Paladin is pleased to announce that it has signed a binding Letter of Intent with Access Pharmaceuticals, Inc. (OTC Bulletin Board: AXCS) for the Canadian license to amlexanox 5% paste for the treatment of canker sores.

Paladin will immediately commence the registration process for Canada and bear all costs associated with the filing and prosecution of the product license application including user fees. In addition, Paladin will pay additional milestones based on cumulative sales revenue and will pay a royalty on sales.

Jonathan Goodman, President of Paladin, stated "This product will be an important addition to our company. Amlexanox 5% paste is approved for sale in the United States and is being successfully marketed by Block Drugs. We are confident that Paladin will be able to duplicate in Canada Block Drugs’success once Canadian regulatory approval is obtained."

Commenting on the agreement, Kerry Gray, President and CEO of Access Pharmaceuticals, stated "We are pleased that we have been able to form this alliance with Paladin, a company which has demonstrated its ability to maximise product opportunities in the Canadian market. With Paladin immediately commencing the registration process this represents another important step in recognising the global potential for this product."

Access Pharmaceuticals, Inc., is a site-directed targeting company using bioresponsive drug carriers to target and control the release of therapeutic agents into sites of disease activity and clear the non-targeted drug fraction. In addition to amlexanox, Access is developing a unique polymer platinate for use in the treatment of cancer. Access also is developing in conjunction with its partner Strakan Ltd., a topical zinc delivery system called ResiDerm that provides rapid delivery and reservoir of a drug in the skin.

Paladin Labs Inc. is a public company whose shares trade on the Vancouver Stock Exchange under the symbol PLB.