Paladin is pleased to announce that it has acquired the exclusive Canadian distribution rights for AntizolŪ from Orphan Medical, Inc. AntizolŪ is the first drug indicated as an antidote for ethylene glycol poisoning, or to treat suspected ethylene glycol ingestions.

Ethylene glycol is the main component of antifreeze and coolants. The ingestion of ethylene glycol is a medical emergency characterized by central nervous system depression, severe metabolic acidosis, renal failure and coma. Untreated ingestions can be lethal if left untreated or undiagnosed.

AntizolŪ, commonly known as 4-MP (4-methylpyrazole), is a synthetic alcohol dehydrogenase inhibitor which effectively blocks formation of toxic ethylene glycol metabolites responsible for metabolic acidosis and renal damage. Therapy with AntizolŪ has shown minimal central nervous system depressant effects. The most frequent adverse reactions to the product are headache (12%), nausea (11%), and dizziness (7%). Minor allergic reactions have been reported.

AntizolŪ is an injectable which will be initially available under the Special Access Programme (SAP) to medical practitioners requesting the product. The SAP is responsible for authorizing sale of pharmaceutical products that are not yet approved in Canada. Paladin and Orphan Medical intend to submit AntizolŪ for approval to the TPP by the fourth quarter of 1999.

Jonathan Goodman, President of Paladin stated "AntizolŪ serves an unmet need in the treatment of ethylene glycol poisoning. This product has proven its value in the marketplace as demonstrated by its encouraging sales results in the US. AntizolŪ is a truly innovative product and we feel that it will be a valuable addition to our rapidly growing portfolio of niche therapeutic products."

Paladin’s mission is to understand and serve 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.