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July 31, 2013
Dear Shareholders,
Your Board, management team and employees have worked hard for many years to reach that critical point when all the pieces come together. For Unilife, that time is now. A large and growing number of pharmaceutical companies are seeking to partner with Unilife in recognition of how our game-changing products, world-class team and advanced operational capabilities can enhance and differentiate their injectable therapies. Several pharmaceutical companies have selected Unilife for major drug programs that we expect will be progressively announced and generate upfront payments during this calendar year.

I expect the announcement of these programs will transform Unilife. We are advised that a commercial supply agreement for the Unifill syringe remains in the formal process of being signed by a global pharmaceutical company.

Agreements with several other pharmaceutical companies have now been through multiple iterations and are fast approaching ratification. Payments are already being received from some customers for device programs prior to the finalization of pending contracts.

While I share the eagerness of many shareholders to announce these significant contracts, our top priority is to build long-term partnerships with each pharmaceutical customer and to maintain the integrity and trust of these relationships.

Accordingly, we will work at the speed of each customer to finalize and announce each contract. Based upon the advanced status of negotiations with our customers, we see no reason to alter previous forecasts for up to a dozen contracts to be announced or begin generating revenue this calendar year. Indeed, the next announcement may come from any number of programs and customers. The announcement of these programs will begin to reflect the substantial and growing shareholder value being built by our continued investment in product development and expanding intellectual property portfolio.

The upfront and recurring payments generated from these contracts are likely to have a long-lasting, positive impact on our operations. Given the magnitude of some of these anticipated announcements and our confidence in their finalization, we are seeking to minimize dilution to existing shareholders as much as possible while managing our cash position to finance our growth. As previously discussed, we are working with a number of U.S. financing groups specializing in debt financing for life sciences companies like Unilife. We have received multiple financing proposals and will select the most beneficial one when appropriate.

During favorable market conditions, we also have utilized our At-The-Market (ATM) facility to strengthen our balance sheet and minimize dilution as we move towards strong, accelerating revenue growth.

Having reached this important threshold in Unilife’s transformation into a commercial leader for injectable drug delivery systems, it is critical that we maintain our strength and flexibility. Accordingly, the Board and I wish to remind you that one-third of all eligible common stock is required to be voted in order to constitute a quorum for the upcoming Special Meeting of Stockholders to be held on Thursday, August 22 at 4:00 pm U.S. Eastern Daylight Time (Friday, August 23 at 6:00 am Australian Eastern Standard Time).

It is important for all shareholders to exercise their right to vote. We therefore encourage you to vote prior to the August 18 deadline, and to support the Board by voting FOR both proposals.

Thank you for your continued support.
Alan Shortall CEO