FOR IMMEDIATE RELEASE

PALADIN APPOINTS VICE PRESIDENT, BUSINESS DEVELOPMENT

Montreal, Canada, July 8, 2003 - Paladin Labs Inc. (TSX: PLB), a leading Canadian specialty pharmaceutical company, today announced the appointment of Mr. Mark Nawacki, CA, MBA, to the position of Vice President, Business Development effective September 1, 2003.

“Mark will play a lead role in identifying and pursuing acquisition opportunities for new products to support our continued growth within the Canadian specialty pharmaceutical market,” said Jonathan Ross Goodman, President and CEO of Paladin Labs Inc. “Having recently worked with Mark on a significant licensing agreement for Paladin, I am confident in his ability and determination to seize value creation opportunities. We look forward to his contributions as part of the Paladin team.”

From 1998 to 2003, Mr. Nawacki held senior leadership positions in business development and finance with the Canadian subsidiary of Pharmacia Corporation, a global top 10 pharmaceutical company that is now part of Pfizer, Inc. Most recently, he led all of Pharmacia Canada’s business development initiatives, including partnering, acquisitions, divestments, and prospecting of the Canadian biotech industry. While at Pharmacia, Mr. Nawacki led the negotiation of a licensing agreement with Paladin for the Canadian rights to a portfolio of Pharmacia endocrinology and women's health brands, including Dostinex® and Estring®. In year one, this agreement generated a 22% increase in revenues and an 11% increase in operating earnings from a previously non-promoted line of products. Prior to Pharmacia, Mr. Nawacki was Manager, Brands Finance at Pillsbury Canada. From 1993 to 1997, he served as a consultant with Arthur Andersen, focusing on strategic financial advisory assignments in the areas of valuations, business reviews, corporate finance and recovery. Mr. Nawacki is a Chartered Accountant and holds an MBA from the University of Toronto, Rotman School of Business.

About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a leading specialty 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 leading specialty 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 and other factors that are discussed in the Management Discussion and Analysis published in the Company's annual report.

For more information please contact:

Samira Sakhia Chief Financial Officer Paladin Labs Inc. Tel: (514) 340-5067 email: info@paladin-labs.com Website: www.paladinlabs.com

Bruce Wigle Investor Relations The Equicom Group Inc. Tel: (416) 815-0700 ext. 228 email: bwigle@equicomgroup.com