SOURCE: Unico, Inc.

August 02, 2006 09:00 ET

Unico, Inc. Submits Rule 10b-17 Notification on Reverse Stock Split

SAN DIEGO, CA -- (MARKET WIRE) -- August 2, 2006 -- Unico, Incorporated (OTCBB: UNCN), a natural resource company in the precious metals mining sector, has given notice to the National Association of Securities Dealers, Inc. (NASD), pursuant to Rule 10b-17 of the Securities and Exchange Act of 1934, that effective August 11, 2006 at 8:00 a.m. Eastern time, the company will effect a reverse split of its issued and outstanding common stock on the basis of one share of common stock to be issued for each 100 shares issued and outstanding.

There are currently 4,909,096,450 shares of the company's common stock issued and outstanding. Once the reverse split is effected, there will be approximately 49,090,965 shares of common stock issued and outstanding, without taking in consideration the rounding up of fractional shares. One whole share will be issued in place of each fractional share that results from the reverse split. No cash will be paid for fractional shares.

New certificates of common stock will not be issued, and no action is required by shareholders as a result of the reverse split.

At a special meeting of shareholders held on February 2, 2006, the holders of a majority of the company's common stock approved an authorization for Unico's Board of Directors, at its discretion, to effect a reverse stock split of Unico's common stock at a ratio of up to one-for-one hundred. The authorization was approved with 344,598,317 shares voted in favor, 113,873,656 shares voted against and 4,793,109 shares abstained. With over 69% of the outstanding common stock voting in favor, the proposal was approved. Approximately 74% of the shares voted regarding this proposal were cast in favor.

As stated in the proxy statement for the special meeting of shareholders, Unico's Board of Directors proposed the authorization for the reverse split with the belief that it may increase the trading price of the common stock. An increase in the price of the common stock should, in turn, generate greater investor interest in the common stock, thereby enhancing the marketability of the common stock to the financial community. In addition, the resulting reduction in the number of issued and outstanding shares of common stock will provide the company with additional authorized but un-issued shares which could be utilized for future financing, acquisitions or mergers or to otherwise carry out the company's business objectives.

Unico chief executive officer Mark A. Lopez commented, "The Board of Directors pursued the authorization for the reverse split to give the company the ability to institute a capital structure that would allow it to access financing that will be applied directly to operations and the expansion of its business. A significant majority of shareholders voted in favor of this proposal.

"Since the authorization was approved in February 2006, Unico has dedicated its efforts to developing regular and significant revenue streams from its mining operations. These efforts have included the ongoing reconstruction of the mill and processing facility at the Deer Trail Mine in Marysvale, Utah, so that current stockpiles of material can be processed and sold. The company has also moved forward on independent geological core logging and splitting verification on samples taken from the underground diamond core drilling program conducted at the Deer Trail Mine in 2005. Areas being identified of interest to potentially contain base and precious metal content are being sent out for further assay analysis," Mr. Lopez said.

"All of these efforts are oriented around establishing value in Unico's mine properties, and this reverse split is expected to provide the company greater flexibility as it moves forward to maximize the potential of its subsidiary holdings," added Mr. Lopez.

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About Unico, Inc.

Unico, Inc. (OTCBB: UNCN) is a publicly traded natural resource company in the precious metals mining sector that is focused on the exploration, development and production of gold, silver, lead, zinc, and copper concentrates at its three mine properties: the Deer Trail Mine, the Bromide Basin Mine and the Silver Bell Mine. For more information, please visit

Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and such Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operation results to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors, which could materially affect the company and its operations, are included on certain forms the company files with the Securities and Exchange Commission.

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