Montreal, PQ- December 23, 1999 – Paladin Labs Inc. (“Paladin”) (CDNX: PLB) today announced that it has acquired the exclusive Canadian license from Baker Norton Pharmaceuticals, Inc., a subsidiary of IVAX Corporation (AMEX: IVX), to a line of established dermatology products. The products include X-SEB^®, P&S^® , Ultra Mide^® and Aquaderm^® lotions and shampoos, with estimated sales in Canada of approximately $400,000.

Jonathan Goodman, President of Paladin stated “We are pleased that IVAX has chosen Paladin as their Canadian marketing and distribution partner. These products will contribute nicely to our growing portfolio of specialty dermatology products. We look forward to expanding our relationships with U.S. pharmaceutical companies in order to unlock value in their non-promoted product portfolios”.

Dr. Rafick Henein, Senior Vice President, IVAX Corporation and President of Zenith Goldline Pharmaceuticals, Inc. stated “Our dermatology products have a strong pedigree within the Canadian dermatology community and will respond nicely to promotion. We anticipate that Paladin will be able to leverage their existing relationships with Canadian dermatologists to expand the market for our products”.

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.

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.

® X-SEB^®, P&S^®, Ultra Mide^® and Aquaderm^® registered trademarks of Baker Norton Pharmaceuticals, Inc.

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