PALADIN LABS INC. TO DISTRIBUTE THE NEXT GENERATION MORNING AFTER PILL IN CANADA

Montreal, PQ- December 2, 1999 - Paladin Labs Inc. (“Paladin”) (CDNX: PLB) today announced that it has acquired the exclusive Canadian distribution rights from Women’s Capital Corporation (“WCC”) to the first levonorgestrel-only postcoital contraceptive approved by the U.S. Food & Drug Administration. The product is marketed in the U.S. under the tradename Plan B^tm.

Levonorgestrel-only emergency contraceptive products have been shown to be associated with fewer side-effects than combined oestrogen/progestin products. The product is currently under regulatory review by Canadian health authorities and stands to be the first Levonorgestrel-only emergency contraceptive approved for sale in Canada.

Dr. Sharon Camp, President of WCC and long-time activist for women’s health, says “Plan B^tm is a an important advance in reproductive health-care for women. According to clinical data published in the Lancet (August 8, 1999) and our FDA-approved labeling, Plan B^tm demonstrated a superior safety profile (less nausea and vomiting) over the 25-year old Yuzpe regimen, which was recently approved in Canada. Plan B^tm is not effective if a woman is already pregnant and will not terminate an existing pregnancy.

After having examined many options,” Camp continued, “we are thrilled to be working with Paladin. They are a young, dynamic company that has a proven ability to market innovative products to the Canadian market.”

Mr. Jonathan Goodman, President of Paladin stated “Based upon its superior side-effect profile over currently approved products in Canada, we believe that Plan B^tm will become the emergency-contraceptive of choice for Canadian women. We are privileged to be associated the WCC and their quest to develop superior reproductive health products like Plan B^tm.”

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 info@paladin-labs.com.

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

About Women’s Capital Corporation

The Women’s Capital Corporation (WCC) is a privately held company organized to bring Plan B to the U.S and Canadian markets and to develop other critically-needed reproductive health products for women. Financing for Plan B^tm has come, in large part, from U.S. foundations and from several local Planned Parenthood organizations who have made an equity investment in WCC. For more information about WCC, please visit the Plan B Web Site at go2Planb.com or send e-mail to info@thewcc.com.

PALADIN LABS INC.

          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 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.

For more information:

Lennie Ryer, C.A., CFE Chief Financial Officer Paladin Labs Inc. Tel: 514-340-5067 e-mail: lryer@paladin-labs.com Web Site: www.paladin-labs.com

Dr. Sharon Camp President Women’s Capital Corporation Tel: 301-753-1929 e-mail: info@thewcc.com Web Site: go2Planb.com