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Exclusivity of Supply

An exclusivity fee will be added onto the negotiated unit price of the Unifill syringe when agreed exclusivity conditions are met. Unilife will grant to the pharmaceutical customer an exclusivity of supply right for the Unifill syringe for a specific indication and Western European geography.

The Unifill syringe was selected by the pharmaceutical customer because of its capacity to differentiate its drug from brand name or generic competitors. The implementation next year of a legally binding E.U directive mandating the use of needlestick prevention products within European healthcare facilities also played a significant role in the selection of the Unifill syringe. Exclusive access to the Unifill syringe further strengthens the pharmaceutical customer's competitive strategy.

Other international geographies have also been reserved for exclusivity by the pharmaceutical customer, and will be added subject to the agreement of terms by both parties.

Projected Revenue
Initial sales of the Unifill syringe to the pharmaceutical customer will commence in July 2012. Sales are expected to progressively increase in anticipation of the scheduled commercial launch of the pharmaceutical customer's drug within international geographies after regulatory approvals are granted during Fiscal Year 2013. Annual unit volumes for the Unifill syringe within the initial European geography are expected to reach up to 10 million units during the contract period, generating up to $15 million in revenue per year.

The unit volumes for the Unifill syringe can increase as other reserved international geographies are added by the pharmaceutical customer.

For commercial purposes and due to confidentiality clauses within agreements, additional terms of the contract and the identity of the pharmaceutical company are to remain confidential at this time