growing pharmaceutical and healthcare markets. To support and accelerate a number of significant business expansion activities scheduled to occur within the United States over the coming months, the Board of Directors determined in early September 2009 that it was in the best interests of Unilife shareholders to strengthen the financial position and available cash reserves of the Company now, rather than waiting until after our anticipated listing on NASDAQ. Since that time, Unilife's CEO, Alan Shortall, and our corporate advisers in Australia and the United States have pursued a plan to raise an amount of capital which we believe will be
sufficient to fund our key projects and other business expansion activities well into the foreseeable future. Subsequently, Unilife announced on October 7, 2009 that it had received commitments from sophisticated and professional investors in Australia, and accredited investors in the United States for a A$32.1 million placement of ordinary shares (Placement). In conjunction with the Placement, Unilife is now offering its eligible shareholders the opportunity to acquire further shares in Unilife under a Share Purchase Plan (SPP) at the same price of A$0.85 as offered to participants in the Placement. Unilife intends to use the proceeds raised from the Placement and SPP to accelerate the expansion of its operational capabilities, production facilities and equipment requirements in the United States, and complete the industrialisation of the Unilife Ready-to-Fill Syringe which is currently running 12 months ahead of its original schedule. These proceeds will also be used to fast-track the commercialisation of additional pipeline products which Unilife had been developing more slowly in order to focus its available financial and personnel resources on the development of its initial key products. Unilife will now work to rapidly complete development of these additional products with other interested majopharmaceutical companies with whom the Company is currently in discussions. Furthermore, these proceeds will help ensure the Company has adequate cash reserves leading up to, and following, its proposed redomiciliation in the United States and proposed listing on NASDAQ.