Unilife is in the middle of a significant global business expansion program that will consolidate key commercial and operational functions within the U.S., expand the level of in-house expertise available to complete key projects such as the Unilife Ready-to-Fill Syringe, and help position the Company to maximise shareholder value moving forward.

This global expansion commenced in 2007 with the acquisition of Integrated BioSciences, Inc (IBS), a contract medical device manufacturing company with strong expertise in automated assembly systems. The merger of the skill sets at IBS with those of Unilife created a much stronger business that had the capacity to design, develop and manufacture innovative safety medical devices, as well as the automated assembly systems used to produce them.

In August 2008, Unilife commenced the second stage of its global expansion with the relocation of key commercial and operational functions from Australia to the FDAregistered facilities of IBS in the U.S. Commonwealth of Pennsylvania. Unilife will continue to appoint additional staff to support the industrialisation of the Unilife Ready-to-Fill Syringe, the production and sale of the Unitract 1mL Syringes and the pursuit of other additional business expansion opportunities.

In April 2009, Unilife announced the name change of IBS to Unilife Medical Solutions, Inc in anticipation of the proposed redomiciliation of the Company from Australia to the U.S. At the same time as this name change, Unilife announced that it would receive funding from the Commonwealth of Pennsylvania to create additional jobs and investment within the state.

Unilife has reviewed a number of options for the establishment of a major new facility within Central Pennsylvania. The new facility, which is expected to serve as Unilife’s long-term global headquarters, is expected to be completed during 2010.

Unilife commenced the third stage of its business expansion strategy in September 2009, with a proposed redomicilation of the Company to the U.S. To support this transition of Unilife from an Australian to a U.S. business, the Company has also announced its intention to complete a proposed listing on NASDAQ. The Board considers that a NASDAQ listing is likely to provide increased liquidity for Unilife securities and has the potential to attract new U.S. investors to the Company. The completion of this proposed redomiciliation to the U.S. and subsequent NASDAQ listing is intended to enhance Unilife’s ability to manage and grow its business in key markets.