FOR IMMEDIATE RELEASE

PALADIN APPOINTS VICE-PRESIDENT, SCIENTIFIC AFFAIRS

Montreal, Canada, October 16, 2002 - - Paladin Labs Inc. (TSX: PLB), a Canadian specialty pharmaceutical company focused on marketing and selling urology, endocrinology and women's health products, today announced the appointment of Dr. Tom Koutsavlis, B. Sc., MD CM, M. Sc., CSPQ, FRCPC to the position of Vice-President, Scientific Affairs.

"Dr. Koutsavlis will play a key role in leading our clinical development programs and expanding our in-house capabilities to assess promising new therapeutics in late-stage clinical development," said Jonathan Ross Goodman, President and CEO of Paladin Labs Inc.

Before joining Paladin, Dr. Koutsavlis was Associate Medical Director and Program Director with CroMedica Inc. and Acting Senior Medical Director with PRA International in Ottawa, Canada. He has been active in supporting and directing clinical trials, providing medical research expertise, filing regulatory submissions and performing pharmacovigilance activities. Dr. Koutsavlis has held positions in the joint departments of Epidemiology and Biostatistics and Occupational Health in the Faculty of Medicine at McGill University, and the Montreal Regional Public Health Department. He has trained in pharmacoeconomics and pharmacoepidemiology and continues to pursue an active academic career. Dr. Koutsavlis' educational background includes a Master of Science (Epidemiology and Biostatistics) and a Doctor of Medicine from McGill University. He is both a Quebec College and Royal College certified specialist in Community Medicine / Public Health.

About Paladin Labs Inc:
Paladin Labs Inc., 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.
Bruce Wigle, Investor Relations
Tel: (416) 815-0700 ext.228
e-mail: bwigle@equicomgroup.com