To the Editors:The recent article on our company by Abram Brown...

To the Editors:

The recent article on our company by Abram Brown is rife with misrepresentations of fact, false innuendo and serious inaccuracies regarding Unilife and our CEO Alan Shortall. The article is so clearly malicious and motivated by those with negative intentions that I am sure Unilife shareholders and employees will recognize it for the scurrilous journalism it is. We informed Forbes in advance of publication of the false and inaccurate information, but they chose to recklessly go forward anyway. As one example, the article suggests that Mr. Shortall received “$18 million in cash and stock in the last three years.” This is factually wrong. In this article, Forbes has carelessly combined the cash and equity compensation reported for Mr. Shortall over two consecutive three-year packages. For the record, Mr. Shortall’s base annual salary has been $420,000 since 2004 and is at the 50th percentile among the published industry peer group. Mr. Shortall’s equity compensation is in the form of restricted stock and stock options with significant performance and market-based milestones clearly aligned to build shareholder value, which were overwhelmingly voted in favor by shareholders. The market capitalization of the Company would have to increase to $1.5 billion, five times the current value, for all restricted stock and options to vest. Should these milestones not be achieved, Mr. Shortall will forfeit his right to the related options and restricted stock. Equity grants provided to Unilife’s COO, Dr. Mojdeh, are subject to similar performance or market-based milestones. We would like all readers to know that rather than give this baseless article any credibility, we will allow our performance over the coming months to speak for itself.

J. Christopher Naftzger
VP, General Counsel, Corporate Secretary & Chief Compliance Officer
Unilife Corporation