FOR IMMEDIATE RELEASE                  Contact: Warren P. Levy, Ph.D., President
                                                Unigene Laboratories, Inc.      
                                                973/882-0860     

                                                Thomas Redington                
                                                203/222-7399     
                                                212/926-1733     



                      UNIGENE RECEIVES FIRST PAYMENTS FROM
                     WARNER-LAMBERT FOR OSTEOPOROSIS PRODUCT



         Fairfield,   NJ,   August  4,  1997  --  Unigene   Laboratories,   Inc.
(Nasdaq:UGNE)  announced the receipt of $6 million from  Warner-Lambert  Company
pursuant  to the  terms  of its  licensing  agreement  for oral  calcitonin  for
treating osteoporosis. Under the terms of the License Agreement, Unigene also is
entitled to receive milestone payments of an additional $48.5 million,  of which
$15.5 million would be received prior to the  commencement of Phase I studies in
the U.S., as well as revenue from the sale of raw material to Warner-Lambert and
royalties on product sales by Warner-Lambert.  Unigene has retained the right to
license injectable and nasal formulations of calcitonin on a worldwide basis.

         "Based upon  calcitonin's  superior  safety  record  during the past 25
years and its effectiveness in treating  osteoporosis and bone pain,  injectable
and nasal calcitonin  products  currently enjoy sales in excess of $700 million.
We believe that our oral  calcitonin  product could  generate sales that meet or
exceed the projections of other leading  osteoporosis  products",  commented Dr.
Warren Levy,  President of Unigene.  "If our oral calcitonin product reaches its
full potential  Unigene could realize peak year revenue from raw material supply
and royalties that exceed $200 million.  Given the remarkable  efficiency of our
manufacturing process and the effectiveness of our oral delivery technology,  we
believe that our oral  calcitonin  product  could be launched  early in the next
decade at a price that will be competitive with other osteoporosis products."

         Unigene Laboratories,  Inc. has developed proprietary  technologies for
manufacturing  amidated peptide hormones and delivering them orally. The Company
is currently producing FORTICAL(R) (recombinant salmon calcitonin) in compliance
with the FDA's  Good  Manufacturing  Practice  guidelines  at its  manufacturing
facility in Boonton, N.J.

         Parke-Davis,  a  division  of  Warner-Lambert  Company,  is  devoted to
discovering,  developing,  manufacturing  and marketing  quality  pharmaceutical
products.   Its  central   research  focus  is  on  heart   disease,   diabetes,
anti-infectives,  central nervous system, and women's healthcare. Warner-Lambert
is a worldwide company  employing  approximately  40,000 people,  and along with
Parke-Davis is headquartered in Morris Plains, N.J.

         Except for  historical  information,  the  statements  made  herein are
forward looking statements  involving risks and  uncertainties.  These risks and
uncertainties,  including those relating to the timing or successful  completion
of the  Company's  product  commercialization  activities,  are  detailed in the
Company's filings with the Securities and Exchange Commission.



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