FOR IMMEDIATE RELEASE

PALADIN FILES NEW DRUG SUBMISSION WITH HEALTH CANADA FOR APPROVAL OF CIRCADIN®

Montreal, Canada, May 24, 2002 - Paladin Labs Inc. ("Paladin") (TSX: PLB) announced today that, on behalf of Neurim Pharmaceuticals, it has filed a New Drug Submission for the approval of Circadin® (controlled release melatonin tablets) with the Therapeutic Products Directorate ("TPD") of Health Canada. The submission seeks Health Canada's approval for use of the drug in the treatment of sleep disorders in the elderly.

"The popularity of melatonin as a remedy for occasional sleeplessness in the United States and its absence from the Canadian market demonstrated a clear opportunity for Paladin to fulfill an unmet need," remarked Paladin CEO Jonathan Goodman. "We intend to be the first distributor of melatonin to Canadian elderly, who at present are unable to obtain the product legally in Canada."

Paladin acquired the exclusive Canadian distribution rights for Circadin® from Neurim Pharmaceuticals (1991) Ltd. in July 1997. Circadin® contains 2 mg of melatonin in a controlled-release formulation. Unlike the United States, where the FDA considers melatonin a health food supplement, the TPD regards melatonin as a new chemical entity and, as such, requires the filing of a full NDS. As a result, there is currently no melatonin being sold legally in Canada, despite robust sales in the United States. Circadin® has the potential to be the first melatonin product approved for sale in Canada.

About Paladin Labs Inc.
Paladin Labs, headquartered in Montreal, Quebec, is a rapidly growing pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian market. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's most profitable publicly traded pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Paladin Web Site at www.paladinlabs.com

This news release may contain forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval.

For further information please contact:

Paladin Labs Inc.
Samira Sakhia, Chief Financial Officer
Tel: 514-340-5067
e-mail: info@paladin-labs.com
Web Site: www.paladinlabs.com

The Equicom Group Inc.
Joanna Longo
Investor Relations
Tel: 416-815-0700 ext.233
e-mail: jlongo@equicomgroup.com