Unigen Pharmaceuticals, Inc. Enhances Capabilities Through Vertical Integration

Exclusive Access to Proprietary Ingredients

Broomfield, CO, May 15, 2002--Unigen Pharmaceuticals, Inc., a leading natural products research and development facility and proprietary ingredients supplier has invested in several new strategic properties around the world that will provide Unigen customers direct and immediate access to the finest ingredients available.

"We call the vertical integration idea our EcoNet. It has been a reality since the early 1990s," stated Derek Hall, chief executive officer of Unigen Pharmaceuticals, Inc. "Basically, we farm plants and control their cultivation in Korea, Mexico, Russia, Texas and soon to be Hainan Island, China. Some of the products we presently grow on a large-scale are Siberian ginseng, soy beans, rice and aloe vera."

Unigen currently operates a 10,000-acre plantation in Vladivostok, Russia, that is the source for some of their proprietary plant materials. This agricultural estate is ideal because of the unique fertile soil and relatively mild climate. Hainan Island will soon be home for an aloe vera plantation, the outputs of which will be earmarked for Unigen Asia partners. Hainan Island is a resort island and will provide not only a beautiful location for the plantation but is a future site for a resort and spa for customers and partners of the Unigen family of companies.

There are several advantages to vertical integration including controlling quality from the farmer to the consumer, ensuring constant supply of materials, pricing economies and reducing opportunism and market uncertainty.

Hall went on further to say "We have highly specialized assets required for our research and development facility and with our frequent need for the materials we use, vertical integration reassures us that we can work with, and in turn provide, a consistent supply of the best ingredients possible."

Unigen is in a strong competitive position in a highly attractive industry. With their specialized staff, state-of-the-art facility and processes, coupled with powerful international partnerships they expect to lead the cosmeceutical, nutraceutical and pharmaceutical supply marketplace. There are very few companies in the industry who grow and sell commodities with the science and research equal to that which Unigen is able to provide.

All of the Unigen plantations have access to their fully-indexed research resource, PhytoLogix(TM). This database allows the research and development team to update and search tens of thousands of ethnomedicinal plants categorized by their traditional and historic uses. This database will be enhanced by the companies direct access to proprietary material allowing them to share considerable time off of the front end of the research process.

Unigen is dedicated to the discovery of botanically derived therapeutic compounds that address consumer health needs and help improve the quality of human life. Unigen, and sister company Aloecorp, are subsidiaries of the Unigen Group of companies. Each company focuses on identifying and studying the unique ingredients of medicinal botanicals and then formulating proprietary raw materials for use in cosmeceutical, nutraceutical and pharmaceutical products.

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Derek Hall
Unigen Pharmaceuticals, Inc.
[email protected]

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