Paladin is pleased to announce that the Therapeutic Products Programme has screened Paladin’s New Drug Submission for 5% Amlexanox Paste and found it acceptable for review.

5% Amlexanox Paste is the 1^st prescription drug in the U.S. indicated specifically for the treatment of aphthous ulcers in people with normal immune systems. The product has been proven safe and effective in 4 clinical trials of over 1300 patients. The Block Drug Company successfully launched this product in the U.S. last year.

Jonathan Goodman, President of Paladin, stated "This product will be an important addition to our product portfolio. 5% Amlexanox 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 Block Drugs’ success in Canada once regulatory approval is obtained. Paladin looks forward to the receipt of regulatory approval for this product."

Paladin’s mission is to reach $50 million in sales by 2002 by understanding and serving the needs of Canadian health-care professionals in niche therapeutic areas through the development, licensing and commercialization of innovative products.

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

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements relating to the future performance of Paladin. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially.