Montreal, Quebec December 22, 1999 – Paladin Labs Inc. (CDNX: PLB) announced today that it has signed a definitive agreement to purchase Neuroscience Pharma (NPI) Inc, a wholly owned subsidiary of Neurocrine Biosciences, Inc. (Nasdaq: NBIX). Neurocrine will receive up to C$3.0MM for NPI, which holds exclusive worldwide rights to Neurocrine’s neurosteroid program for central nervous system disorders. In addition, Neurocrine Biosciences will receive royalty payments on future product sales of NPI’s products by Paladin.

“This agreement will provide Paladin with all pre-clinical and clinical data developed from our neurosteroid program for their pursuit in expanding the potential of neurosteroids. Neurocrine will continue to focus on its five clinical development programs in other fields and will have the opportunity to participate in royalties of any commercialized compounds from Paladin’s neurosteroid program,” said Gary A. Lyons, President and Chief Executive Officer of Neurocrine Biosciences Inc.

Jonathan Goodman, President of Paladin stated “Neurocrine’s neurosteroid program focused on the use of DHEA (Dehydroepiandrosterone) in the treatment of memory deficits associated with Alzheimer’s disease. DHEA (Dehydroepiandrosterone) and its metabolite, DHEA-S, are the most prevalent steroids in the body. DHEA and DHEA-S levels peak before age 20 and then decrease progressively with age in both sexes. Restoration of DHEA and DHEA-S levels to those seen in younger individuals has been studied to enhance mood, energy, sense of well-being, functional capabilities, and memory. Neurocrine’s neurosteroid program, which demonstrated safety of DHEA in Alzheimer’s patients, will be used as the foundation to study more broadly the effects of DHEA restoration in the elderly.”

The closing of this transaction is subject to the approval of the Canadian regulatory authorities.

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 Neurocrine Biosciences, Inc.

Neurocrine Biosciences is a leading neuroscience company focused on the discovery and development of novel therapeutics for neuropsychiatric, neuroinflammatory and neurodegenerative diseases and disorders. The Company’s neuroscience, endocrine and immunology disciplines provide a unique biological understanding of the molecular interaction between central nervous, immune and endocrine systems for the development of therapeutic interventions for anxiety, depression, Alzheimer’s disease, insomnia, stroke, malignant brain tumors, multiple sclerosis, obesity and diabetes.

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

Paul Hawran, or Claudia Jones Neurocrine Biosciences, Inc. Tel: (858) 658-7600 e-mail: phawran@neurocrine.com or e-mail: cjones@neurocrine.com Web Site: www.neurocrine.com