UNIF U and I Financial Corporation (QX)

Unilife Medical Solutions Limited (ASX: UNI) (PINKSHEETS: UNIFF) (Unilife or the Company) is pleased to announce that its 2009 Share Purchase Plan (SPP), which closed on Friday, 30 October 2009, was significantly oversubscribed with applications for approximately 33.7 million new, fully paid ordinary shares (SPP Shares) with a value of approximately A$28.7 million.

As a result of the overwhelming demand for Shares under the SPP, the Board has authorised an increase in the number of Shares to be issued under the SPP from 11,764,705 Shares to raise A$10 million to approximately 25.3 million Shares, to raise approximately A$21.5 million before costs, representing a pro-rata allotment to all shareholders of 75% of their application.

As announced on 7 October 2009, Unilife offered eligible shareholders with a registered address in Australia or New Zealand the opportunity to subscribe for up to A$15,000 worth of Shares under the SPP. In accordance with ASIC Class Order 09/425, applications by individual shareholders for more than A$15,000 worth of Shares have been rejected and, as a result of the over-subscription, the Company will scale back other applications, such that each applicant will receive 75% of their initial application for Shares under the SPP. Unilife will refund any excess application remittances to shareholders (without interest) shortly following allotment of the SPP Shares which is now due to occur on 17 November 2009.

In addition to the receipt of commitments for A$32.1 million from institutional investors in the US and sophisticated and professional investors in Australia, the Board decision to increase the amount to be accepted under the SPP to A$21.5 million has resulted in the total sum committed amounting to A$53.6 million.

The additional funds accepted under this SPP will further help Unilife accelerate the continued expansion of its business activities within the United States and other international markets. In particular, the Board expects that these additional funds will assist the Company with the development of its new global headquarters and production facility to be established in Central Pennsylvania, and fast-track the development of production systems that will support anticipated pharmaceutical market demand for its range of Unifill syringes.

Comment from Unilife Chief Executive Officer, Mr. Alan Shortall

"The Board and I are very pleased by the overwhelming support displayed by the shareholders applying for shares in the SPP. We received applications from over 30% of Unilife's shareholders for almost 200% more money than we intended to raise.

"The Board recognises the importance and support that individual shareholders have provided to Unilife during the past eight years, and the on-going support they are again showing for the Company and its management through these applications.

"The Board wishes to accommodate the shareholders to the greatest extent possible. However, we have conducted a further careful evaluation of our cash requirements for the foreseeable future, and as a result of this review, we simply cannot accept more than 75% of the applied for amounts, and adequately deploy those funds during this period in a productive manner. On behalf of the Board, I would like to express our sincere thanks to all of our shareholders for their trust and support."

Timing and allotment

Allotment of Shares under the SPP will occur on 17 November 2009. Applicants will be advised of their final allocations when holding statements in respect of the SPP Shares are despatched, which is expected to occur on 23 November 2009. It is the responsibility of shareholders to confirm the number of Shares allotted to them under the SPP prior to trading in those Shares. Shareholders who sell SPP Shares before they receive their holding statements do so at their own risk.

About the Unilife Australia Group

Unilife Medical Solutions Ltd is an ISO 13485 certified company that designs, develops and supplies innovative safety medical devices. Listed on the Australian Securities Exchange (ASX: UNI) since 2002, Unilife has FDA-registered manufacturing facilities in the US State of Pennsylvania and a proprietary portfolio of clinical and prefilled safety syringes designed for use within healthcare and pharmaceutical markets.

Shareholder / Analyst Enquiries: Australia Jeff Carter Phone: + 61 2 8346 6500 United States Stuart Fine Phone: + 1 908 469 1788