FOR IMMEDIATE RELEASE

PALADIN APPOINTS NEW DIRECTOR

Montreal, Canada, March 3, 2004 - Paladin Labs Inc. (TSX: PLB), a leading Canadian specialty pharmaceutical company, today announced the appointment of Mr. Gerald P. McDole to its Board of Directors.

Mr. McDole was formerly President and CEO of AstraZeneca Canada Inc. until his retirement in October 2003. Mr. McDole is a member of the Board of Directors of Medicure Inc. and Cipher Pharmaceuticals Inc. He is the former Chairman of the Advanced Coronary Treatment Foundation and a former director of the Institute of Health Economics in Edmonton and the Canadian Stroke Network. He is past President of the Canadian Foundation for Pharmacy. Mr. McDole holds a bachelor of science and a Certificate of Business Management from the University of Manitoba, an MBA from Simon Fraser University, and a business administration diploma from the University of Toronto. Mr. McDole has been selected for inclusion in the 2002 Canadian Healthcare Marketing Hall of Fame.

“We are delighted to welcome Mr. McDole to our Board. Mr. McDole’s expertise, strategic input and extensive industry knowledge will be a valuable resource as we move forward in executing on our business plan,” said Jonathan Ross Goodman, President and CEO of Paladin Labs. “Paladin’s Board of Directors now consists of former Canadian Presidents from AstraZeneca, Merck Frosst, Novartis, and Wyeth.”

About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a 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