2^nd Quarter 1999 Results

The Company reported $5,890,131 of revenues as at the end of the 2^nd quarter of 1999. This represents a 574% increase versus a year ago. Paladin earned $1,375,411 of net income or $0.15 per share for the period ending June 30, 1999 versus net income of $130,599 or $0.03 per share for the comparable period in the previous fiscal year.

Lennie Ryer, C.A., Chief Financial Officer of Paladin, stated "Our financial results as of the end of the 2^nd quarter of the 1999 fiscal year continue to reflect significant growth in both revenues and profitability. With working capital in excess of $11,000,000, and virtually no debt, we will continue to fuel our rapid growth by creating and capitalizing upon opportunities to strategically expand our product line.

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About Paladin Labs Inc.

Paladin Labs, headquartered in Montreal, Quebec is a Canadian developer, marketer and distributor of innovative pharmaceuticals currently offering products in urology, dermatology, rheumatology and other specialty markets. For more information about Paladin, please visit the Paladin Web Site at www.paladin-labs.com or send e-mail to ir@paladin-labs.com.

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 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.

Paladin Labs Inc.
6111 Royalmount Ave., bureau 102
Montreal, Quebec, H4P 2T4
Tel.: (514) 340-1112
Fax: (514) 344-4675